Identifies Trends for 2005 and Beyond
According to the survey - which draws on data gathered from multiple sources, including state gaming commissions, casino companies and project developers from around the country, four identifiable trends emerged in 2005 and are likely to continue into 2006 and beyond:
1. Total Traditional & Native American casino development in 2005 is expected to outpace previous years – In 2005, total casino development is anticipated to exceed $4 billion, as compared to approximately $3 billion in both 2004 and 2003.
2. Future casino development looks strong - Approximately $14.5 billion in combined casino projects are under construction or proposed for 2006 through 2009. Additionally, over $14 billion in casino development is rumored, comprised of 67 projects.
** - A “traditional” casino is any land-based, dockside, and riverboat casino that is subject to all local, state and federal laws and regulations that govern gaming. A “Native American” casino is owned/developed by a Native American tribe and is subject to Indian Gaming Regulatory Act of 1988 (IGRA), but may be operated by a third-party.
3. Traditional casino development is in favor, while Native American development is steady – Traditional casino projects either under construction or proposed equate to over $11 billion through 2009, while Native American casino projects under construction or proposed through 2009 equate to roughly $3 billion.
4. “Mega-resorts” such as the new Wynn Casino in Las Vegas continue to draw the most developer interest . . . and capital – Developments such as the $4 billion Project City Center in Las Vegas are attracting the “big money,” Other Las Vegas casinos are following suit in the “mega-resort” trend, including the Venetian (Palazzo) and the Cosmopolitan.
Additional topics covered in the 2005 HREC® Casino Development Survey include “rumored” development activity, hotel and amenity-only development, micro-trends in Traditional as well as Native American casino development, and “racino” development.
A copy of the complete survey is enclosed with this press release, or may be obtained by contacting Chris Stein, Vice President: firstname.lastname@example.org.
Michael Cahill, President and Founder of HREC® - Hospitality Real Estate Counselors, called the 2005 survey “The most interesting collection of data and trends on casino development in years.” He added, “Casino development remains robust and profitable, in locations ranging from Pawtucket, Rhode Island, to Fresno, California.” He concluded, “HREC looks forward to continuing to work with developers who are contemplating new casino projects, as well as long-time industry participants.”
About HREC® - Hospitality Real Estate Counselors
HREC® - Hospitality Real Estate Counselors is a leading national hotel and casino advisory firm specializing in property sales, debt financing, consulting, appraisal and litigation support. The services provided by the HREC® consulting group include market analysis, feasibility studies, real estate appraisal, litigation support and investment due diligence for both hotels and casinos. HREC® is recognized for its personal service, attention to detail, intellectual capital and creative problem solving.
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