According to today's RJ, Sun International has canceled its plans to buy the Desert Inn. The reason given for the change in plans is that Sol Kerzner, who is the chairman, is trying to take the Sun International company private and they don't have the money available to purchase the DI. Let's hope whoever decides to purchase the hotel will keep it as it is.

Lee Ann
Past, Present and Future Forum Moderator
leeann@talkvegas.com

LEEANN,
I heard about that when I was there last Friday. Bummer, Sun was fixing to come in there and really spend some money there.

I like you, hope they never change the first class service and personnel there. I just love to go there and unwind from the mega-resorts.

I am Confused. Please help. I thought Sun Int. has owned the DI for sometime now. Last year I met a guy who knows my boss who's with SI and he said so. What's up?

CR,
Starwood has owned the DI for the past several years. It is the only gaming property they own and they want out.

CR,
Sun made an offer last year to purchase the DI from Starwood for $275,000,000. The deal was not final yet and last week Sun changed their mind according to the article I read. From reading about this sale, as well as the Mirage/MGM deal, there must usually be clauses written into the contracts that spell out what happens if either party wants out of the deal before it is finalized. That's what happened here. Sun decided they wanted out of the deal. According to the RJ, because they want out of the deal, if the Desert Inn is sold for less than the agreed price of $275,000,000 Sun must pay 50% of the difference in price up to a maximum of $15,000,000. If the Desert Inn is sold for more the the agreed price, Sun will share in 50% of the excess.

Lee Ann
Past, Present and Future Forum Moderator
leeann@talkvegas.com

Sounds like Sun is doing a little gaming of there own, to me!


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Lee-PA
Moderator, What's New Forum
lee@talkvegas.com

According to today's Las Vegas Sun, an offer has been made to Starwood for the Desert Inn by Boccardi Capital Systems Inc. The company is headed by Italian resort investor Fabrizio Boccardi. The $200 million dollar offer was immediately turned down by Starwood as inadequate.
Boccardi also offered to buy only the hotel for $100 million and allowing Starwood to sell the golf course to another party.

The article in the Sun also mentions that if Boccardi is successful in the purchase the company has stated that it is looking at a project that "would encompass 2,500 to 3,000 rooms, and feature a 100,000 square foot casino."

Lee Ann
Past, Present and Future Forum Moderator
leeann@talkvegas.com

Peice mealing this property out is not in the best intrest of the DI.
If this goes through, I feel it will be just another large casino and that won't work (as I see it) in the area it's in.
M2C
Lee-PA

Lee,
I don't think we have to worry about
Starwood selling the hotel and golf course separately. That was an option that Boccardi brought up in addition to their offer to buy everything. I'm glad Starwood turned them down. I am wondering if they will increase their offer and wind up with the DI anyway, though. I hope they don't get the property because it sounds like all they want to do is implode it and build another mega-resort.

Lee Ann
Past, Present and Future Forum Moderator
leeann@talkvegas.com