Thursday, June 01, 2006

Harrah's Entertainment Chairman and Chief Executive Gary Loveman says he is
getting pretty excited about his company's planned transformation of the
center Strip. After meeting Loveman last week in his offices at Caesars
Palace, it is clear the professorial executive believes the project will
stand apart from some of the other big developments that are planned or
being built on the Strip. He said he expects to reveal details of the center
Strip project by the end of the summer, but the company definitely isn't
thinking small. Among Harrah's assets in the area: Caesars and the Rio on
the west side of the Strip; Harrah's Las Vegas, Imperial Palace, Flamingo,
Bally's and Paris Las Vegas on the east side, along with the site of the
demolished Bourbon Street and a lot of additional land behind those
properties.

Loveman isn't saying what and where the company plans to build, but some of
his comments offer clues about the scope and nature of his plans.

Key to the development: Creating a sense of place for the entire center
Strip area that Harrah's controls, using Disneyland as an example.

"When you're visiting Disneyland, you know you're not outside anymore; that
you're in Disneyland," Loveman said, saying that the properties that now
look separate and distinct from the outside would be tied together in a
sensible way to communicate to visitors that the individual resorts are part
of a greater whole.

One way will be with signs, another will be to use Harrah's industry-leading
Total Rewards card system and modern technology - think BlackBerries and
cell phones - to stay in close touch with guests during their visits.

Loveman envisions using the Total Rewards loyalty card system and electronic
communications to more closely interact with customers, perhaps letting
Paris guests know that tickets are available to see Celine Dion at Caesars .

Loveman didn't say what resorts or property expansions he would build, but
said the Strip frontage near Flamingo Road in front of Caesars and Bally's
is underutilized.

He also acknowledged the company's Horseshoe brand is strong, and available.

Which properties will remain? Caesars, Harrah's, Paris and the Flamingo
will; Imperial Palace won't, and Bally's, with one of its towers less than
satisfactory, is a question mark.

What about Boyd Gaming Corp.'s Barbary Coast, smack-dab in the middle of
Harrah's canvas?

Loveman says he knows how central its location is, and that he wants it. And
that Boyd knows he wants it. But he declined to say whether he thought a
purchase of the property, some kind of an asset trade, or even an outright
purchase of Boyd would be how the property changes hands - if it does.

Loveman credited builder and Rio developer Tony Marnell with one of the most
important things he's been told about operating Las Vegas resorts.

"You have to feed your customers a steady supply of new stuff," he said.

Loveman learned Marnell's lesson - he's getting ready to feed Harrah's
customers a whole lot of new stuff.

. . .

Loveman was undoubtedly disappointed - and I was surprised - by Singapore's
announcement Friday that Venetian owner Las Vegas Sands was its pick to
develop a $3.2 billion casino and convention resort at Marina Bay.

Industry insiders both here and across the Pacific told me they thought
Sands would be too tied up with its major Macau development.

I had thought MGM Mirage or Harrah's would get the nod. I was wrong, but
extend congratulations to Sands and its owner, Sheldon Adelson, whose
message about the power of the convention business is persuading doubters
around the world.

Loveman told me that waiting for the Singapore announcement made him more
anxious than he has been since he had to wait for his admission letter to
graduate school.

The earlier wait had a happier ending, but perhaps Loveman's patience will
be rewarded when Singapore awards its second casino license for Sentosa
island later this year, an opportunity Harrah's also plans to pursue.