Phil Ruffin, the owner of the Circus Circus resort, wants to sell it. He bought it in 2019 for $825 million and wants to sell it for Five Billion Dollars!
Phil says that he wants the money to buy other properties on the Strip.
The legendary hotel was built in 1968 by Jay Sarnos—the man who built Caesar Palace. When it first opened, there was no hotel tower, only the casino.
Yeah, it’s not the glitziest or the most modern. As an older hotel, it has its issues. What hotel doesn’t? It’s also one of the few where you know what you are getting.
However, this is the place to stay for anyone looking for a budget-friendly place to stay or bring the family and who wants to be on the Strip.
It even has its own amusement, water, and RV parks. Yes, the RV park is still there.
Of the recent property owners, including MGM, Phil is the first one to take any interest in it besides taking the money and running away. He has recently invested some money into much-needed upgrades and repairs. And is not done with it.
Finally, you have the best part: 102 acres. Half of it is empty land ready for immediate development, and the other half is “festival grounds.”
Is it worth it?
Pros:
Iconic Brand Recognition: Circus Circus is a well-known name in Las Vegas, especially for families. This existing brand recognition could be leveraged for marketing and attracting customers.
Large Property with Development Potential: The resort sits on a sizable piece of land on the Las Vegas Strip (102 acres). This offers opportunities for expansion, renovation, or redevelopment.
Established Infrastructure: Circus Circus has existing infrastructure in place, including a casino, hotel rooms, restaurants, and attractions. This can save time and money compared to building a new resort from scratch.
Potential for Repositioning: With the right investment and strategy, Circus Circus could be repositioned to target a different demographic or offer a more upscale experience, potentially increasing revenue.
Affordable Acquisition Cost: Compared to some of the newer luxury resorts on the Strip, Circus Circus might be more affordable, making it a potentially attractive investment.
Cons:
Outdated Image and Facilities: Circus Circus is often seen as an older, less glamorous option compared to other resorts on the Strip. This could deter some visitors and require significant investment to renovate and update the property.
Competition: The Las Vegas Strip is highly competitive, with numerous resorts vying for customers. Circus Circus would need a strong strategy to stand out and attract visitors.
Changing Demographics: Las Vegas has been trending towards more luxurious and upscale experiences. Circus Circus's family-friendly focus might need to evolve to accommodate changing demographics and preferences.
Operational Challenges: Managing an aging resort like Circus Circus comes with operational challenges, including staffing, maintenance, and ensuring customer satisfaction.
Potential for Negative Publicity: Circus Circus has faced some negative reviews and perceptions in the past. The new owner would need to address these issues and work to improve the resort's reputation.
Conclusion
I would say this is the place to buy for anyone wanting to get their foot into the Las Vegas Strip right now. Maybe not for $5 billion. But no matter the number, this is a great place to start.
The north end of the strip has seen some significant improvements, like the opening of Fontainebleau. It can only get better with more investments and developments.
I wish him luck.
Your Thoughts?