TURNING AROUND A DISTRESSED CASINO & HOTEL RESORT
Challenge:
A casino hotel resort property in southern Nevada was experiencing declining revenues and declining EBITDA. The market overall was declining and the property had not had any capital improvements in over 10 years.
Solutions:
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CMS Group's financial team did a full audit to find cost savings and areas of improvement in all departments of the casino, hotel, food & beverage, spa, and entertainment. This included labor allocations in all departments.
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CMS Groups operations team completed a gaming floor analysis to maximize revenue per square foot, and make sure the correct gaming mix was in place and the best denomination mix was utilized for best optimization.
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The CMS Group marketing group began with a complete market analysis including a local, regional, and destination analysis. We completed a thorough data hygiene / cleanse of the database to correct outdated information in the database or incorrect data. The marketing team reallocated budgets moving from traditional marketing channels to a targeted marketing campaign utilizing digital marketing.
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Customers that were in VIP level were decreasing their trips to the casino year over year. CMS Group did a complete analysis of the Player Development / Host program. After analysis, CMS Group created a new player development program that is structured on commission based on the performance of the hosts individually and based on the entire department's performance.
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The hotel was experiencing declining occupancy year over year and month over month. CMS Group did a complete revenue management analysis over 36 months to get a complete report on seasonality trends, market trends, etc.
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Ticket sales for entertainment were declining year over year. CMS Group built hotel/entertainment packages. CMS Group built partnerships with area vendors and online ticket outlets to increase exposure of the shows and also increase ticket sales.