Gaming Services - Overview

THE HOSPITALITY INDUSTRY'S CHALLENGE

Casino owners, potential owners, lenders and investors must be able to act and plan with confidence when considering gaming projects. That can be accomplished only with full knowledge of the income producing asset in question.

There is so much knowledge needed to ascertain whether a gaming facility should be built, financed, bought or sold, and once in operation, how to keep it running smoothly and profitably. Changing markets and variances in supply and demand can cause fluctuations in how a gaming operation performs and is valued. The most up-to-date and precise information is necessary at all times.

THE HVS CLIENT

Our gaming services are driven by the needs of our clients. Those who come to HVS want information that is highly regarded and accepted by leading lenders, investors, operators and other interested parties. We stand alone in our support for developers and lenders who are new to this marketplace, as well as to those who have vast experience in gaming.

The unique needs of each client are met because we structure our assignments in order to meet your timing needs and all of your other requirements. If you need the highest level of credibility from a professional staff that has extensive experience, turn to HVS Gaming Services.

THE HVS SOLUTION

HVS International was founded in 1980 to satisfy the demand for strong consultation services and valuation needs. Over the years, the scope of our professional services has expanded to include a wide range of consulting activities, including those related to the gaming industry. HVS Gaming Services has performed valuation and/or consulting services for over 100 existing and proposed gaming operations. Additional services are also provided to the gaming industry by the following HVS Divisions: Executive Search; Convention, Sports & Entertainment Facilities Consulting; Food & Beverage Services; and Investment Banking.

Our database of gaming information, combined with broad insight and extensive experience, enables HVS Gaming Services to produce well-documented appraisal and consulting reports that contain fully supported and robust value conclusions and consulting recommendations.

The HVS Gaming Services Division is staffed by Elaine Sahlins and Shannon Okada under the directorship of Suzanne R. Mellen, CRE, MAI, FRICS in the San Francisco office of HVS International.

Elaine Sahlins holds an undergraduate degree from Barnard College, Columbia University in New York City and an MPS degree in Hotel Administration from Cornell University. After graduating from Cornell, she worked for VMS Realty in Chicago analyzing hotel investments and went on to join Security Pacific in San Francisco, which was subsequently acquired by Bank of America. Elaine developed her in-depth casino appraisal experience with her former employer, Bank of America, for whom she worked for over seven years. As the primary casino reviewer for the bank, she appraised or reviewed over 25 casino properties in Nevada, Louisiana, Missouri, and Mississippi. Major appraisal and review assignments included the MGM Grand Casino and Hotel, New York-New York Casino hotel and the Station properties in Las Vegas. She has also managed and reviewed appraisals of riverboats in St. Louis, Biloxi, and New Orleans.

Shannon Okada holds an undergraduate degree in Marketing and Management from the University of Hawaii, Honolulu, Hawaii, and a Masters degree in Hotel Administration from the William F. Harrah School of Hotel Administration, Las Vegas, Nevada, as well as MBA and JD degrees from Pepperdine University in Malibu, California. Shannon has worked as a practicing attorney for law firms in Hawaii and California and gained his operational experience at the Paris Casino Hotel in Las Vegas, Nevada.

Suzanne Mellen has a B.S. degree in Hotel Administration from Cornell University and holds the following designations: MAI (Appraisal Institute), CRE (Counselor of Real Estate), ISHC (International Society of Hospitality Consultants), and FRICS (Fellow of the Royal Institution of Chartered Surveyors). She has been evaluating lodging, gaming, and associated real estate for 27 years, has authored numerous articles, and is a frequent lecturer and expert witness on the valuation of gaming facilities, hotels and related issues. She developed her gaming valuation expertise during the early 1980's in the performance of ad valorem tax appeals for several major casino hotels. Since that time she as served as Director of the HVS Gaming Services Division, overseeing the firm's wide-ranging gaming practice. Our consultants and appraisers understand the gaming business. Most have degrees in hotel management from top hotel schools, and each has actual hotel operating experience. Our staff has extensive training in real-estate and valuation techniques.

THE HVS TOOLS

Our database of gaming investment information includes information on virtually every major gaming market in the United States, with increasing data from international markets. HVS Valuation Services has access to hundreds of casino income and expense statements, management agreements, leases, and other related financial documents. Valuations and consulting recommendations must be fully supported, and our databases allow the HVS team to provide thorough documentation for our conclusions.

The scope of each HVS Gaming Services assignment and the resulting report are structured to meet the client's individual needs.

Market Studies

HVS Gaming Services prepares market studies that provide comprehensive research into the market support for gaming operations, as well as for ancillary facilities such as hotels, restaurants, convention centers, arenas, golf courses, recreational vehicle parks, retail facilities, and other non-gaming ventures. Our studies can be customized to determine market support for a specific project or to provide recommendations regarding the optimal size and range of casino and ancillary developments. HVS Gaming Services will provide a forecast of gaming win and other applicable revenues based on the market derived data and an analysis of comparable markets and operations.

HVS Gaming Services prepares detailed income and expense projections for casino and ancillary operations to determine the cash flow available to meet debt service, given either market financing or a specific deal structure. Based on the estimated project cost and financing structure, we can analyze the overall financial feasibility of a gaming project.

Narrative Appraisal Reports

In addition to an opinion of value, a typical HVS Gaming Services narrative appraisal report can include a comprehensive market study and full feasibility analysis. Many lenders and developers prefer our appraisals to standard feasibility studies, because HVS Gaming Services reports provide thorough market documentation and an MAI-certified estimate of value in one package. Projects attract immediate attention when accompanied by an HVS Gaming Services report.

Specialized gaming services include the following:

• Gaming supply, demand, and revenue analyses
• Gaming related lodging supply and demand analyses
• Gaming and related lodging valuations
• Mortgage loan appraisals
• Second-opinion reviews of studies performed by other firms
• Going-concern valuations encompassing real estate, personal property, and business value
• Leasehold and leased fee valuations
• Expansion and/or renovation recommendations and analysis of the impact on property value
• Break-even analyses
• Site evaluations to determine the potential for development
• Development assistance for new gaming projects, expansions, and renovations
• Ownership and financial structuring
• Due diligence services
• Native American gaming facilities; feasibility analyses and valuation of existing developments
• Analyses and recommendations for city, county and state governments pertaining to tax rates and tax structures

Experience

HVS Gaming Services has performed appraisals and feasibility studies in every major gaming market in the United States and several markets internationally on projects ranging from full-service hotel casinos to multi-use riverboat complexes, racetracks and racinos, to Native American Developments and Las Vegas style Mega Resorts. Our staff maintains surveillance of major gaming markets and tracks the latest economic trends. Following is a partial list of gaming-related assignments performed by HVS professionals.

Portfolio Valuations
Boyd Gaming Corporation	Various locations
Lady Luck Gaming Corporation	Various locations
Isle of Capri	Various locations
Land-based Gaming Facilities
Existing
Grand Princess Entertainment Center	Jolly Harbor, Antigua
Sands Casino Hotel	Macau, China
Cliff Castle Casino	Camp Verde, Arizona
River Rock Casino	Geyserville, California
Gold Country Casino	Oroville, California
Fantasy Springs Casino and Proposed Hotel	Palm Springs, California
Agua Caliente Casino & Resort	Rancho Mirage, California
Colorado Grande Casino	Cripple Creek, Colorado
Greektown Casino	Detroit, Michigan
Boulder Station Hotel Casino	Boulder Highway, Nevada
Sam's Town Hotel and Gambling Hall	Boulder Highway, Nevada
Crystal Park Casino Hotel	Crystal City, Nevada
Ormsby House Hotel Casino	Carson City, Nevada
Eldorado Casino	Henderson, Nevada
Jokers Wild Casino	Henderson, Nevada
Rainbow Casino	Henderson, Nevada
Tom's Sunset Casino	Henderson, Nevada
Cactus Petes and Horseshu Resort & Casino	Jackpot, Nevada
Harvey’s Casino Hotel	Lake Tahoe, Nevada
Aladdin Hotel Casino	Las Vegas, Nevada
Boardwalk Hotel Casino	Las Vegas, Nevada
Boomtown Casino	Las Vegas, Nevada
California Hotel Casino	Las Vegas, Nevada
El Rancho Hotel Casino	Las Vegas, Nevada
Eureka Saloon Casino	Las Vegas, Nevada
Fremont Hotel Casino	Las Vegas, Nevada
Hacienda Casino Hotel	Las Vegas, Nevada
Howard Johnson Hotel Casino	Las Vegas, Nevada
Jockey Club Casino	Las Vegas, Nevada
Lady Luck Casino Hotel	Las Vegas, Nevada
Main Street Station Hotel Casino	Las Vegas, Nevada
Maxim Hotel Casino	Las Vegas, Nevada
MGM Grand	Las Vegas, Nevada
Monte Carlo Casino Hotel	Las Vegas, Nevada
New York, New York Casino Hotel	Las Vegas, Nevada
Palace Station Casino Hotel	Las Vegas, Nevada
Resort at Summerlin	Las Vegas, Nevada
Rio Hotel Casino	Las Vegas, Nevada
Santa Fe Casino Hotel	Las Vegas, Nevada
Silverton Casino	Las Vegas, Nevada
Stardust Resort and Casino	Las Vegas, Nevada
Texas Station Casino Hotel	Las Vegas, Nevada
The Venetian	Las Vegas, Nevada
Peppermill Resort	Mesquite, Nevada
Whiskey Pete's	Prim, Nevada
Boomtown Casino Hotel	Reno, Nevada
Peppermill Casino Hotel	Reno, Nevada
Quality Inn Hotel Casino	Reno, Nevada
Western Village Inn and Casino	Sparks, Nevada
Nevada Crossing	Wendover, Nevada
Peppermill Casino Hotel	Wendover, Nevada
Rainbow Casino	Wendover, Nevada
State Line and Silver Smith Casino Hotels	Wendover, Nevada
Caesars Hotel Casino	Atlantic City, New Jersey
Harrah's Marina Hotel Casino	Atlantic City, New Jersey
Resorts International Hotel Casino	Atlantic City, New Jersey
Sands Hotel Casino	Atlantic City, New Jersey
The Pier at Trump Taj Majal & Trump World’s Fair Casino Site	Atlantic City, New Jersey
Tropicana Hotel Casino	Atlantic City, New Jersey
Sandia Pueblo	Albuquerque, New Mexico
Mohawk Bingo Palace Project	Hogansburg, New York,
Turning Stone Casino and Proposed Hotel	Verona, New York
Sands Hotel Casino	San Juan, Puerto Rico
El San Juan Hotel Casino	San Juan, Puerto Rico
DuPont Plaza Hotel Casino	San Juan, Puerto Rico
Proposed Marriott San Juan Hotel Casino	San Juan, Puerto Rico
Hyatt Dorado Beach	Dorado, Puerto Rico
Hyatt Cerromar Beach	Dorado, Puerto Rico
Proposed
Proposed Enoch Cree Entertainment Complex	Edmonton, Alberta, Canada
Proposed Venetian Macao Resort	Macau, China
Proposed City of Dreams Hotel & Casino	Macau, China
Proposed Double Eagle Casino Hotel	Cripple Creek, Colorado
Proposed Belterra Resort	Vevay, Indiana
Proposed Harrah's New Orleans	New Orleans, Louisiana
Proposed Sunrise Hotel Casino and RV Park	Boulder Highway, Nevada
The Reserve Hotel Casino	Henderson, Nevada
Proposed Aladdin Casino Hotel	Las Vegas, Nevada
Proposed Caribbean Resort	Las Vegas, Nevada
Proposed Pair-A-Dice Casino Resort	Las Vegas, Nevada
±22.00 acres of land at 3120 Las Vegas Boulevard	Las Vegas, Nevada
New Frontier Hotel & Casino Site	Las Vegas, Nevada
Proposed Casino Hotel & RV Project	Laughlin, Nevada
Proposed Borgata Resort and Spa	Atlantic City, New Jersey
Proposed Casino Hotel with Ancillary Facilities	Atlantic City, New Jersey
Proposed ParkPlace Hotel & Casino	Catskills, New York
Proposed Bingo Palace Project	Hogansburg, New York
Proposed Saratoga Gaming Hotel & Entertainment Venue	Saratoga Springs, New York
Proposed Marriott San Juan Hotel Casino	San Juan, Puerto Rico
Casino Component of Proposed Resort	Moscow, Russia
Native American Gaming Projects
Enoch Cree Entertainment Complex	Edmonton, Alberta, Canada
Cliff Castle Casino	Camp Verde, Arizona
River Rock Casino	Geyserville, California
Fantasy Springs Casino and Proposed Hotel	Palm Springs, California
Agua Caliente Casino & Resort	Rancho Mirage, California
Proposed Master Planned Resort Development	Coeur d'Alene, Idaho
Sandia Pueblo	Albuquerque, New Mexico
Proposed ParkPlace Hotel & Casino	Catskills, New York
Proposed Bingo Palace Project	Hogansburg, New York
Turning Stone Casino and Proposed Hotel	Verona, New York
Riverboat and Dockside Gaming Projects
Empress Casino	Joliet, Illinois
Proposed Harrah's Riverboat Casino	Joliet, Illinois
Empress Casino	Hammond, Indiana
Proposed Caesars Riverboat Complex	Harrison County, Indiana
Proposed Hilton-Caesars-Circus Circus Riverboat Casino Complex	Michigan City, Indiana
Lady Luck Casino Hotel	Bettendorf, Iowa
Ameristar Casino Hotel	Council Bluffs, Iowa
Harvey’s Casino Hotel	Council Bluffs, Iowa
Miss Marquette Riverboat Casino	Marquette, Iowa
Casino Rouge	Baton Rouge, Louisiana
Horseshoe Casino	Bossier City, Louisiana
Isle of Capri Casino	Bossier City, Louisiana
Riverboat Casino	Bossier City, Louisiana
Boomtown New Orleans	Harvey, Louisiana
Isle of Capri Casino	Saint Charles, Louisiana
Boomtown Biloxi	Biloxi, Mississippi
Isle of Capri Casino	Biloxi, Mississippi
Treasure Bay Hotel and Casino	Biloxi, Mississippi
Lady Luck Rhythm and Blues Casino Hotel	Lula, Mississippi
Lady Luck Casino Hotel	Natchez, Mississippi
Horseshoe Casino	Tunica, Mississippi
Sam's Town Tunica Dockside Casino and Hotel	Tunica, Mississippi
Ameristar Casino Hotel	Vicksburg, Mississippi
Isle of Capri Casino	Vicksburg, Mississippi
Riverboat Casino	Vicksburg, Mississippi
Ameristar Kansas City	Kansas City, Missouri
Proposed Hilton Riverboat Casinos	Kansas City, Missouri
Sam's Town Riverboat Casino	Kansas City, Missouri
Ameristar St. Charles	St. Charles, Missouri
Riverfront Station	St. Charles, Missouri
Proposed Hilton Riverboat Casino	Corpus Christi, Texas
Racetracks/Racinos
Bluff’s Run	Council Bluffs, Iowa
Saratoga Gaming and Raceway	Saratoga Springs, New York
Pocono Downs Harness Track	Scranton, Pennsylvania
Penn National Thoroughbred Track	Grantville, Pennsylvania
Charles Town Entertainment Complex	Charles Town, West Virginia
International
Existing
Grand Princess Entertainment Center	Jolly Harbor, Antigua
Grand Waldo Hotel and Casino	Macau, China
Sands Casino Hotel	Macau, China
Sands Hotel Casino	San Juan, Puerto Rico
El San Juan Hotel Casino	San Juan, Puerto Rico
DuPont Plaza Hotel Casino	San Juan, Puerto Rico
Hyatt Dorado Beach	Dorado, Puerto Rico
Hyatt Cerromar Beach	Dorado, Puerto Rico
Proposed
Proposed Enoch Cree Entertainment Complex/td>	Edmonton, Alberta, Canada
Proposed City of Dreams Hotel & Casino	Macau, China
Proposed Venetian Macao Resort	Macau, China
Proposed Marriott San Juan Hotel Casino	San Juan, Puerto Rico
Casino Component of Proposed Resort	Moscow, Russia