Tag: news

Six Flags & Cedar Fair Merge Under Insane $8B Deal.

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A few months ago, we looked at and discussed the rocky future Six Flags had with new leadership coming in and stirring up turmoil company-wide. Since then, there have been massive rumors circulating regarding the future of Six Flags. There was, at one point, talk about Six Flags selling off all their real estate to a real estate trust company while they kept operating the parks. Ultimately, this was pure speculation and rumors that never occurred.

However, massive news just dropped in the theme park community regarding Six Flags and its competitor Cedar Fair. Under a new massive $8B deal, the two companies will merge to become one massive joint company. The combined company, which will operate under the name Six Flags, will boast 27 amusement parks, 15 water parks and nine resort properties in the U.S., Canada and Mexico.

As the deal was announced early morning on Thursday, November 2nd, Cedar Fair CEO Richard Zimmerman gave the following remarks:  

“Our merger with Six Flags will bring together two of North America’s iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance”. 

Under the new leadership structure, Zimmerman will be president and CEO of the combined company. Meanwhile, Selim Bassoul, President and CEO of Six Flags, will become executive chairman.

While I am personally very skeptical about Selim Bassoul and the Six Flags leadership, I am very glad that Cedar Fair is taking control of the leadership while Six Flags is the brand and providing support to Cedar Fair. 

When you compare the two companies, Cedar Fair is the better and stronger company out of the two. Cedar Fair focuses a lot more on quality compared to Six Flags where the emphasis is on quantity. I think Cedar Fair could definitely improve the Six Flags parks by a lot, with their higher standards, attention to detail, heavy theming and minimalist in park advertising approach.

One major benefit that would come with this merger, is both operators will have access to each other’s intellectual property brands such as DC Comics, Looney Tunes and Peanuts. One thing Cedar Fair lacks is themed attractions centered around a character or movie. By having access to the DC brand, it would allow Cedar Fair to step up and compete on a themed attraction level with the Marvel superhero rides at Disneyland and Universal Studios Orlando.

On the flip side, Six Flags struggles (in my opinion at least) with theming and creating attractions for children and a younger audience. Cedar Fair has the Peanuts brand and with it, they do a very good job creating some unique and well organized kids areas. I feel like Six Flags often overlooks or forgets about these kinds of areas/lands so with Cedar Fair bringing this to the table, it would be a huge win for Six Flags. 

There is a huge push and hope from the theme park fan community that the newly formed company will create a new season pass program that would allow pass holders to access all 27 parks across the portfolio. I think this would be a smart idea since it would allow guests to experience the best that both operators have to offer. For example one could enjoy Cedar Fair’s top parks in Southern California (Knott’s), Ohio (Cedar Point and Kings Island) and also enjoy Six Flags’ top parks in Los Angeles (Magic Mountain), Chicago (Great America) and New Jersey (Great Adventure). 

As it stands now, Cedar Fair-Six Flags will only have two overlapping areas in both combined portfolios in Southern California and the San Francisco Bay Area. This overlap will not remain for long however, as Cedar Fair has sold California’s Great America and the park will cease operating within a few years. After this, it would only have Six Flags Discovery Kingdom in the Bay Area market.

When asked about if there would be any potential closures or sales to any of the joint parks, Cedar Fair CEO Richard Zimmerman said on a call with investors that there are no plans to close any of the parks following the merger.

“These are irreplaceable assets. How do you grow if you shrink your portfolio?”

There are still so many questions and details to work out with this merger. I think only time will tell how well this merger goes for both operators and what will become of it. Keep in mind this was only announced on Thursday, November 2nd so there is not much additional information available. It is definitely going to be interesting to watch this merger further progress and unfold. 

So, what do you think of this insane merger? Let us know in the comments below and be on the lookout for more YouTube videos and blog content coming your way soon!

Farewell Mirage Las Vegas. Hello Hard Rock LV.

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Very interesting news has been unfolding in Las Vegas these past few months as Hard Rock International purchased The Mirage from MGM Resorts International for a whopping $1.08 Billion! While it is sad to see such an iconic and revolutionary Vegas resort go, the Hard Rock plans are just stunning. Join us today as we venture into the history of this once beloved resort and what Hard Rock has in store for Vegas.

History of The Mirage:

The Mirage was the vision of Steve Wynn who was a visionary that forever changed the landscape of Las Vegas and Atlantic City, NJ. Wynn early in his career oversaw the construction and operation of several notable Las Vegas and Atlantic City hotels, including the Golden Nugget, the Golden Nugget Atlantic City, The Mirage, Treasure Island, the Bellagio, and Beau Rivage in Mississippi, and he played a pivotal role in the resurgence and expansion of the Las Vegas Strip in the 1990s.

The site where The Mirage site was previously home to a motel during the 1950s then the motel was torn down to become the Polynesian-themed Castaways Hotel and Casino. Wynn acquired the property 1987 from its owner Howard Hughes. After the purchase, Wynn was quick to demolish Castaways and begin construction on the Mirage. 

At first, the resort was announced under the name Golden Nugget after the existing Golden Nugget property he owned on Downtown Fremont Street at the time. After careful consideration, he later changed the name from Golden Nugget to “The Mirage” and purchased the name from the La Mirage Hotel and Casino and the Mirage Motel, which was renamed to the Glass Pool Inn and Key Largo after the purchase for $250,000.

The Mirage officially opened its doors on November 22, 1989. The Mirage remained under Wynn’s ownership until 2000, when his company was acquired by MGM Grand.

Mirage’s Legacy:

The Mirage, being one of the first heavily themed hotel and casinos in the Las Vegas Valley since Caesars Palace in 1979, began a period in Las Vegas’s history known as the “family-friendly era” where previously mob-run hotels and casinos were replaced by heavily themed resorts that catered mostly to families and children. This included the Excalibur in 1990, Treasure Island, MGM Grand, and Luxor in 1993, New York-New York in 1997, the Bellagio, and the Mandalay Bay, Venetian, and Paris in 1999.

Original Hard Rock Hotel & Casino:

Prior to Hard Rock International purchasing The Mirage, the company had another resort on the strip where the current Virgin Hotels Las Vegas sits today. The original Hard Rock Hotel & Casino was the first ever Hard Rock hotel ever to be built in the country. As of today, there are about 24 hotels not including 17 hotels under development and construction. 

The Las Vegas location was a trend setter and was known for its party scene, vast nightlife, entertainment and famous performances. LV opened its doors in March of 1995 and over the years expanded the property to include multiple hotel towers and additional expansions to accommodate the vast nightlife scene.

However in 2018, this all changed as in early January of that year, rumors floated around that Sir Richard Branson was going to be buying the Hard Rock hotel-casino and sure enough on March 30 an official announcement was made. This ended Hard Rock’s Las Vegas Hotel presence until 2022 when Hard Rock purchased The Mirage from MGM Resorts International for a whopping $1.08 Billion!

Hard Rock Hotel & Casino’s Planned Return:

So what exactly does Hard Rock have planned for their big Las Vegas return? Hard Rock is planning on demolishing the iconic Mirage Volcano to make way for a massive 800 – 1,000 room guitar shaped hotel tower. The guitar-shaped hotel will also include a casino with 200 slots and 12 table games.

Specific details have been very sparace and difficult to come by. As of now, there is no definitive decision as to whether the property is going to be closed during construction, partially open, etc.  

However, according to several sources, Hard Rock is planning a renovation and expansion of event and meeting space at the Mirage, a renovation of villas and the private gaming room, plus an “enhanced pool experience.” The planned renovations will also add 80,000 square feet of casino space and 83,000 square feet of convention space to the former Mirage. That’s accompanied by an addition of 1,164 slot machines and 161 table games. Renovations are expected to add nearly 3,000 theater seats, plus 596 hotel rooms and three food and beverage outlets to the property. 

No additional news, details or information have been shared at this time nor is there a specific timeline for the project. Currently as Hard Rock finalizes plans, seeks approvals and prepares for construction, The Mirage name will remain. Under the terms of the purchase agreement, according to the Dec. 2021 release, MGM Resorts will retain The Mirage name and brand, licensing it to Hard Rock royalty-free for a maximum period of three years while it finalizes its plans to rebrand the property.

There are also no plans or details announced regarding The Beatles LOVE by Cirque du Soleil show that has been a Mirage staple for many years. It is highly likely this show could remain as it fits perfectly within the Hard Rock theming.

Overall, this is definitely a wise business decision and investment as there are no guitar shaped buildings on the strip which will help make the property stand out. Many of the resorts on the strip look nearly identical with the exception of the heavily themed resorts, or well established resorts. Additionally, there is no other existing guitar shaped hotel except for Hard Rock’s Hollywood, Florida casino resort. While it will definitely be sad to see some classic strip icons go, in the long run it will definitely be worth it as new icons are being created.

One Last Look Inside The Mirage:

Before we say farewell to The Mirage, let’s take one last look inside the famous property.

Genius Business Decision?

Wow! What a gorgeous and well kept property. When MGM Resorts was asked for the reasoning behind the sale they stated it was to shift focus on their existing properties in Las Vegas and build on those experiences. Additionally, shortly after the sale, we saw MGM Resorts buy the famous and most popular strip resort Cosmopolitan for $1.6 billion. MGM is also allocating capital in preparation for the billion dollar investment for a new casino resort located in Osaka, Japan.

Overall I think this was a smart business decision by MGM Resorts since it allowed them to purchase the Cosmopolitan while allowing them to allocate funds for future projects, expansions and new construction. I personally can not wait to see the new Hard Rock property and the guitar hotel tower rise above the Vegas strip. 

What are your thoughts on The Mirage and upcoming changes to the resort? Leave a comment below and share your thoughts!

Disney News Roundup – Sale Rumors, New CEO & More.

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If you have been following Disney lately in the news, there has been a lot of uproar and public outlash. Besides all the chaos, there also has been some interesting moves and progress Disney has been making as well. Join us today as we recap all the latest Disney news and give our thoughts on each topic.

Chapek Out, Iger In Again:

Bob Iger (left) takes over again for former CEO Bob Chapek (right) after only two years.

Under Chapek, The Walt Disney Company faced a number of public controversies and poor decisions. The CEO faced criticism for the company’s stance on Florida’s “Don’t Say Gay” law following reports that the company had funded anti-LGBTQ+ legislators behind the bill, casting doubt on Disney’s pro-LGBTQ+ image. Disney’s position was called out by audiences, several creative talents who’d worked with Disney, charities, and advocacy groups, who further critiqued Chapek’s initial refusal to address the legislation.

Chapek also back when the parks were shutting down for Covid, wanted to lay off a large percentage of staff prior to employment acts and the CARES act being passed which would have helped those laid off with the financial pressures of temporarily losing their jobs. This just goes to show the true colors of Chapek and how all he cared about was money and cutting costs. 

Chapek also proved all he cared about was money when he spiked ticket prices so high while skimping back on products and services offered in the parks. Prices were so high, it made families not be able to afford a Disney vacation. It makes no sense why you would purposely turn away your target market and force them to either not visit Disney or go to you competitors. 

In addition to the various public relations missteps, political controversies, and unpopular business decisions, Chapek contributed to very poor earnings causing Disney shares to drop 41.4% overall for the year.

I seriously hope Disney can get their acts together and can get back on track. It’s a real shame they have fallen so far out of touch from their roots and loyal fans these past few years.

Disney Being Sold To Apple?

There’s been many rumors going around that Disney was going to be sold to Apple then Apple would license the Disney brand to Disney. If you ask me, it doesn’t make much sense to sell a major theme park operator that has a stranglehold on the market to a technology company with parks experience. While Disney leadership keeps denying these rumors, we keep seeing more and more evidence mounting that this could be true. Only time will tell how the company recovers.

Disney Acquires World’s Largest Cruise Ship:

Finally some good news! Recently, Disney purchased the world’s largest cruise ship weighing in at a whopping 208,000-gross-tons! Not only is it the largest, it is also the first cruise in the entire cruise ship industry to be fueled by green methanol, one of the lowest emission fuels available. According to early estimates, Disney Cruise Line expects the passenger capacity to be approximately 6,000 with around 2,300 crew members. 

With the acquisition of this new ship, it will allow DCL to tap into newer markets and destinations it has never sailed to before. Disney will take over construction and finish the project after the ship’s former owner and operator filed for chapter 11 bankruptcy protection just weeks before.

Splash Mountain To Permanently Close:

Yet another Disney classic is set shutter on Jan. 23, 2023 to make way for a newly rethemed ride. Tiana’s Bayou Adventure will be taking Splash Mountains place at both Walt Disney World and Disneyland. The ride is heavily inspired by the culture of New Orleans and the Walt Disney Animation Studios film, “The Princess and the Frog.”

Disney’s “Government” Is No More?

Back when the Walt Disney World resort was being constructed, the land it sat on was nothing more than swamps. Disney had to build all the infrastructure and necessary projects to make the land habitable for theme park and hotel use. In order to do this, Reedy Creek was established in 1967. Reedy Creek is the name for the Reedy Creek Improvement District, a special purpose district that gives The Walt Disney Company governmental control over the land in and around its central Florida theme parks. The district sits southwest of Orlando. Today, the Reedy Creek special district encompasses about 25,000 acres in Orange and Osceola counties, including four theme parks, two water parks, one sports complex, 175 lane miles of roadway, 67 miles of waterway, and the cities of Bay Lake and Lake Buena Vista.

With recent leadership turmoil at Disney and controversial political practices in Florida, Disney’s special governing body may soon be dissolved. The proposed bill declares that any special district created before November 1968 will be dissolved on June 1, 2023. The dissolution of the special district would mean that Orange and Osceola counties take on the assets and liabilities of Reedy Creek. That could lead to higher taxes for those residents to pay off Reedy Creek’s debts and take over the care of roads, policing, fire protection, waste management and more.

Overall, I can honestly understand both sides to the idea of removing Disney’s governing body. If Universal Studios, Busch Gardens, Sea World and countless other Florida based parks don’t have any special governing bodies then why should Disney? After all, does it just give Disney more power and cause there to be an unfair advantage given to Disney? 

However, on the flip side, we can clearly see why this special body is needed and why it would be a bad idea to abolish it. Obviously, there needs to be an authority to oversee all the infrastructure, safety and responsibilities of the area. If this body is totally abolished all the costs and debt will need to be taken over. One possible fair solution would be if the state of Florida took over the body and made it a state run agency this way everything is looked over and it takes away any special advantages Disney is given over the other parks in the area.

Choice Hotels Acquires Radisson Hotel Group Americas – Thoughts & Reactions

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Very big news just came out of the hotel industry recently and I have to admit the news came as a bit of a surprise. Join us today as we discover the headlines, break down the news and give our thoughts on it.

The Big News:

In this very shocking news, Choice Hotels announced it was acquiring Radisson Hotel Group Americas for a sum of $675M. Currently, Choice Hotels has the following brands in its current portfolio prior to this transaction:

The deal, once closed, includes nine brands, 624 hotels and over 68,000 rooms! 

For those unfamiliar with the Radisson brand or Radisson Hotel Group (RHG), it emcompasses all franchised, operations and branding of the Radisson Hotels throughout the U.S., Canada, South America as well as the Caribbean. RHG also includes 10 Radisson Blu hotels, 130 Radisson hotels, nine Radisson Individuals, one Park Plaza hotel, four Radisson Red hotels, 453 Country Inn & Suites by Radisson and 17 Park Inn by Radisson hotels, as well as the Radisson Inn & Suites and Radisson Collection brands.

Thoughts & Reactions:

Overall, this is definitely a bold move for Choice Hotels. Earlier in the year a few rumors were going around saying Choice was looking to drop some serious cash to expand into the luxury and higher tiered hotel market. I think one primary reason for doing this merger is smart, is by doing so you can compete with Wyndham Hotels & Resorts. Wyndham, like Choice, has economy brands, extended stay but Choice lacked many things that Wyndham had. Those being luxury brands, upper-mid scale brands and resorts. Can they compete with Wyndham and overall be at the same level or better? Only time can tell.

With this merger to close in 2022, there are still many loose ends and questions left to be answered. Here are some of the top few questions and concerns that come to mind:

With Radisson under Choice Hotels, will standards for Radisson drop? Get better? Or stay the same?

Personally, I’m not sure how this will turn out for Radisson and their nine brands. While I feel like this a good move since they will expand and get more exposure, I feel like with how Choice operates some of their brands, I can’t help but feel standards may slip. Then again, with acquiring nine strong brands and a few luxury brands in the mix, maybe this will make Choice stronger and in turn help them. Only time will tell how this plays out.

Will the Radisson Rewards/Loyalty program be combined with Choice Privileges?

Radisson Rewards is not as well known or as large as Choice Privileges. With that being said, I can definitely see one of two things happening. Choice takes Radisson Rewards and merges it with Choice Privileges to make one cohesive rewards system that is easily utilized across all brands. The other thing I can see is Radisson Rewards stays around and is overhauled and works together with Choice. They would promote both together, be able to transfer points between the two and redeem member only offers for both. While that may seem like a lot of work, I think that makes the most sense. (And we’ll see why with our next question).  

With the European operations still under Radisson and not being sold, will this cause confusion and inconsistencies from the American operations?

Anytime you have split operations across the globe, it’s always a challenge logistically keeping supply chains, standards, operations and finances on track. However in this case, this transaction makes it interesting and creates a tough challenge. If Choice makes changes to Radisson, they only have control over the American/North American division. I think there are definitely going to be some tough challenges that both Choice and the European/Asian division of Radisson will need to figure out. I find it very odd how you would sell off half of your brand then keep the other half. It’s just so hard to wrap your head around.

I definitely think this merger took a lot of people by surprise. As mentioned above, we did hear rumors earlier in the year about Choice looking to buy but, those rumors only mentioned purchasing one or two induvial brands not an entire hotel company. I honestly did not expect that either. Regardless I think over the next few months and years, we’ll have to see how this plays out for both sides. What do you think about the Choice Hotels and Radisson Hotel Group merger?