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August 30, 2005

Devastation Strikes MS, AL Coasts; Tragic Loss of Life; Casinos Damaged (Updated)

Posted by Hunter

We're following Hurricane Katrina that pummeled the Gulf Coast through Monday.

For the most up to date info, check the Sun Herald.

Our hearts go out to the families in the affected communities.

As of now, MGM MIRAGE does not have information on the state of Beau Rivage. Building designs incorporated features to deal with massive onslaughts of water. It's not clear if these were helpful.

Reports indicate that the recently completed Hard Rock casino has been substantially damaged and will have to be rebuilt.

UPDATED: Beau Rivage still stands, though it has been significantly damaged. Many other Gulf Coast casinos were completely destroyed.

More after the jump...

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Statement From Terry Lanni, Chairman and CEO, MGM MIRAGE (NYSE: MGM), Regarding the Impact of Hurricane Katrina on Beau Rivage Resort & Casino, Biloxi

LAS VEGAS, Aug. 30 /PRNewswire-FirstCall/ -- "The significant damage sustained by Beau Rivage is part of a substantially larger story of devastation in Gulfport and Biloxi. We must allow local, state and federal authorities to do their work and ensure the safety of the overall area.

"Clearly, re-establishing basic services and a sense of normalcy throughout the region must take precedence over concerns for this interruption to our business. This process will, in all likelihood, take months.

"Robert Baldwin, President & CEO of Mirage Resorts, is in the process of establishing an assessment team that will evaluate damage at Beau Rivage. Under his direction, that team will begin its work as soon as authorities deem the area safe. It is likely this team's work will take several weeks to complete. Once our damage assessment process is complete, we can put in place an appropriate rebuilding plan.

"Our immediate focus is on the well-being of our employees and their families. First and foremost, we hope to soon establish a means of communicating with all Beau Rivage employees. We will issue updates through the media as progress allows.

"To our employees: Your family, your homes and your community are the priority right now. The best initial course of action for you to aid in the recovery of the area is to closely follow the advice of our local, state and federal authorities as they establish an orderly recovery process.

"Our thoughts and prayers are with all of those impacted by Hurricane Katrina."

Categories: MGM Resorts International


Comments

Read archived comments (15 so far)
August 30, 2005 2:05 PM Posted by detroit1051

Harrah's Gulfport casino was pushed across the road.
Loveman said it is scrap and will be cut up and hauled away. He
said HET will ask approval to operate a temporary casino.

NO is built high and is in good shape, but obviously the rest of the city is not. Note below, NO will open by SEPTEMBER 30.


The CNBC piece said Beau Rivage did not suffer significant damage
and gave credit to Steve Wynn for building it the way MIR did (at a high cost.) A little satisfaction for Steve after all the criticism?

Loveman was blunt in his criticism of having casinos forced to operate as boats and expects MS to reconsider.


HET has already updated its website:

>>To ensure the safety of team members and customers, Harrah's New
Orleans, Grand Casino Biloxi and Grand Casino Gulfport are now
closed. We will reopen as soon as it is safe. At this time, we
anticipate Harrah's New Orleans will open no sooner than Friday,
September 30, 2005. Our Grand Casino locations in Gulfport and
Biloxi are closed indefinitely.

Our casinos in Bossier, Lake Charles and Tunica have joined forces
to provide shelter as needed. We are also preparing to provide
assistance to our team members, their families and other residents
in the affected communities once the storm passes.

For further assistance, please call 1-800-HARRAHS for Harrah's New
Orleans. For the Grand Casino Biloxi and Grand Casino Gulfport,
please call 1-800-648-6880.

August 30, 2005 3:33 PM Posted by Mike C

An AP report going around (link: http://tinyurl.com/cdcps) says that Beau Rivage "took severe damage." This may or may not be any change from previous reports from an emergency response spokesperson that the flooding had reached the second floor (link: http://tinyurl.com/dtkl7)

I'm not sure what they mean by that, if they mean the second floor of the hotel tower, then that's quite a lot of swamp.

August 30, 2005 8:23 PM Posted by Hunter

I saw extensive aerial shots of Beau Rivage on CNN. The dock/marina area looks totally trashed, along with the pool and some of the low-rises on the Gulf side. The high-rise looks pretty much fine - they said a single window was broken.

August 30, 2005 8:52 PM Posted by tswennes

Updates indicate the first two floors of Beau Rivage where flooded but structurally, the tower should be okay. However, it will be months before the property reopens. Harrahs' NO, like all of New Orleans, is slowly filling with water. The situation there is getting exponentially worst by the minute, so 9/30 opening date quoted by HET is absurd.

IGT stock was up today, so I guess Wall St. sees this as the start of a strong "replacement cycle" in gaming equipment.

August 30, 2005 8:56 PM Posted by Hunter

One slightly mitigating detail for MGM MIRAGE - it's my understanding Beau Rivage was due to renovate all guest room floors in 2006.

August 31, 2005 11:27 AM Posted by Jean Larson

I recently visited the Imperial Palace in April of 2005. Wa very impressed with the casino and hotel and have intentions of visiting again. ajust wondering if they any extensive damages from the HURRICANE KATRINA. Thank you.

August 31, 2005 7:43 PM Posted by Valita

We were supposed to be at the Imperial Palace last weekend, but changed plans due to the hurricane. I have yet to see any word regarding any damage the Imperial may have sustained. Does anyone know? My prayers go out for all those affected by this terrible trajedy.

September 2, 2005 8:47 AM Posted by Hunter

More info for MGM employees here:

http://daily-gambling-news.blogspot.com/2005/09/mgm-mirage-announces-programs-to-ease.html

September 2, 2005 1:06 PM Posted by detroit1051

Harrah's wants to open a temporary casino in Biloxi soon according to the Las Vegas Sun:
http://www.lasvegassun.com/sunbin/stories/gaming/2005/sep/02/519295668.html

September 3, 2005 11:59 AM Posted by Hunter

Here's an aerial shot of Beau Rivage:

http://ngs.woc.noaa.gov/storms/katrina/24332305.jpg

September 4, 2005 5:02 PM Posted by detroit1051

Terry Lanni, MGM Mirage CEO, has posted a letter to employees on the Beau Rivage website:
http://www.beaurivage.com/

September 4, 2005 6:55 PM Posted by detroit1051

Good summary of all the Gulf gamers. You've got to give credit to Steve for building the Beau so well. It's in better shape than I first thought, but this is a tragedy for everyone in the area as well as the country.


http://www.lvbusinesspress.com/articles/2005/09/02/news/news01.txt

September 8, 2005 9:23 AM Posted by detroit1051

MGM Mirage executives were in Biloxi Thuesday and issued a release today stating they plan to rebuild Beau Rivage quickly.
http://biz.yahoo.com/prnews/050908/lath048.html?.v=25

September 8, 2005 11:36 AM Posted by Hunter

Some more detail in the Sun:

http://www.lasvegassun.com/sunbin/stories/gaming/2005/sep/08/519324303.html

September 11, 2005 12:56 PM Posted by Cathy & Jim

Hi Jim and I have considered Biloxi our second home.
We were going to stay at the IP the end of Ausgust.
Have yet to see any damage reporton the IP does anyone have any information. We are anxious

Jim & Cathy