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					HIGHLY CONFIDENTIAL: TO BE SEEN BY TEAM MEMBERS ONLY




PARIS LAS VEGAS
                   www.parislasvegas.com
PARIS LAS VEGAS

J EFF B AB INS KI
General Manager
Boo mtown Casino- Reno
Verdi, Nevada

JOSEPH DUPUIS
Video Systems Gaming Manager
Lucky Eag le Casino
Rochester, Washington

CHRISTOPHER WOOD
It Serv ices Manager
Great Blue Heron Charity Casino
Port Perry, Ontario
Canada

EDMOND KWOK HUNG YU
Financial Controller - City Club
Galaxy Entertain ment Group
Macau, China

CAROLINE COLEMAN
Duty Manager
Holland Casino Hoofdsorp
Hoofdorp, The Netherlands

MARK MADAMBA
Director, Af Gaming - Pacific
Usaf Serv ices Agency
Japan

SERGE IP VAI CHING
Casino Management Trainee
Torarica Hotel and Casino
Paramaribo, Suriname


jbabinski@att.net
joseph.dupuis@luckyeagle.com
chris.wood@gbhcasino.com
eyu@galaxyentertain ment.co m
cejcoleman@g mail.co m
mark.madamba@yokota.af.mil
koelinees@yahoo.com
 SPECIFIC DIRECTIVES AND CHALLENGES FOR PARIS LAS VEGAS FOR
                           PHASE 1

NOTE: THE FOLLOWING INSTRUCTIONS WILL REQUIRE YOU TO HYPOTHESIZE
HOW YOUR CASINO PROPERTY HAS CHANGED WITH THE DETERIORATING
CIRCUMSTANCES CONFRONTING THE NATIONAL ECONOMY, LAS VEGAS, AND
THE PARENT COMPANY FOR YOUR CASINO. ACCURACY IS NOT AS IMPORTANT
AS COMING TO QUICK AGREEMENT AMONG TEAM MEMBERS AS TO “WHAT
IT WAS LIKE” BEFORE THE CHANGES IN THE ECONOMY, DESCRIBING “WHAT
HAS CHANGED FROM THEN TO NOW,” AND THEN SUGGESTING GUIDELINES
FOR THE PARTICULAR AREA FOR THE NEXT NINE MONTHS UNDER THE NEW
TEAM. FEEL FREE TO USE YOUR IMAGINATIONS AND COLLECTIVE
EXPERIENCE THROUGHOUT.



In September 1999, Paris Las Vegas opened as one of five mega-casinos built on the Las Vegas
Strip at the end of the millennium. Heavily themed around the City of Paris, the property was
built by Park Place Entertainment adjacent to their Bally’s Hotel and Casino. At a budget of $800
million, Paris was the “least expensive” of the five casinos that represented the third major wave
of casino-hotel entertainment centers that had hit the Strip since 1989.

Paris Las Vegas was a strong performer from the outset, well located in the Center of the Strip
across from the fountains of Bellagio. In 2000, Park Place Entertainment culminated its
acquisition of Caesars Entertainment and in 2001, the corporate name was changed to Caesars
Entertainment. In 2005, Harrah’s Entertainment completed the $9.3 billion acquisition of Caesars
Entertainment, which gave them numerous casinos on the Las Vegas Strip, including Paris.


Paris Las Vegas continued to be a strong performer in the second half of the decade. However,
problems arose for all the Harrah’s operations following the Leveraged Buy-Out that Harrah’s
culminated in January 2008. That deal was begun in fall 2006 when two venture capital
companies, Apollo and Texas Pacific, offered $15 billion, or $80 per share, to take Harrah’s
private. The final negotiated price was around $90 per share, or $17 billion. By the time the
LBO closed in January 2008, the economic conditions of the country had changed dramatically,
and the performance of Las Vegas casinos in particular had already begun to erode. With a total
debt exceeding $24 billion, Harrah’s corporate management began an aggressive cost cutting
survival strategy. By mid-2008, virtually every major capital and development project that
Harrah’s had been pursuing was either cancelled or put on hold. As of early fall 2008, all capital
budgets for all of Harrah’s operating casinos were put on hold; that did not end until June 2010.

Thus, the challenge for Paris was the disruption of an otherwise smooth-running operation.
Typically slot machines are on a five year replacement cycle. Paris has had to put that program
on hold since August 2008. The same is true with refurbished rooms, which Paris had been
remodeling on an eight year cycle. Other areas of deferred maintenance have also come into
play. In general, corporate management directed operations to cut costs as dramatically as
possible, while preserving service levels as close to the traditional standard as possible.

It is in this context that the new Management Team was brought on board. The previous Paris
management team was recruited en masse to run a new casino in Kansas, so the new Team has
been brought in to develop its own approach. Harrah’s new operating style provides considerable
autonomy to management teams, and their evaluation is all based on performance measures. The
company’s objective is to increase cash flows so that the company will be in a position to service
their financial obligations as their long term debt begins to come to maturity in 2012 an onward.

As a Team, your PHASE 1 tasks are:

            1. Identify at least ten key metrics (related to performance of casino games,
               different departments, customer behavior, perceived customer service levels, cost
               containment, employee morale, etc.) that will allow you to monitor the
               performance of this operation over time. These should be linked to overall
               objectives for managing the property, and should be among the most important
               for you to make the best strategic decisions relative to your overall objectives
               into the future. (If you list more than 10, identify your top ten.)
            2. As the new Management Team, list (in bullet points) what you believe might
               have been the basic policies toward employment that prevailed at your property
               from early 2008 to the present. Use your imagination, prior knowledge of the
               casino and/or company, and collective experience regarding your own casino
               or other casinos with which you are familiar to identify some basics of a Human
               Resources Strategy that may have prevailed over this period. Again using bullet
               points, note how this strategy may have been modified since early 2008. Given
               this as a base, and in light of the current competitive and economic conditions in
               Las Vegas, as well as the company’s broad directives, put forward an HR
               strategy that will guide your management team over the next nine months or so.
               This could include consideration of benchmarks, benefits, incentive programs for
               employees and hosts, and performance evaluation standards. (Keep in mind that
               you do have some unions to work with, especially the Culinary.) Prepare an
               internal memorandum of one page or less that will be circulated among your
               employees that clarifies this strategy. Note separately in one or two sentences
               what you hope to achieve with this memo.
            3. Briefly identify what you believe has been the target market for this casino under
               the prior management team. Based on the description of events above, use your
               imagination and collective experience to briefly summarize a marketing
               strategy that may have been in place at the property between early 2008 and the
               present. (Use bullet points.) Note how this marketing strategy might have been
               affected by cost cutting and the broader challenges confronting the Las Vegas
               gaming industry. Then recommend a marketing strategy that will drive the
               property forward over the next nine months. In particular, identify your target
               market(s) and try to include clever and cost-effective ways of increasing market
               share and growing revenues without overly taxing operating budgets.
               Summarize this marketing strategy in one or two paragraphs.
            4. A freeze has been in place since August 2008 for any capital outlays beyond
               necessary replacement of non-functioning or damaged equipment. As a result,
               there is deferred maintenance that has built up on a variety of assets, including
                   carpets, walls (in need of painting), furniture and fixtures, software systems, and
                   gaming equipment. For the next nine months, corporate has indicated you will
                   have $15 million that can be allocated to capital outlay needs. Drawing from
                   your imagination and collective experience , discuss a strategy that you will use
                   in allocating this amount to various areas within the facility.
                5. Write a one paragraph position strategy1 that explains how you might want the
                   property to be perceived by the public. This statement should explain who your
                   target audience is, your thematic premise, your service promise, your pricing
                   standards, and a statement of your quality objectives.

Try to be as specific as you are able in addressing the above issues, and keep in mind the budget
constraints and performance challenges for the property at the present time and over the next nine
months.

A written response to the above inquiries is due no later than 10 am Saturday, November 7.
The response should be no more than five (5) type-written pages (Times New Roman, 10 point,
single spaced.) It must be e-mailed to the following address: othersideofthestrip@gmail.com .
Once a team has submitted its PHASE 1 report, the team members will receive their PHASE 2
instructions. Note that PHASE 1 submissions will be competitively graded and the results will be
reflected in the Casino Resort’s future performance indicators. If the Team wants their PHASE 2
instructions before Saturday morning, they need to submit the PHASE 1 report no later than 9 pm
Friday, November 6.




1
  Generic example of a Position Strategy: Our casino will target, attract and host low premium and qualified high grind gamblers by
providing very professional, yet “small town” style, guest service from highly-trained and motivated team members in a Western-
themed, very exciting, extremely clean and secure casino/hotel environment that features very good quality food and entertainment
products at low to moderate prices. We will be committed to make the guest feel lucky for having chosen our casino!
DESCRIPTION

The Paris Las Vegas transports visitors to the City of Light. Paris Las Vegas captures all the
details of Paris, right down to the cobblestone sidewalks and half-scale replica of the Eiffel Tower
and Arc de Triomphe. Wrought iron street lamps line the 85,000 square foot casino with the legs
of the Eiffel Tower sit in the middle of 1,700 slots and 90 table games. Guests can dine at the
Eiffel Tower Restaurant, but beware, it's by reservation only. Diners can watch the world pass by
at Mon Ami Gabi, a fine French restaurant where the most popular tables are the ones outside
facing The Strip. Dining isn't just limited to the French, Asian restaurant Ah Sin is host to many
dishes from the Pacific Rim. If you've just hit the jackpot on the casino floor, try the $777 Kobe
beef and Maine lobster at Le Burger Brasserie. Famous pastry chef Gaston Lenôtre opened a
branch of his renowned pastry shop on the cobblestone-lined Le Boulevard, a street filled with
intimate shops and restaurants, all underneath a blue cloud-filled celling. Strolling along Le
Boulevard don't be surprised to see an extremely lifelike bronze statue move, that's because it's a
real person The City of Light doesn't go dark after dark. Anthony Cools - The Uncensored
Hypnotist checks inhibitions at the door and pushes the limits of the audiences mind and body.
Sitting right above the restaurant is nightclub Risqué, Paris' ultra lounge that is as fun as it is
fantastic.

Attractions
Eiffel Tower

Don’t miss the view from the single most romantic spot in all of Vegas – 460 feet above the heart
of the Strip atop the Eiffel Tower Experience.

A signature of the Las Vegas skyline, the replica Eiffel Tower at Paris Las Vegas is a half-scale
exact reproduction of one of Europe's most famous landmarks.

You’ll take a breathless elevator ride ride to the top, where a breathtaking, panoramic view of the
valley awaits. Along the way, an experienced elevator guide will point out can't-miss Vegas
landmarks.

Spa by Mandara inside Paris Las Vegas

Mandara Spa is one of the largest and fastest growing luxury hotel and resort spa treatment and
management companies in the world providing a relaxing and rejuvenating environment, with a
wide variety of therapeutic and exotic skin and body spa treatments, products and packages to
choose from.

Amenities
Sports Book            Seats 265. 232 televisions.
Poker Room             8 tables of Texas Hold 'Em and 7-card stud
Health club            Paris Spa by Mandara

Spa                    Spa by Mandara
Shopping Center        Le Boulevard
Wedding Chapel                Wedding services
Convention Facilities         More than 140,000 square feet
Business Center

Hotel Room Internet           Call for pricing.
Casino Wireless Internet
Wheelchair Accessible Rooms
RV Park
Child Care

Pets Allowed
Self Parking Garage
Valet Parking                 Free.
Airport Shuttle               $5.50 per person
Remote Baggage Check-in

On Site Catering              Call for details.
Movie Theater
Arcade
Bowling Alley
Non-Smoking Gaming

Players Club                  Harrah's Total Rewards program
Buffet                        Le Village Buffet
Arena


Nightclub & Bars
Risqué de Paris

While it’s quite a trek from self-parking through the faux-cobblestoned streets of the Paris casino
to Risqué nightclub, once you reach the lavish interior of this second-story nightclub, you’ll be
glad you made it. For a taste of the Vegas Latin scene, go on Friday night and wear your dancing
shoes.

Dining

Ah Sin
du Parc
Eiffel Tower Restaurant
JJ's Boulangerie
La Crepe rie
Le Burger Brasserie

Le Cafe Ile St. Louis
Le Provencal
Les Artistes Steakhouse
Le Village Buffet
    Mon Ami Gabi



    Gaming Machines - 2,400 total

           Anchor's Wheel of Go ld - $.25, 16 mach ines - $0.25 to $0.75 bets
           CDS Top Dog
           Dollar Slots, 240 mach ines
           Five Dollar Slots, 31 machines
           Half Dollar Slots, 4 machines
           Hundred Dollar Slots, 17 machines
           IGT - Megabucks, 4 machines
           Multi-denomination Slots, 1,308 machines
           Nickel Slots, 85 mach ines
           Other Slots, 62 machines
           Penny Slots, 340 machines
           Quarter Slots, 290 machines
           Twenty Five Dollar Slots, 19 machines

    Table and Poker Games - 173 total

           3 Card Poker, 10 tables
           Asia Poker
           Baccarat, 9 tables
           Blackjack, 67 tables
           Caribbean Stud Poker, 2 tables
           Craps, 10 tables
           Let it Ride, 4 tables
           Mini-Baccarat, 5 tables
           Other Games, 16 tables
           Pai Gow Poker, 11 tables
           Pai Gow Tiles, 1 table
           Poker, 18 tables
           Roulette, 18 tables
           Wheel-of-Fortune, 2 tables

    Other Gami ng

           Keno - 2 seats
           Race Book
           Sports Book
Review

Surrounded by a rather Disney-esque one-third-scale replica of the streets of Paris, this 83,000-
square-foot casino is a very pleasant place to gamble, in that Vegas-gimmick kind of way. It's one
of those kitschy places that "real" gamblers are appalled by. To heck with them, we say. A tall
ceiling gives the illusion that you are trying to bust the bank while strolling outside and results in
an airy effect. The place doesn't feel all that large, thanks to its layout. It has more than 2,000 slot
machines and more than 100 table games. A state-of-the-art race and sports book features live
satellite feeds of sporting events from around the world. The Paris is part of Harrah's Total
Rewards players' club.

Sacre bleu! The City of Light comes to Sin City in this, one of the few theme-run-amok hotels
left to its giddy devices. Stay here if you came to Vegas for the silly fantasy. The outside
reproduces various Parisian landmarks (amusing anyone familiar with Paris, as the Hotel de Ville
is crammed on top of the Louvre), complete with a half-scale perfect replica of the Eiffel Tower.
The interior puts you in the middle of a dollhouse version of the city. You can stroll down a mini
Rue de la Paix, ride an elevator to the top of the Eiffel Tower, stop at an overpriced bakery for a
baguette, and have your photo taken near several very nice fountains.

You'll find signage employing the kind of dubious use of the French language that makes genuine
Frenchmen really cross ("le car rental" and so forth), while all the employees are forced to dust
off their high school French ("Bonjour, Madame! Merci beaucoup!") when dealing with the
public. Don't worry, it's not quite enough to make you sick to "le stomach."

Quel dommage, this attention to detail does not extend to the rooms, which are nice enough but
disappointingly uninteresting, with furniture that only hints at mock French Regency. Bathrooms
are small but pretty, with deep tubs. Try to get a Strip-facing room so that you can see Bellagio's
fountains across the street; note also that north-facing rooms give you nice peeping-tom views
right into neighboring Bally's. The monorail has a stop out back, which adds to the convenience
factor. Overall, not a bad place to stay but a great place to visit -- quel hoot!

The hotel has eight more-or-less French-themed restaurants, including the highly lauded Le
Village Buffet, the Eiffel Tower restaurant (located guess where), and bistro Mon Ami Gabi.
The bread for all these restaurants is made fresh on-site at the bakery. You can buy delicious, if
pricey, loaves of it at the bakery, and we have to admit, that's kinda fun. There are also five
lounges.




Paris Las Vegas
From Wikipedia, the free encyclopedia

Paris Las Vegas is a hotel and casino located on the Las Vegas Strip in Paradise, Nevada, USA,
that is owned and operated by Harrah's Entertainment. As its name suggests, its theme is the city
of Paris in France; it includes a 5/8ths scale, 541-foot-tall (164.6 m) replica of the Eiffel Tower, a
sign in the shape of the Montgolfier balloon, a two-thirds size Arc de Triomphe and a replica of
La Fontaine des Mers. The front of the hotel suggests the Paris Opera House and the Louvre.
The Paris is linked via a promenade to its sister property, Bally's Las Vegas, through which it is
linked to the Las Vegas Monorail.

The project was originally announced by Bally's Entertainment, owner of the adjacent Bally's Las
Vegas. It was designed by architectural companies Leidenfrost/Horowitz & Assoc., Bergman,
Walls & Assoc. and MBH Architects.

Ground was broken for the Paris on April 17, 1997. It opened September 1, 1999 with fireworks
being shot from the Eiffel tower. French actress Catherine Deneuve flipped a switch, turning on
all of the Paris' lights.

Building began under Hilton Hotels, which purchased Bally Entertainment in 1996; Hilton's
casinos were subsequently spun off into Park Place Entertainment, which purchased Caesars
World in 2000 and changed its name to Caesars Entertainment in 2004.

At the time of its opening, the hotel ran amusing television advertisements throughout the United
States implying that it had ensured the authenticity of its reproductions of Paris landmarks,
culture and cuisine by looting the real city.

When the scale model of the Eiffel Tower was built, it was planned to be full scale, but the airport
was too close and the tower had to be shrunk. The scale is approximately 5/8ths.

Paris cost USD $785 million to build, and occupies 24 acres (97,000 m²).

The casino itself contains a sky painted ceiling, a popular choice among Las Vegas resorts. A
unique aspect of Paris Las Vegas is that the back legs of its Eiffel Tower actually come down
through the ceiling into the middle of the casino floor.

In November 2006, the Paris sports book was temporarily shut down pending an investigation of
its employees for allegedly underreporting tips.

In 2007, Paris Las Vegas premiered their new show The Producers, headlined by David
Hasselhoff. Once continuing issues regarding Hasselhoff not showing up to shows were fixed
(i.e., he left the show), the show refocused on Max, played by Tony Danza, who came on as the
celebrity actor for the show until its end in February 2008.

To counter the 2008-2009 economic downturn, Harrah's focused on marketing its properties to
specific segments of the population; as a result Paris is being marketed heavily towards gay and
lesbian travelers.
                            FINANCIAL INFORMATION
PARIS LAS VEGAS HOTEL AND CAS INO
CONDENS ED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands)
                                                             Twel ve Months Ended
                                                                 December 31,
                                  2006                  2007                   2008                   2009
REVENUES:
     Casino                       $      280,272         $      292,352        $      260,621         $      235,067
     Roo ms                              181,212                195,769               181,505                147,038
     Food                                 99,143                100,367                99,143                 89,954
     Beverage (includes
entertainment)                           35,496                  39,168               36,720                 34,037
     Other                               22,487                  24,267               22,164                 21,890
         Total revenues                  618,610                651,923               600,153                527,986
      Less-promotional
allo wances                              49,048                  50,285               43,784                 39,021
         Net revenues             $      569,563         $      601,638        $      556,368         $      488,965

COS TS AND EXPENS ES :


Direct costs and expenses
of operating departments:
     Casino                              161,156                167,225               149,857                135,163
     Roo ms                               56,176                 59,709                56,266                 45,582
     Food                                 85,263                 88,825                85,263                 77,361
     Beverage (includes
entertainment)                           19,984                  21,621               20,600                 18,992
     Other                               13,177                  15,410               12,766                 12,543
     General and
administrative ǂ                         108,257                116,042               97,225                 83,422

         Total costs and
expenses                          $      444,014         $      468,832        $      421,978         $      373,063
INCOM E (LOSS) FROM
OPERATIONS                        $      125,549         $      132,806        $      134,391         $      115,902

EBITDA                                   179,368                186,916               192,606                166,588
    Depreciat ion and
amort ization                            53,819                  54,110               58,215                 50,687
    Interest expense*                    63,080                  62,196               59,825                 57,202
NET (LOSS) INCOM E                $        8,650         $       16,500        $      16,351          $        8,013


* Interest expens e is related to original construction loans and improvements made on the property
ǂ Excluding interest, but including Depreciation and Amortization
      PARIS GGR PERFORMANCE SINCE JANUARY 2009
        January-09     21,052   -18.24%
       February-09     18,534   -14.60%
          March-09     21,084   -11.36%
           April-09    19,488   -14.13%
            May-09     19,189   -10.02%
           June-09     18,159   -12.30%
            July-09    19,829     -9.85%
         August-09     16,611   -16.76%
      September-09     20,606     -6.17%
        October-09     20,731     -3.11%
      November-09      19,463     -1.07%
      December-09      20,320      3.29%
        January-10     19,704     -6.41%
       February-10     17,669     -4.67%
          March-10     18,999     -9.89%
           April-10    17,734     -9.00%
            May-10     17,302     -9.84%
           June-10     16,875     -7.07%
            July-10    18,483     -6.79%
         August-10     15,384     -7.39%


FISCA L YEAR PERFORMA NCE
(through June 30)
                   A vg
                  Daily
        HOTEL     Room                  Room             Food        Beverage
       ROOMS      Rate   Occupancy     Revenues        Revenues      Revenues
2006       2,916 $175.89    96.80%   $181,212,402     $99,143,271   $35,495,739
2007       2,916 $189.42    97.10%   $195,768,736    $100,367,262   $39,167,712
2008       2,916 $179.58    94.96%   $181,504,837     $99,143,271   $36,719,730
2009       2,896 $153.75    90.47%   $147,038,254     $89,954,104   $34,036,688
2010       2,896  156.75    91.53%   $151,656,991     $92,113,002   $35,568,339


EMPLOYMENT (AS OF JUNE 30)
      Casino    Room     Food        Beverage       G&A         Other         TOTAL
 2006     1,277     999    1,487            317           562           824     5,466
 2007     1,187     908    1,299            345           574           717     5,030
 2008     1,184     934    1,351            362           513           718     5,063
 2009     1,102     866    1,265            340           478           647     4,697
 2010     1,143     897    1,311            353           495           671     4,870
      LAS VEGAS STRIP $72 million and above
  ECONOMIC PERFORMANCE INDICATORS, 2006-2010
EMPLOYMENT
STA TIS TICS (as of June)
                                                                          Other
             Casino dept        Rooms Dept.    Food Dept.   Bev. Dept.    Depts.         G&A            TOTAL
     2006           23,357           18,267        27,199         5,788       10,274           15,065       99,950
     2007           22,477           17,207        24,599         6,526       10,872           13,591       95,272
     2008           23,178           18,284        26,435         7,078       10,048           14,057       99,080
     2009           21,602           16,968        24,796         6,667          9,365         12,679       92,077
     2010           23,601           18,538        27,091         7,285       10,232           13,853      100,600

DEPARTME NTAL
MARGINS
                                                                          Other
             Casino Dept.       Rooms Dept.    Food Dept.   Bev. Dept.    Depts.
     2006           40.5%             67.0%        12.0%         41.7%          39.4%
     2007           40.8%             69.2%        10.3%         42.7%          35.6%
     2008           38.3%             67.6%        17.1%         41.1%          42.8%
     2009           41.0%             66.5%        18.3%         41.5%          42.1%
     2010           39.5%             67.5%        17.3%         42.1%          39.8%




 GROSS GAMING                  Las
   REVENUES                   Vegas     Baccarat
                               Strip      LVS
                            ($ 72 m+)   ($72 m+)
 MONTH
          January-06         583,667      91,009
         February-06         509,885      79,454
            March-06         494,425      35,959
             April-06        473,866      55,358
              May-06         555,052      86,882
             June-06         414,148      41,413
              July-06        490,023      52,484
           August-06         511,002      75,609
        September-06         470,928      55,074
          October-06         486,147      29,236
        November-06          599,961     117,242
        December-06          574,658     114,081
          January-07         562,325      90,757
         February-07         535,671     117,039
            March-07         497,300      36,039
             April-07        486,973      60,354
              May-07         560,421      71,237
             June-07         460,517      44,361
              July-07        565,189      72,209
           August-07         492,126      70,349
                              Las       Baccarat
                  Vegas       LVS
                   Strip    ($72 m+)
                ($ 72 m+)
September-07      509,096     45,640
  October-07      594,608    108,107
November-07       485,326     46,961
December-07       580,892    140,354
  January-08      559,728     80,983
 February-08      519,870    116,335
    March-08      477,018     34,766
     April-08     481,158     59,184
      May-08      465,935     69,445
     June-08      430,187     45,224
      July-08     461,287     52,311
   August-08      442,886     71,837
September-08      484,923     76,618
  October-08      438,300     40,500
November-08       405,552     39,780
December-08       443,922     78,129
  January-09      479,937     96,169
 February-09      395,360     57,490
    March-09      417,854     33,496
     April-09     407,932     52,681
      May-09      446,033     96,224
     June-09      378,734     47,704
      July-09     429,707     68,228
   August-09      412,333    109,515
September-09      446,129     70,489
  October-09      420,435     42,525
November-09       395,772     40,973
December-09       507,349     97,661
  January-10      555,811    129,828

 February-10     463,288      74,737

    March-10     452,798      41,535

     April-10    447,807      60,583
      May-10     493,263     115,469
     June-10     422,303      54,860
      July-10    479,225      74,369
   August-10     438,300      93,088
     NEWSPAPER CLIPPINGS DESCRIBING PARIS LAS VEGAS

Strip gets an Eiffel
Gary Tho mpson and David Strow

Thursday, Sept. 2, 1999

Paris Las Vegas, the final St rip resort to open this millenniu m, was greeted Wednesday night by a packed
but well-ordered mob nu mbering in the tens of thousands.

The $800 million Park Place Entertain ment resort opened its doors a few minutes after 10 p.m. to a cro wd
packed along both sides of Las Vegas Boulevard, fro m Bellagio Drive to Flamingo Road, spilling over into
the closed northbound lane of Las Vegas Boulevard. For 15 minutes, a mass of human ity poured into th e
new property, jo ining a crowd o f 4,000 invited guests.

Those that rushed in with the public liked what they saw, but couldn't see much -- thousands packed every
inch of the resort's floor space, turning foot traffic into a crawl. Every slot machine was t aken, and it was
difficult to find a seat even at the $100-min imu m blackjack tables. Shortly befo re 11, the fire marshal
ordered Paris to stop letting in people because the place was too crowded.

"We have never seen so many people in one place," said Ruth Davis of Puyallup, Wash., who was staying
at Bally's. "It almost looked like New Year's Eve in Times Square. We're co ming back to morro w morn ing."

Those in the VIP cro wd got a better view, having to share the resort with a co mparat ively paltry 4,000
invited guests. VIPs in attendance included casino mogul Donald Tru mp.

"To say it's phenomenal is an understatement," said Las Vegas Mayor Oscar Good man. "I'd rather be here
than in Paris itself. It makes me proud to be mayor o f a city with such a wonderful attra ction."

"It's gorgeous," said Congressman Frank LoBiondo, R-N.J. "It has a truly warm and intimate feeling about
it. It's hard to explain how magnificent it is unless you can see it for yourself."

"A magnificent and unique attraction to the skyline of Las Vegas," said gaming attorney Robert Faiss of
Lionel, Sawyer & Co llins. "Without exception, the people I've talked to give it rave reviews for its quality
and character."

"Wow!" said former Nevada Gaming Co mmission Chairman Bill Curran.

"I just spent a week bicycle riding through the south of France, and this is just like being there," said
International Game Technology Chairman Charles Mathewson.

"I walked in and said, 'Fantastic!"' added Gov. Kenny Guinn.

An estimated 2,000 o f the resort's 3,000 rooms were filled on opening night. Starting today, and through
Labor Day weekend, Paris Las Vegas will be sold out.
For the past year, as the resort's exterior has gradually taken shape, its faithfully executed replicas of
exquisite Parisian architectural landmarks beckoned invitingly, creating a sense of anticipation that built as
opening night approached.

Opening ceremonies began at 9:42 p.m. -- 11 minutes behind schedule, thanks to a stubborn breeze -- as the
lights on the real Eiffel To wer were ext inguished by the great-grandson of its designer just as dawn broke
on Paris. With a sudden concussion, fireworks shot into the sky, lighting the Paris landmark's new sister on
Las Vegas Boulevard.

French actress Catherine Deneuve then threw a switch turning on the light s illu minating the Las Vegas
tower.

While fireworks danced about the tower, the Bellagio's trademark fountain show was starting next door --
but, for perhaps the first time in its history, few people were paying any attention.

Like Bellagio, Mandalay Bay and the Venetian, the other new mega-resorts that have opened on the Strip in
the past 11 months, Paris Las Vegas exemp lifies a spiritually enrich ing trend in Las Vegas hotel-casino
design that plays on the universal desire for excape fro m the mundane, workaday world, pro mising to
whisk v isitors away on a ro mantic escape.

"If you find yourself mag ically transported to France, we've done our job," said Paul Pusateri, president of
the new hotel-casino and its sister resort, Bally's Las Vegas.

The effect begins with the exterior o f the project, where intricately detailed re-creat ions of such icons as the
Paris Opera House, the Arc de Trio mphe and the Louvre attract the eye and stimu late the senses.

The fau x Eiffel Tower rises 540 feet above the Strip, affording spectacular views fro m its observation
tower near the top of the structure and the elegant French restaurant 11 stories above the ground.

The tower was built with the orig inal p lans for the Eiffel Tower, and even includes the same paint used on
the authentic tower. Unfortunately, few got to see the view on opening night -- the fire marshal ordered the
tower cleared shortly after 5 p.m., because of fireworks stored in the structure.

The feeling continues with the exquisitely designed interior, whose capacious ceilings and airy lines of
sight go a step beyond the well-received inside of New York-New York, the three-year-old city-themed
property that generated the highest initial returns on investment of any new Strip hotel-casino in the past
two decades.

"The interior of Paris Las Vegas is much mo re focused on authenticity of design," Pusateri said. "We've
incorporated some wonderful h istorical land marks in a way that will set a new standard."

Among them is a rep lica o f the Rue de la Paix shopping district, comp lete with its cobblestone streets and
quaint cafes, restaurants and retail shops, one of which is La Boulangerie. This wo rking French bakery
supplies the resort's fresh-baked breadstuffs to other Paris restaurants, delivered throughout the day by a
costumed bicycle rider fluent in French.

Nearby is Le Village Buffet, wh ich offers re -creations of a town village and homes fro m the different
provinces of France, each with classic cuisine fro m those regions in a menu that changes every eight days.

The resort also features Parisian-themed lounges such as the lushly decorated Napoleon's Retreat and the
bistro-styled Le Cabaret, both offering live entertain ment. The passage to Paris' convention facilit ies
incorporates a replica of the Versailles Hall of Mirrors.
The attention to detail throughout the resort isn't due just to Paris Las Vegas' heartfelt ho mage to the
original designers of some of the world's most-recognized landmarks, but also to the insistence by French
authorities on quality. The licensing agreement that allows Paris Las Vegas to replicate the Eiffel Tower is
an example.

"We had to use the exact same paint and duplicate the lighting of the original," Pusateri says.

Whether deserved or not, the Parisian reputation for rudeness to tourists hasn't been so faithfully duplicated,
a tribute to the training the resort's employees received in the months leading up to the debut.

The emp loyees appeared to have the crowd well under control as entertainers walked along the barricades,
treating wait ing patrons to French music while teaching the crowd the French equivalent of " Good
Evening."

Inside, Arthur Goldberg said the event was anti-climactic for h im. Go ldberg is chief executive of Park
Place Entertain ment, the Las Vegas company that owns Paris Las Vegas.

"I've been walking around here for four days now, and it's hard to turn it over to the people it belongs to
now," Goldberg said. "It's going to become a landmark."

The first group sprinted toward the doors, ignoring the pleas of security to slow down. But des pite the fact
that literally thousands of people were packed into a mob outside the doors, there didn't appear to be any
shoving or crowd-related in juries.

As the river of people flowed by him, M ichel Ducamp, the executive v ice president of hotel operation s,
happily puffed on a celebratory cigar.

"We were expecting 20,000, 30,000," Ducamp said. "The crowd was very cooperative, very understanding.

"We spent a lot of time going to the openings of other properties. We wanted to ensure the safety, security
and health of our visitors. That's the most important thing."

Hundreds of patient, courteous resort employees helped ease the opening -night crush, which filled every
table game, slot machine and bar and lounge seat in the casino. Lines quickly formed at a bank of
Megabucks machines, packed with superstitious slot players hoping to emulate the luck of a gambler who
hit a big jackpot at the debut of the Mirage 10 years ago.

"If I had to pick one thing that will distinguish this property, it would be the emp loyees ," said Goldberg.

An hour before the first invited guests entered, Pusateri gathered hundreds of workers together for a last -
minute pep talk, telling them opening night would be one they'd remember for the rest of their lives.

Pusateri knows his job didn't end with the official unveiling of a well-designed property. His 13 years with
Four Seasons Resorts, including stints as general manager of the lu xury hotel chain's San Francisco and
Beverly Hills operations, gave him an appreciation for the benefits of customer service.

While that's difficult to deliver on a pro ject the size and scope of Paris Las Vegas, "The opportunity to do
something a little bit d ifferent in this town is truly exciting," Pusateri says.

"We wanted to scale things down and offer a personal approach to our customers. The challenge is to
interpret that, to do in a 3,000-roo m hotel what we can do in a 300-roo m property," he says.
The personal approach for hotel guests begins with check-in, he says.

"We've broken all front-desk tradition in Las Vegas by establishing separate check-in areas with just two
stations each, separated by ornate wrought-iron gates. Emp loyees will co me out fro m behind the counters
to escort customers and provide them with true personal service.

"We look at the operations from a customer's eyes," he said. "For examp le, there won't be any ropes or
stanchions, because if you have those, you're advertising you have waiting lines."

The goal is to build customer retention, Pusateri said. "They'll try every property, but they 'll co me back to
the one offering the best price-value relat ionship."

"You put all this together and you have one hell of an equation for success," said Pusateri.

However, such ambitious plans create new challenges, includ ing hiring the 4,200 people needed to staff the
resort.

"We had to develop a work force that accepts the culture we need to implement our vision -- to treat others
the way you'd want to be treated. It began with hiring and training the right emp loyees and continues with
execution and consistency," he said.

"The excitement of doing all that on a project of this size and scope is tremendous," Pusateri said.

So, too, is the challenge of meeting the financial pro jections expected by executives of Park Place
Entertain ment, as well as investors who've grown accustomed to the capital appreciation Goldberg has
traditionally delivered to stockholders.

Like other Go ldberg executives, Pusateri adopts a cautious approach when he talks about cash -flow
projections for Paris, pegging them at $120 million fo r the first full year of operations. "But that's an
incremental increase fro m Bally's Las Vegas, which should show a slight cash -flow decline," he says.

Jason Ader, senior managing director of Bear Stearns & Co., agrees with the Paris Las Vegas projection
and maintains an "attractive" rating on Park Place stock.

Calling it "a rare construction project for the desert city, as it will open on time and within budget," Ader
says the new property should generate the highest annual return on capital invested -- 14 to 16 percent -- o f
any of the four resorts that have opened since last October.

"Paris is an exciting and amenity-rich property that was a bargain to develop by Las Vegas standards,"
Ader said. "It also should help further the surge in visitation that was created following the openings of
Bellag io, Mandalay Bay and the Venetian."

Some analysts expect the adjacent Bally's cash flow to approach $100 million annually due to its linkage
with Paris Las Vegas, wh ile others expect some cannibalization of Bally 's business as regular customers
clamor to see the new property.

A few also believe Paris Las Vegas will exceed the $120 million incremental increase Pusateri projects,
citing the first-year performance of New York-New York, wh ich posted $130 million of cash flo w in 1997
with 900 fewer rooms than Paris. New Yo rk-New York's number fell to an estimated $100 million in 1998.

With estimates for Paris' cash flo w ranging fro m $120 million to as high as $160 million, the project ions
would translate to a return on the project's $800 million cost of 15 to 20 percent. While a bit lower than
historical returns for the most successful new Las Vegas resort investments, such numbers would exceed
the initial returns of Bellagio, Mandalay Bay and Venetian, the other three mega-resorts that have opened
within the past year.

Pusateri, who oversees both Bally 's and Paris, notes that the two hotel-casinos share reservation and
switchboard services and other operations, which will help to control costs. The properties also give Park
Place Entertain ment 5,700 roo ms at the southeast corner of Flamingo Avenue and the Strip, a"crit ical
mass" that analysts expect will benefit the comb ined operation.

"We can capitalize on the Bally's brand name, which is very well known, and co mbine it with Paris, which
will be a 'must-see' resort," Pusateri said. And it's not just tourists expressing interest in the resort.

Paris Las Vegas' ballroo ms and salons, coupled with those of Bally's, give the co mplex 315,000 square feet
of meeting space, any or all of which can be booked through a single sales department.

With Paris Las Vegas now open for business, there are three resorts left to debut in the current and largest -
ever wave of Las Vegas hotel-casino construction. The $1.3 b illion, 2,567-roo m Aladdin-Desert Passage
resort on the Strip just south of Paris Las Vegas is scheduled to open next spring, the 496-room Hyatt
Regency Lake Las Vegas project in Henderson is expected to open by year's end and locals oriented
Suncoast opens in Summerlin in Fall 2000.

The Venetian and the Resort at Summerlin, also part of the current wave, underwent "soft" openings with
some attractions still unfin ished.

That fact wasn't lost on Goldberg.

"It was brought in on budget and, more importantly, on t ime," Go ldberg said. "We're not going to have
three grand openings."




HARRAH’S DISCUSSES GROWTH PLANS

Tuesday, March 4, 2008

Since Harrah’s Entertainment went private in January, the company has been fairly quiet about its
growth plans in Las Vegas and beyond. But that might be a function of its scaled-down public
relations and marketing staff.

During the company’s fourth-quarter conference call Wednesday, executives spoke
enthusiastically about an under-construction hotel tower at Caesars Palace and plans for a
previously discussed stadium behind the company’s Paris Las Vegas and Bally’s casinos.

The 20,000-seat stadium plan, which still has plenty of skeptics, would be built by stadium and
entertainment company AEG, which would also have naming rights to the building.

The stadium would be built with a mostly tourist population in mind and would be able to
accommodate a professional team as well as special events, concerts and award programs, Chief
Executive Gary Loveman said. The stadium would also feature sky boxes that would be
customized and occupied by their casino owners year-round, he said.
The 665-room Octavius Tower, part of a $1 billion expansion at the company’s Caesars flagship,
is on track for a 2009 opening.

Executives said they are still working out a final figure for how much money the company plans
to spend this year improving existing properties, excluding new construction projects.



Sep. 26, 2009


OVERLOOKED RENOVATIONS: Work at Paris Las Vegas
at issue
Whistle-blower prompts 20 notices of vi olation

By JOAN W HITELY
LAS VEGAS REVIEW -JOURNAL

As of midday Friday, county building inspectors had issued more than 20 notices of violation to
Paris Las Vegas for unpermitted or substandard work they have uncovered while investigating a
September complaint by a new whistle-blower, an electrician who was laid off from the Paris in
February.

With the help of former co-workers, electrician Paul Sepe said, he compiled a list of 33
overlooked renovations. The list covers many items that Harrah's Entertainment did not disclose
to the county back in March 2008, when it was supposed to come clean on all renovations it did
from 2000 to 2007 without permits or inspections at its local properties, which include the Paris.

"We're actively investigating the items noted in the compla int," county spokeswoman Stacey
Welling said Friday afternoon. She did not have an accounting of any deficiencies the Fire
Department's separate investigation has found in Paris' fire-protection systems.

Harrah's Entertainment did its best in its 2008 disclosure, company spokeswoman Marybel Batjer
said late Friday via e-mail. "The list we submitted to the County represented a thorough review of
over 2,000 projects -- the omission of these 29 projects was a simple oversight, and is now being
addressed." Nine Paris projects were on Harrah's list.

The casino company has been working "closely and very diligently" with the Clark County
district attorney's office and other county agencies to remediate all projects that lacked permits,
Batjer also wrote.

Sepe, 48, who is unemployed, took his list to the county Fire Department, his union's out-of-town
leadership and the Las Vegas Review-Journal, as well as several members of Nevada's
congressional delegation. He worked at the Paris in building operations from 2007 to early 2009 -
- and before that, at Harrah's Las Vegas.

The county's notices to Paris cover deficiencies in areas frequented by guests, such as the sports
book, restaurants, a wedding chapel, parking garage and the check-in area for so-called Diamond-
level guests. Some employee areas -- such as restaurant kitchens, offices for risk management and
Asian marketing, as well as the hotel's main phone room -- also contain work that fails to meet
safety codes.

A dramatic example of a hazard that Sepe reported to the county, resulting in a violation notice,
was supervisors' decision to not upgrade the electric panel serving several air conditioner units
that were added to cool a small mechanical room that houses crucial drives, which power the
pumps for the entire property's air conditioning system. The notice orders the Paris to replace the
panel, which has been undersized for about a year.

If the panel started a fire, it could knock out all the air conditioning and create danger for guests
or employees in the parking garage, on the seventh level where the mechanical room is.

Sepe said some electricians warned bosses about the problem, but were ignored. He said he was
told the air-conditioning units were programmed to never come on at the same time, the scenario
that would trigger an overload.

Sepe claims his Paris supervisors routinely had in-house workers do electrical renovations
without permits and inspections, though they are required by law to ensure safety. Sepe said he
deduced there were no permits for certain jobs because he and others never saw county inspectors
at the scene, and those jobs were never held up waiting for inspections.

"There is a set of (blue) prints in the electric shop, where the senior electrician wrote in red ink all
the changes that were ever made," Sepe said, describing how he believes the hotel kept track of
electrical modifications that don't show on official building documents filed with the county.

Another clearly visible renovation without a permit -- which Sepe acknowledged that he
participated in and has reported to the county -- was the wholesale replacement of ceiling light
fixtures throughout the eight-story parking garage, which entailed extensive rewiring. A separate
violation notice details that workers acquired some of the fluorescent light fixtures for the garage
by cannibalizing "every other (fluorescent ceiling) light in the main back-of-house hallway,"
which reduced the hall's lighting. The workers reinstalled those fluorescents in the parking
garage, eliminating high-pressure sodium bulbs, which consume more power.

The electrician told the newspaper he decided to step forward because he was worried about
building safety at the hotel. He said he had followed the news coverage of building deficiencies at
other local Harrah's local hotels in the last couple of years, and did not believe the casino
company had been entirely honest about the Paris.

Clark County had requested a summary of covert renovations from Harrah's Entertainment last
year, after the Review-Journal reported on never-inspected projects at Harrah's hotels, primarily
at the Rio and Harrah's Las Vegas. Criminal arraignments of the parent corporation and two
supervisors from the Rio and Harrah's on misdemeanor charges of violating building codes have
been repeatedly postponed for more than a year as the hotel group documents code compliance at
its properties.

Sepe also said he filed the complaint in response to what he considers dishonorable behavior at
Harrah's hotels by some members of his union, Local 501 of the International Union of Operating
Engineers.
One engineering supervisor at Paris has been a district representative in 501 leadership, which,
according to Sepe, is symptomatic of a cozy relationship that benefits Harrah's Entertainment
management and union leaders more than union members. Local 501's Los-Angeles-based
business manager, Christopher Brown, did not return a phone call requesting comment.

Batjer said the casino company sees no conflict in the union matter.

				
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