NIGHTCLUB BOOM OR BUST?
With all the nationwide headlines focusing on the Vegas nightclub scene and celebrities galore invading them every weekend, you have to wonder if the boom will continue or when it may all go bust. Jay-Z is the latest star to join in the action as a high-rolling investor, joining the ranks of Christine Aguilera and DJ AM at LAX, Celine Dion and Shaquille O’Neal at PURE and the soon to open Company at Luxor bankrolled by Nick Lachey, Wilmer Valderrama and Nicky Hilton.
The good times have really been rolling for the operators: Pure’s ten nightlife venues are expected to rake in $120-million this year; TAO at the Venetian is the best-selling restaurant club in the US with $55-million in sales, and Steve Wynn boasts that his Victor Drai club TRYST raced through the $40-million revenue target. But just how long can it keep roaring - particularly as we go into this fall season, welcoming more newcomers and saying goodbye to some “old-timers” as they remodel to strike back? It’s a lengthy subject I discussed with my nightlife guru pal, Jack Colton - and here for Luxe Life readers are his expert thoughts:
“The multi-million dollar Las Vegas nightlife industry is absolutely booming right now, and is in the middle of another major growth spurt with as many as 16 new nightclubs and lounges opening their ropes within the next year. Between the complete annihilation of all things Egyptian at the Luxor (soon to be “The Pyramid”), the Luxor is ambitiously opening up at least five (5) additional venues within the next year; the $780,-million expansion of the Hard Rock Hotel and Casino, Miami’s Opium Group (of Mansion, Prive, Opium in Miami) taking over all things nightlife at Planet Hollywood, the new Palazzo tower at the Venetian (with Jay Z’s 40/40 and a Tao addition ), the new Encore tower at Wynn Las Vegas (look for another venture between Victor Drai and Wynn), and the timely renovation of both Tangerine and Light (aka: The Bank as of December) – the battle has begun!
Most would agree that the current amount of Las Vegas nightclubs is fairly in line with the amount of Las Vegas club patrons. It works out nicely. But what happens a year from now when a slew of new high-budget venues hit the Strip? I’m going to go out on a limb and predict one of three scenarios (or more likely a combination of all three):
Scenario 1: The additional national exposure (celebrity coverage, press, etc), and creative marketing provided by the influx of new clubs will help the overall Las Vegas nightlife industry grow to the point where the market can easily support itself.
Scenario 2: The added competition will affect the basic principle of “supply and demand,” inevitably making the events that clubs throw even more spectacular, causing the prices of bottle service to fluctuate favorably towards the consumer, and making two out of every three advertisements for Las Vegas tie into nightlife somehow.
Scenario 3: Only the venues with the strongest teams, the best overall entertainment products, and the most loyal customer support will survive.
What will ultimately happen venue-by-venue is truly anyone’s guess, but the fact that nightlife is widely considered to be one of the biggest driving forces behind all that is the new Las Vegas is very exciting to say the least.
*After four years of making headlines, building careers, and pushing Las Vegas nightlife to soaring new heights, Bellagio’s Light Nightclub has officially closed its doors for good. Work has begun immediately on transforming the space into Light Group’s newest venue, The Bank, which has an anticipated opening of January 1st, 2008. Look for soft-opening invites to start coming in around December 15th, and plan on walking into a much bigger space. This portion of the Bellagio was originally remodeled as an elevated tram stop for service between the hotel and Fashion Show Mall, but the plan was scrapped and they ultimately built a nightclub instead (hence the escalator entrance that Light had). Word on the street is the space below the club will be incorporated into Bank.
*Tangerine at TI was scheduled to shut down for complete renovation following Labor Day weekend, but it has since then been decided to keep the venue open at least until New Years on a Thursday – Sunday basis. Their Wednesday night crowd will be ushered towards Tangerine’s new big sister LAX, and the venue will eventually resume its original fate sometime in 2008.
*After recently being acquired by the Morgan Group, the Hard Rock Hotel and Casino has already broken ground on what will ultimately be a staggering $780,000,000 expansion of the property. A source within the hotel tells me that this development will include two new towers, one major nightclub that opens up to the hotel pool similar to how Tryst opens up to it’s iconic lake and a snazzy rock lounge that will adjoin the concert venue The Joint. The best part about it is that, contrary to the many rumors floating around last year when the Morgan Group acquired the property, Body English is completely safe from closing down.
*As most people know by now, the Egyptian theme is currently being relentlessly gutted from every aspect of the Luxor and they are working hard to transform the hotel into MGM Mirage’s biggest party spot with as many as five (5) new nightlife venues on the drawing board in addition to the recently opened LAX, Noir, and Aurora. After Company restaurant opens in October the next venue will be the sexy new hybrid restaurant with Iron Man chef Kerry Simon / nightclub Cathouse run by Genghis Cohen to open in early December. The venue features a 5,000 sq ft lounge, and a 5,000 sq ft restaurant that will combine as a nightlife Cathouse after 11:30pm each night with lingerie-clad hostesses and dancers
*The Miami nightlife management company Opium Group (Mansion, Prive, Opium Garden) is heavily involved in the opening of as many as four (4) new nightlife venues within the property. Talented former Pure Management Director of Operations Greg Jarmolowich has been appointed t spearhead the operations. Owner Robert Earl has confirmed that their first ultra lounge Prive will be open for the November 20 grand re-opening of the resort.
*The highly-anticipated Blush Boutique Nightclub, a partnership of Sean Christie and Steve Wynn, also had its official Grand Opening with great success and followed it a week later with Interscope Records after VMA party. The 5,500 sq ft venue occupies the former space of Lure Ultra Lounge, provides a nightlife option that can easily transform from an elegant lounge to a high-energy nightclub at the flip of the switch.
Jack - a sincere thank you for that report.
The two current kings of the Strip are without a doubt: PURE at Caesars Palace, which attracts celebrities nightly, and TAO at the Venetian, with LAX at the Luxor nipping at their heels and certain to be chasing both in the coming months.
Our photos show new weekly regular guest, LAX DJ Bob Sinclair along with singer Gary Pine who’s the vocalist on Sinclair’s hits.
Hip-hop artist Lil Jon watched the session from a VIP booth with magnums of Moet Chandon champagne and Patron shots! On the dance floor was LA Clippers guard Cuttino Mobley. In keeping with the celebrity turnouts, TAO presents a special night this evening to celebrate the birthday of rapper, Nas while Heidi Montag, star of MTV’s The Hills, is at LAX to celebrate her 21st birthday.
This nightclub component of the Vegas scene is probably the biggest money-making factor of our current fine dining, spa services, retail shopping and super-suite attractions. It will be a fascinating case study to watch its growth or its stumbles. But there is no doubt that territory that once belonged to New York, Paris or Los Angeles is now wholly owned by Vegas as the nightclub party capital of the world.