TWO MAJOR VEGAS STRIP NIGHTCLUBS ABOUT TO UNDERGO MAJOR CHANGES?
The drumbeats are getting so loud I’m almost forced to disclose all the facts as I’ve been told. But out of respect to last minute dangers of deals falling apart because I’ve revealed supposed secrets I will omit the names to protect the innocent. Not one, but two separate and non-affiliated nightclubs on the Strip are probably days away now from the official announcements about major changes taking place and one may even be sold in the process. Be assured they will be major shocks and surprises when its made public.
Club No. 1 has just recently begun experiencing problems of lowered guest counts since it opened in a flurry of great press headlines from its superstar owner-partners who had bankrolled it. I’ve learned reliably that because of recent events the hotel-resort landlords have successfully “persuaded” the club to cut itself in half thus shrinking its original concept space and then converting the new ‘vacant’ half into a far-wider appealing ultra lounge hangout.” Official word is “No Comment” but my story is solid and upset execs didn’t deny the successful project had been “an isolated Vegas market misunderstanding”.
Club No. 2 has been the subject of a near two-month long series of rumors that its “going to be sold.” Everytime I’ve asked for comment as more and more wicked whispers and racy rumors trickle in, I’ve been emphatically told “it is not for sale.” But the drumbeats grow louder from San Diego to Vegas and even local liquor distributors say the deal is finally in place for licensing applications to reflect a change of ownership. I’m reliably told that a seven-club nightlife operator headquartered in Orange County is allegedly prepared to shell out up to a rumored $90 million in the complicated transaction which includes an apparent payment of a supposed existing $70 million Los Angeles investment bank hedge fund loan. I’m also told that one of the celebrity owner-partners has been actively pushing for the sale to prevent problems of other recent events spilling into his own business life.
For the record let me state that the official word “There is no sale and we are not seeking a sale.” Has remained unchanged for the past seven weeks! However this week the stories concerning both nightclub operations escalated to where I’ve been told to expect announcements within the next ten days or so. Final deal sticking points, contractual sign-offs and legal transfers have to have dotted I’s and crossed T’s just wrapped up and then all of the above guessing game will become crystal clear.
Two other connected Strip rumblings: a new $4 billion privately financed resort-casino serving up the “ultimate in luxury” is being readied for announcement . Plans call for it to be located on the far south section of the Strip not far from the prestigious McDonalds Highlands residential project. Plans for a Vegas nightclub operator to co-own and manage two new clubs in Miami and Vegas hotel group properties have been rumored to have been “put on hold” for now due to the nation’s tightening economic situation.