VEGAS NEVER STAYS THE SAME
And now for five ever-growing ever-changing Vegas stories:
1. HOW MANY NEW ROOMS? The figures are staggering depending on who you listen to! One Wall Street analyst who keeps watch on Vegas development and growth says by 2011 another 28,000 rooms will have been added along the Strip. Another money-market banker monitoring the $30-bill expansion of Vegas says by 2012 the figure will hit 40,000 new rooms, well over and above today’s numbers. The effect of all the new guests will be overwhelming, and add to that the 100,000+ new employees that must be hired to look after them and you’ve got one extraordinary situation.
How and when will the physical infrastructure be added to cope with all the expansion? What will it do to our already congested Las Vegas Strip and the service roads of Dean Martin Drive and Koval Avenue? How will CityCenter, with its 10,000+ new rooms alone, ensure trouble-free entrances, exits and parking for an estimated opening night’s 7,000 cars?
I started thinking about all this because last week I told you all about the spectacular makeover and expansion planned at the Luxor (click here if you missed it).
We already knew that Sheldon Adelson’s Venetian property will open his new 3,400 room Palazzo in early November, and across the street, Steve Wynn will open his new Encore tower, with the giant Echelon Place already underway.
Sol Kerzner will bring his Atlantis from the Bahamas alongside Circus Circus, and former Mandalay Bay Group honcho, Glenn Schaeffer is opening the Fontainebleau between the Sahara and the Riviera.
Now comes the expected super-changes at Caesars Palace:
A sixth tower, the Octavius will open early 2009, and the existing Forum Tower will be completely remodeled with the front Strip entrance getting a larger new look. Three new swimming pools, a 265,000 square foot convention area, new restaurants and entertainment venues will be added in the $1-billion program that will increase Caesar’s overall room count to 4,013 from today’s 3,348.
It’s the most expensive outlay in Caesar’s 41-year-history. Those two fabulous suites atop the Forum Tower that Tom Cruise and Dustin Hoffman used for their hit Rainman movie will be redecorated and made even more luxurious. The new Octavius Tower will include 71 top-floor super-suites plus poolside second floor villas with their own terraces. They will be the last word in today’s luxury with bedside I-Pod docking stations, flat-panel and luxury-marbled bathroom TV sets. Directly across the street, Harrah’s is preparing for a master-upgrade of its 91-acre Strip properties and land all the way from O’Shea’s on the north end to its most southernmost resort, the Paris.
“This billion dollar investment in our flagship Caesars Palace property is an important part of our comprehensive global growth strategy,” said Gary Loveman, chairman and chief executive officer and president of Harrah’s Entertainment, Inc. “From the United Kingdom to Las Vegas and beyond, we will continue to enhance our network of branded properties to deliver unforgettable guest experiences and provide good jobs for our nearly 100,000 team members around the world.”
Tom Jenkins, president of the Western Division of Harrah’s added: “With 2006 operating income up 63% over the prior year, and impressive increases in customer service scores during the same period, Caesars Palace hasn’t just gotten bigger since the 2005 opening of the Augustus Tower; it’s gotten better. Our expansion plans in Las Vegas are a reality thanks to the hard work of a great team of employees.”
Gary Selesner, president of Caesars Palace commented: “Our guests have been thrilled with the Augustus Tower and its associated upscale services and amenities. This new expansion opens an exciting new chapter in the renaissance that began with opening of The Colosseum, and continues with the February 2008 debut of Bette Midler’s all-new production, which will be presented for a minimum of two years.”
2. NEW SPORTS PIT: Coming August 9, just in time for the kickoff of football season, the new Sports Pit at Harrah’s Las Vegas will be a sports fan’s dream come true. When the last big game is over, the venue becomes a sports-themed lounge allowing the fun to continue late into the night.
“People come to Las Vegas to experience the best in gaming, and the new Sports Pit at Harrah’s is a one-stop location that meets all of their needs,” said Don Marrandino, President of Harrah’s Las Vegas. “The combination of a race and sports book and a gaming pit allows players be in action while in action.”
Players are literally in the center of it all with televisions surrounding the gaming area. State-of-the-art 3-D video technology is shown on 40 high-definition plasma screens, and two 100” high-definition projectors will showcase the biggest games of the day. Television screens built into every table ensure that fans never need to choose between playing their favorite table games or catching a sporting event.
3. LUXOR CHANGES: Last week, space and time prevented running our interview with Luxor president, Felix Rappaport in Luxe Life. Since today’s edition is all about Strip expansion and makeovers we decided to bring you his comments about that $300-million project. I asked the Luxor head honcho what it all said about the future of the resort for 10-years down the road.
He commented: “I believe that Luxor [formerly a part of the Mandalay Bay Resort Group acquired by the giant MGM-Mirage company] had become a very successful property but stuck in a plateau, stuck in a rut, meaning that come hell or high water the property did about $120 million in earnings year after year. The first year that we were here we improved that, and last year we had the best year ever yet, up to $170 million.”
“We’re not the British museum with a lot of ancient artifacts. We are a Vegas casino resort. The problem was that Luxor was being run as a dormitory, and not a really well-run one at that. We now have put the improvements in place that will not only keep our own guests from leaving the property, but also bring in other outside guests not even staying with us. We’re becoming approachable, intriguing and fun - and the potential here at the south end of the Strip for us is spectacular. We did look at changing the name but we are staying with Luxor because it is a brand - our problem was that we had no branding inside.”
“Here we were with not just a true icon in Vegas, but with our light beam atop the pyramid—one of the few man-made sights seen from outer-space. Our passion and creativity will now take the Luxor to the next level and it will be unrivaled on the Strip. The gentlemen at the top of our company allow presidents to create a great deal of the personality and vision for the individual properties. Our belief has always been that this 60-acre plot of land with the 15 acres across the street had undeveloped potential both within the pyramid and outside the pyramid. So five years from now, you will see a wonderful pyramid with premiere attractions and ancillary facilities around the property to benefit our shareholders to the maximum. I don’t think we will add baby pyramids, but we will add more towers, better pools, spas, new parking facilities, and new convention facilities—all of it.”
“We are in our infancy as far as our master plan; inside will be a 3.4-acre entertainment destination geared toward adults, replacing the side-by-side kiddie stuff, and a topless show, which is what we inherited. We had a pirates 4-D movie that did nothing for us. Instead, Fantasy has become a great brand for us. So that space will all become restaurants, nightclubs, retail, and entertainment options that will all appeal to adults.”
“Inside the property you will see a whole new casino. Five years from now the Criss Angel Cirque show will be half way into its ten year deal. I believe it will be one of the top shows on the Strip just like LOVE is. I believe LAX and Cathouse will be great, and other areas like the Luxor galleria further built out. You will continue to see the illusion of the property - instead of over themed in the Egyptian, to one that makes everything thing hipper and cooler.”
“I maybe the most un-cool, un-hip guy in the world, but fortunately I understand what people want and I am able to align myself with people and partners that know that Vegas has become successful as an adult playground. Its simple: people come here to have the best time anywhere. It doesn’t matter if they are in their 20’s or 30’s or 40’s, 50’s, or 60’s; they want to have a good time and for the time they are here they want to be hip and cool. This is more about quality and every segment of your business paying its way: hotel, casino, retail, spa, and salon. People know when they come to this city they get the same great service if not better as they would if they went to the best hotels in Paris, or London, Hong Kong, Chicago, or New York.”
4. HEADING SOUTH: The expansion of Vegas isn’t just confined to the famed Strip. Obviously, one day with all the development, the downtown area will windup reaching the Stratosphere and Sahara locations. But now it’s also begun to stretch south all the way to the new M resort—an 80-acre mixed-use resort project already underway about 10 miles from the major resorts further north. MGM is loaning $160-million in start-up financing which can be converted into a 50% equity interest in the resort after 18 months if not repaid at MGM’s request. The first phase of the resort project is expected to cost $700 million and include 400 rooms, a 100,000 square foot casino, various restaurants and bars, a 70,000 square foot event center and a spa. The first phase is set to open in mid-2009.
5. HEIGHT TROUBLES: Australian mogul James Packer, who is building the new Crown resort-casino near the Riviera, has run into trouble even before its groundbreaking. The US Federal Aviation Administration believes it will be a hazard because of its planned 575-meter height. Packer wants it to be known as the world’s second tallest building. Despite a ruling last year by the FAA that anything larger than 200 meters could be a problem due to the sites proximity to our McCarran airport, Packer has proceeded with his ginormous building plans!