As we were the first to report, Rio has been adjusting its staffing levels since taking over operations from Caesars Entertainment.

Back in August, Rio let go of about 30 manager level executives.

Now, as many as 50 additional staff have been let go from the public areas department. The public areas department (PAD) is responsible for the cleanliness and maintenance of public spaces like the casino floor, lobby, hallways, restrooms and elevators.

We inquired about the layoffs, and Rio responded with a statement mirroring the one it shared in response to our story about staff reductions in August: “We proactively expanded our workforce while taking over operations from Caesars Entertainment in Q4 2023. As the resort undergoes extensive construction and remodeling, we now have a better understanding of the staffing levels Rio needs to provide guest service and operational efficiency. We deeply appreciate the unwavering commitment and diligence of all our team members and extend our heartfelt gratitude to those directly affected by the adjustments.”

Rio has been transparent about its staffing “adjustments” (nudge required), but won’t get into details about the exact number of people let go or their specific positions or departments.

The bottom line is business levels aren’t what they were expected to be at Rio and tough business decisions are being made accordingly.

While the optics aren’t great, Rio seems to be moving in the right direction overall.

The owner, Dreamscape, has put its money where its resort is, with an ongoing renovation that has given the off-Strip Rio a much-needed refresh.

The reality is there are challenges nobody knows if Rio can overcome (location being top of the list), and recovering from years of brand damage and neglect by the resort’s former operator hasn’t been easy. Among its many challenges, Rio has to deal with years of bad reviews online, somehow distinguishing its new incarnation from its years-long decline.

The improvements at Rio are hard to ignore, especially when set to the banger we made with A.I.

We’re a big fan of Rio and its recent efforts, so it pains us to share news of staff reductions, but if we didn’t, what scoop would the Las Vegas Review-Journal have to steal without attribution? No, really, they’re shameless. Here’s the story the unethical nitwits at the RJ published after we broke the news. They even had the balls to imply elements of our story were inaccurate, despite the information having been confirmed by the Rio. We aren’t dealing with MENSA members here.

Anyway, layoffs are painful for everyone involved, but are sometimes necessary to improve profitability, especially when financial goals aren’t being met. Labor is often the biggest expense in a company, casino or otherwise, so staffing can take a hit.

Combined with the executive layoffs reported previously (30 managers, plus 50 in maintenance and public areas recently), Rio has let go of an estimated 8% of its workforce since taking over from Caesars Entertainment.

Our heart goes out to the individuals affected, and here’s hoping running a tighter ship will give Rio a fighting chance to make its promised comeback.

The post Rio Hotel & Casino Lays Off Dozens More Staff appeared first on Vital Vegas.

A local’s favorite, Suncoast, is undergoing a massive overhaul, and the casino’s new sportsbook opens Sep. 4, 2024.

We are not a fan of “waiting” until things are “open.” We are more of a “sneak preview” person (along “with” being a “gratuitous quotation mark” person, “obviously”). So, we grabbed some pics of the new Suncoast sportsbook while it’s still behind curtains.

We’ve also got the skinny on what else is going on at Suncoast. There’s an ass-ton and there will be a quiz.

Suncoast is about 10 minutes west of the Las Vegas Strip, in Summerlin. Summerlin is also home to Red Rock Casino, and we’re pretty sure Boyd Gaming is making a substantial investment in Suncoast because Red Rock has set a new bar for locals casinos and Boyd wants a piece of that action.

Sportsbooks aren’t big moneymakers for casinos, but they’re an amenity appreciated by locals.

Suncoast has done its sportsbook right, gleaning winning aspects of other sportsbooks (both its own places and competing casinos), bringing together all those best practices in its new venue.

One of the trends Suncoast follows is making the most of automated kiosks, rather than human bet-takers. The existing Suncoast sportsbook has more than a dozen live betting windows, the new sportsbook has four.

Suncoast went all-in on its videos screens and capability. I’m sure they’ll add all the technical specs in their upcoming news release, but we’re pretty sure Suncoast’s video display, at 1,700 square feet, is second only to Circa’s in sheer girth.

Seating is ample, with booths and individual seating, providing a lot of flexibility for groups and reserved tables during big sportsball events.

The bar is beautiful, and there are 26 video poker machines in the sportsbook, with 18 at the bar itself.

Suncoast’s sportsbook sits where the showroom used to be, one of several moves and renovations in the works.

A new high limit slot room opened in the former buffet space. A new food court is coming to that part of the casino as well. Boyd knocked it out of the park with its food court at Fremont casino, and it would be great to see a similar mix of offerings at Suncoast. The fast food offerings are a smidge on the underwhelming side at this point, Subwaywise.

The existing sportsbook will close up when the new one opens, and that will become a new bingo room (relocated from the second floor, that space will now be used for meetings and conferences).

Here’s the current sportsbook. We figured you might want to say goodbye.

Bingo doesn’t make much for casinos, either. There’s a reason there are no bingo rooms on The Strip.

Here’s a rendering of what’s coming to the previous sportsbook space.

Also planned is a glorious, 70-seat center bar. We don’t know what it will be called, but it will be right in the center of the casino (the current casino video poker bar is going away).

Suncoast’s bowling center is also getting a revamp, along with the front desk and hotel check-in area (rendering below).

The excellent and relatively new William B’s Steakhouse at Suncoast should get more love than it does, as it’s a Strip-quality steakhouse, just with better prices. It’s what we call an “aspirational” offering at Suncoast, a venue for a customer it may not exactly have yet. (Ditto the sportsbook and fancy new center bar.)

The best off-Strip casino steakhouse you haven’t visited yet could very well be William B’s Steakhouse @SuncoastCasino. Giving Joe’s a run for its money for top banana cream pie in Vegas. Definitely returning for happy hour. pic.twitter.com/vXUtl59cFw

— Vital Vegas (@VitalVegas) March 30, 2024

Boyd Gaming tends to be careful with its financial investments (the company is still experiencing institutional trauma from the closure of Stardust and the failed Echelon project, now the site of Resorts World), but the locals market continue to deliver strong results, and Boyd is doing its revamp thoughtfully and with solid execution to-date.

The company expects all the Suncoast upgrades to be completed in mid-2026.

When it comes to changes at locals casinos, even for the better, you can’t do anything too quickly or dramatically. It’s jarring. Regulars will have freak-outs. This isn’t a happy-go-lucky tourist crowd, they’re unforgiving and aren’t shy about expressing their grievances. Some grinders have still not emotionally recovered from casinos changing from coins to paper vouchers. They like what they like. Locals casinos are extensions of their own homes.

Sometimes, when locals casinos move slot machines around, they post signs telling regulars where their favorite machines went. We are not making this up.

Suncoast’s new sportsbook opens to the public at 11:00 a.m. on Sep. 4, 2024.

Big thanks to Suncoast for not booting us out following our “security breach.”

Update (9/4/24): Here’s more from the aforementioned news release following the opening on the Suncoast sportsbook. “”The stadium-style sports viewing experience includes one of the largest high-resolution, wrap-around LED screens in the Las Vegas Valley, measuring over fifteen-and-a-half feet tall, with a surface area of more than 1,700 square feet. The sportsbook features deco-inspired channel-tufted booths, rows of contemporary lounge seating, a 130-foot-long sports ticker and an 18-seat bar offering commanding views of the impressive video wall.”

The post First Look Inside Suncoast’s New Sportsbook, Plus Renovation Details appeared first on Vital Vegas.

Tropicana finally has an implosion date: Oct. 9, 2024 at 2:30 a.m. (or late night on Oct. 8).

We almost said “much-anticipated,” but it doesn’t really feel that way. The closure of Tropicana barely caused a ripple in the Vegas zeitgeist, the reaction to the implosion date has been pretty much the same: Meh. You know, an anti-climax, something with which we are definitely not familiar.

That said, the implosion of what’s left of Tropicana (the majority of the demolition has already been done) is the first big Vegas implosion in nearly a decade, so let’s make some boom, already.

Both the Tropicana towers will be brought down at the same time, the 22-story Tropicana Club tower and 22-story Paradise Tower.

The last Las Vegas casino implosion was August 16, 2016, when the final tower of the Riviera came down. Implosions have fallen out of favor in recent years, with demolition companies preferring to dismantle buildings instead.

Despite happening at 2:30 a.m., the Trop implosion will be accompanied by the requisite hoopla, including a drone and fireworks display.

Why is the Tropicana being imploded at 2:30 a.m.? Several reasons. While hoopla is part of the experience, the early morning timing has to do with minimizing disruption.

The Trop is very near the airport, so there’s that. There are myriad safety factors involved with an implosion (asbestos has been mitigated, but there’s still debris and dust clouds involved), so the smaller the crowd, the better. And don’t get us started about traffic snarls.

Yeah, sort of a mixed message. This is mostly for the media, not the general public. This is a lot about P.R.

The Tropicana implosion is being presented as a joint “commemorative event” with the A’s and Bally’s Corporation, operator of the Tropicana.

Both these entities have made some big promises for what’s next on the Tropicana site, but skepticism abounds.

Neither entity has shown they have the financial wherewithal to fund their whimsical projects.

The A’s confirmed they have no financing for a ballpark in July 2024.

Bally’s Corp. made headlines by being acquired by its largest stockholder, Standard General, but that has zero to do with financing a Las Vegas resort. There was a glimmer of hope when Gaming and Leisure Properties (the owner of the Tropicana land) agreed to pay for a Bally’s project in Chicago, but to put it in plain English, Bally’s is tapped out.

Essentially, they’re paving Paradise Tower to put up a parking lot.

The plan, even prior to the A’s debacle, was the demolish Tropicana. It has always struggled, and it was time to bid the old girl farewell.

Here’s an overview of Las Vegas casino demolitions.

So, what’s the best way to view the Tropicana implosion? From your couch at home, of course!

If you insist upon seeing the implosion for yourself, the best views of the Tropicana implosion will be from hotel rooms surrounding the site. The hotels include MGM Grand, New York-New York, Excalibur and Luxor.

We’re fairly sure all those room rates have surged since the implosion date announcement was made.

Serendipity has graced the tiny Oyo, as it’s right next to Tropicana and will provide a front row seat for the implosion. In fact, Oyo was ahead of the curve and is doing an implosion promotion.

Hilariously, Oyo is doing an implosion promotion. “This September, it's all about who can earn the most base points. The top player will score an explosive prize: $1,500 in free play and a VIP hotel stay on the night of the big implosion! But that's not all—our Top 3 contenders… pic.twitter.com/SUvRpTNfC2

— Vital Vegas (@VitalVegas) August 23, 2024

In our experience, casino implosions are a lot like sex. It’s a lot of hype, then 15 seconds of entertainment and lots of frustration trying to figure out how to get home afterward.

The implosion of the Tropicana will be an old-school Las Vegas event, but the real fireworks will start once the dust clears. The A’s and Bally’s deals are likely to go sideways and it could be years before anything of use will be built on the Tropicana site.

We’ll be there when it all blows up.

The post Tropicana Implosion Scheduled for Oct. 9 appeared first on Vital Vegas.

A source says Delano at Mandalay Bay is getting a rebrand by W Hotels.

W Hotels, owned by Marriott International, appears to be set for taking over the Delano tower as it did a tower at SLS. That didn’t go well, but Delano is in a much better location and the owner doesn’t do coke or whatever. Long story.

If W Hotels follows its previous pattern, Delano would be called W Las Vegas, with its own distinct amenities, vibe and marketing database.

We were the first to share Delano would be rebranded, but at the time, we weren’t informed to what. Or possibly who.

Delano is being rebranded, so there’s that.

— Vital Vegas (@VitalVegas) July 4, 2024

We haven’t been given a specific timeline for the rebrand, but we’d feel just terrible if we ruined all the surprises.

There has been some speculation Delano would be rebranded to Mirage (it closed July 17, 2024, in case you missed the memo), but that didn’t make a lot of sense because the Seminole tribe will retain the right to use the Mirage brand until Hard Rock Las Vegas opens in 2027.

It’ll be the one with the bigass guitar tower and will be hard to miss.

Why would MGM Resorts, operator of Mandalay Bay and Delano do a hotel-within-a-hotel deal with Marriott? Chances are MGM Resorts believes it can do better with a partner with the aforementioned database.

Today we learned YESCO replaced more than six miles (32,116 linear feet) of neon lighting with RGB LED strips on Mandalay Bay and Delano. It looks so cool, we aren't even mad. Look for red, white and blue on July 4. pic.twitter.com/KbNzNs0clR

— Vital Vegas (@VitalVegas) June 25, 2024

Fontainebleau, for example, is suffering mightily because it has neither a hotel or casino database to speak of. It’s ugly.

The “boutique hotel” concept isn’t new for MGM Resorts, as Four Seasons already operates inside Mandalay Bay.

Resorts World has Hilton as a partner, and offers three brand experiences: Crockfords, Conrad and Hilton. Don’t look at us, it’s all pretty baffling.

Caesars Entertainment has a Nobu Hotel. Park MGM has NoMad.

Before the SLS deal, W Las Vegas was announced in 2005 as a condo-hotel and casino project off the Strip at Harmon and Koval (on the land where F1’s headquarters now sits). It was intended to be a joint project between Edge Resorts and Starwood. The project was scrapped in 2007.

There were also rumblings of a W hotel on the site of the Wild Wild West casino, owned by Station Casinos. The Wild Wild West has since been demolished. Read more on Wikipedia, the site that single-handedly kicked the lucrative encyclopedia industry to the curb in 2001.

Anyway, there’s been no official announcement of the rebrand of Delano, but we share what we hear so the Las Vegas Review-Journal has something to do (stealing, confirming and later “breaking the story”).

Prior to becoming Delano (pronounced like Franklin Roosevelt’s middle name), the hotel was called THEhotel, possibly the worst hotel name in history. Other than SLS. But whatever.

This means speculation continues about if, and how, MGM Resorts might use the Mirage brand down the road. We love the name, but using it for a hotel or tower would lead to a lot of confusion and rideshare driver road rage. Better to just let Mirage fade into the ether. Or maybe slap it on an app or something, as Boyd has done with its Stardust brand.

What if this rumor doesn’t pan out despite coming from a well-placed source? Delano doesn’t have a casino, so who cares?

More to come.

The post Rumor: Delano to Get a W Hotels Rebrand appeared first on Vital Vegas.

The comeback story of the off-Strip Rio has been building momentum in recent months, but has not been without challenges.

As Rio faces some business headwinds, the resort has laid off about 30 manager-level employees over the last couple of weeks and there have been a number of departures by top executives in the past few months.

This does not, however, appear to be “Fontainebleau Part Deux.” We’ve got all the details.

Fontainebleau made the wrong kind of headlines when a slew of high-ranking executives were fired or quit before and after the resort opened. The reason was reportedly chaos, internal conflicts and copious head-butting. (We should know, we reported it.)

The executive churn at Fontainebleau has quieted as cooler heads have prevailed, the resort got a seasoned President, Maurice Wooden, and also parted ways with a key contributor (a/k/a shit-stirrer) to the turmoil.

Rio’s recent manager lay-offs do not appear to stem from a toxic culture, but rather business reality and over-staffing.

We asked Rio about the 30 managers let go, and received this official response: “We proactively expanded our workforce while taking over operations from Caesars Entertainment in Q4 2023. As the resort undergoes extensive construction and remodeling, we now have a better understanding of the staffing levels Rio Las Vegas needs to provide guest service and operational efficiency. We deeply appreciate the unwavering commitment and diligence of all our team members and extend our heartfelt gratitude to those directly affected by the adjustments.”

First, let us say Rio’s transparency is rare and refreshing in Las Vegas, even with the requisite massaging of the message. Nobody likes laying people off and nobody wants their dirty laundry aired.

Second, we poked around for more drama, but could find none. We would cue the sad trombone, but it’s already in use for the people laid off.

Rio is basically dealing with the post-Caesars operations takeover and getting real about the resort’s current business levels.

Rio is going to have its job cut out for it for the foreseeable future, as the casino’s new owner and operator, Dreamscape, has to overcome several years of a declining public perception of the resort due to the neglect of its tenant. It made no sense for Caesars Entertainment to invest in the resort when it didn’t own it and was handing off operations to Dreamscape. Dreamscape bought Rio in 2019, but Caesars continued to operate it. The operations hand-over happened on Oct. 2, 2023.

It’s no coincidence the manager-level layoffs are happening in the summer, as seasonal slowness is no doubt playing a part in the disappointing business results. Typical summers are slow enough, but in recent weeks, Las Vegas has consistently hit temperatures comparable to that of the average pottery kiln.

Beyond the recent layoffs, it’s also worth noting Rio has lost a number of top executives since it took over the reins of the resort from Caesars.

Rio recently lost its president, Trevor Scherrer, who stepped down due to a medical issue. Patrick Miller is the new President and CEO.

Rio also lost its Chief Financial Officer, Janice Fitzpatrick. She left in Feb. 2024.

Also no longer at Rio is the Vice President of Finance, Jason Ansuini. He left Rio in May 2024 and is now Vice President of Analytics at Resorts World.

Patrick Hoefler stepped down from the position of Rio’s Vice President of Food & Beverage in June 2024.

Rio’s Vice President of Sales position has been vacant for several months following a departure.

We’ve heard several other high ranking executives have moved on as well since Dreamscape took over operations from Caesars Entertainment, but our LinkedIn search hand is cramping up, frankly. You get the picture.

From what we can tell, these executive departures were related to other opportunities, they weren’t pushed out or part of any cost-cutting initiative.

So, are these staffing reductions red flags or just necessary “adjustments” in the course of business?

If we knew, we would not be spilling tea in a stupid blog, we’d be owning and operating a Las Vegas casino. If we did, it would be smoke-free, no paper straws would be allowed and escorts would be welcome following a thorough screening process, if you get our drift.

Why smokeless? Look at the difference in the color of the refreshed ceiling tiles at Rio compared to the old ones after decades of smoke.

In our opinion, Dreamscape has been making all the right moves with Rio. The loyalty club is one of the best in Vegas, although it doesn’t get as much attention as it should.

Rio recently opened Luckley Tavern, a restaurant taking over the All-American Grill space, and Lapa Lounge, formerly iBar in the hotel’s registration area. The new food court slays, as the kids say. Rio’s exterior looks amazing, and room renovations are ongoing.

Rio’s location is likely to continue to give Dreamscape headaches, and it’s going to take time for people to realize how far Rio has come in its recovery from the Dark Times.

Even Rio’s Wine Cellar is back (see below), and all the hotel room door locks have been changed (to address public concerns about thefts) and the pool complex has been completely overhauled.

No, the Carnival World Buffet and “Masquerade Show in the Sky” aren’t coming back, but nobody’s perfect.

Unfortunately, Rio’s eyes were bigger than its stomach on the staffing side. A similar situation occurred with Atomic Golf, a Top Golf-like attraction at The Strat, after it opened.

We trust Dreamscape is making its decisions thoughtfully and strategically, and the result will be a leaner, meaner operation that gives Rio the best chances of success.

Perhaps the best testament to how far Rio has come is we have started visiting again, and we tend to hate everything.

The Lapa Lounge has quickly become one of our favorite video poker bars in Las Vegas, and the food court (sorry, food hall) has several destination concepts (drooling at you, Tender Crush and Tony Luke’s).

Not to mention the carpeting is the most Las Vegas carpeting in the known universe.

The road to its former glory hasn’t been pothole-free for Rio (lots of Las Vegas hotels suffer from the midweek blues), but we’re optimistic about the future, especially if an MLB or NBA team takes them up on their offer of 22 acres on the Rio site for $1 to build a stadium.

Give it a minute.

The post Rio Rebound Hits Snag: 30 Manager-Level Staffers Laid Off appeared first on Vital Vegas.

Bellagio has submitted plans for a major expansion of its retail and restaurant offerings.

The expansion project is being referred to as “Project Mojave.” Mojave is a shortened form of “Hamakhaave,” which means “beside the water.” Which we definitely knew off the top of our head.

The new addition to Bellagio will run from the hotel’s main entrance, along the walkway to Las Vegas Boulevard. The fountains won’t be affected, so don’t freak out.

The plans submitted to Clark County (wherein the Las Vegas Strip sits) get into the granular details of the project.

We’d give you more details about Project Mojave, but the county’s Web site is FUBAR at the moment. We like to leave some sloppy seconds for the Las Vegas Review-Journal to confirm, anyway.

We did get our hands on some renderings, so there’s that.

The architect on the project is Marnell Architecture, a well-known entity in these here parts. Marnell Companies was founded in 1982, and the company has had its hand in a number of major Las Vegas casinos. Marnell Co. built the Rio, Mirage and, yes, Bellagio (technically, Marnell Corrao Associates).

Essentially, MGM Resorts is going to monetize what is currently idle space.

The bridge from Las Vegas Boulevard to the Bellagio’s main entrance used to have a people-mover. Now, not so much.

There’s a good amount of foot traffic along this stretch that isn’t being exploited, so this new project looks to remedy that.

Here’s a look at the existing floor plan, featuring a lot of not much.

Here’s what’s in store with Project Mojave. In the vernacular of retail design and development, it’s a “metric shit-ton more.”

The shortest distance between two points is a straight line, but a straight line isn’t always the most beneficial to the bottom line.

Guests will now be herded through a collection of retail shops, along with at least five new food and beverage venues (orange in the images, above and below).

It looks like a 10,000-square-foot venue will be on the rooftop overlooking The Strip and the ever-glorious Bellagio fountains, so LFG.

Once the county gets its act together, we should know more about a potential timeline and budget for the project. The over/under is $80 million. We’re betting construction won’t start until after F1 in November 2024.

In May 2023, MGM Resorts bought 1.62 acres of land between Bellagio and The Cosmopolitan for $54 million. The Mojave Project proposal makes it clear why MGM was ready to fork over big bucks for the tiny sliver of land—infrastructure and access for deliveries.

Here’s one more angle of Project Mojave at Bellagio.

The paperwork we’ve seen doesn’t show a name for what this Bellagio enhancement will be called, but we’re rooting for “Bellagio Interactive and Immersive Experience Collective Promenade and the Such.”

Fingers crossed.

The post Bellagio Plans Major Retail and Restaurant Expansion appeared first on Vital Vegas.

The abandoned St. Regis hotel tower at Venetian is the stuff of Las Vegas legend.

Construction of the once-named St. Regis Residences at Venetian stalled in 2008 when the economy went south. A decade ago, Sheldon Adelson—bajillionaire and former CEO of Las Vegas Sands—claimed the tower would be completed, eventually. Then, there was a whole lot of not much.

Recently, we’re hearing chatter the project is ramping up again. This time, not as a condo, but a boutique hotel, possibly Tao Hotel Las Vegas. There are signs it’s happening, don’t shoot the messenger.

The St. Regis story is long and winding and mostly sad.

Every so often the scaffolding of the structure gets a new wrap, as it did in 2022.

Most visitors don’t even know the unfinished tower is up there, unless the Sun is at just the right angle.

We are often asked about the project, as well as the two cranes on the building. The cranes have been on the roof since the resort renovated its pool complex in 2018. That project is long completed, but the cranes stayed.

Our construction friends always said you don’t keep $3 million in cranes up there for no reason. The cranes are owned by Venetian, temporary cranes are usually leased.

We’re confident we know the reason the cranes are still there. The new owners of Venetian, Apollo Funds are working with Tao Group to build a hotel-within-a-hotel. Think Four Seasons at Mandalay Bay or Nobu at Caesars Entertainment or Nomad at Park MGM (but successful).

As mentioned, our money’s on the name being Tao Hotel Las Vegas. There’s even Tao Hotel e-mail list you can sign up for to stay abreast of all the news.

Telling is the fact Tao Group announced Tao Hotel Orlando in 2022, and is expected to open in 2025. That’s right. Tao is getting into the hotel business, and Las Vegas could very well be next. Rockwell Group, a well-known entity in Las Vegas, is the designer for the Florida project.

Tao Co-CEO Noah Tepperberg said, “A hotel was the natural evolution for us.” Maybe that should’ve been plural.

Beyond the lingering suspicion sparked by the cranes (there are rules about how long cranes can sit up there without use or activity), our friend @JamesinLasVegas has been keeping an eye  on Venetian and he spoke with a contractor involved with some of the work being done.

He was told they removed the existing large marquee because it would “block the Strip view from the future rooms of the new tower.”

The contractor said the tower project will start in mid-2025, and will offer high-end hotel rooms.

How is Tao involved? We’ve heard from two sources they’ll be the operator of this new offering.

Tao Group is a huge nightlife and hospitality company that acquired Hakkasan in 2021. Tao Group Hospitality was, in turn, acquired by Mohari Hospitality for $550 million in 2023.

The folks behind the Sphere at Venetian, Sphere Entertainment Co. (formerly Madison Square Garden Entertainment) owned a 67% stake in Tao before selling that stake to Mohari Hospitality. Tao Group has a multi-year agreement with MSG Entertainment to provide consulting and marketing services to the Sphere at Venetian.

Which is all to say it’s no great leap to speculate Tao Hotel Las Vegas could be a thing.

Honestly, we don’t care all that much about who’s name is on the damn thing (at one time it was supposed to be the Marco Polo Tower at Venetian, with 1,100 rooms planned), we just want it to be done.

Venetian, Apollo and Tao have all been mum about the project, but the visible signs of activity are confirmation something is afoot. This wasn’t just a matter of a screen upgrade or two. The changes have intention and those intentions seem to be setting the stage for another hotel tower at Venetian.

Barring any twists or turns in the economy, of course. What could possibly go wrong?

The post Rumors Heat Up About Completion of Venetian’s Third Hotel Tower appeared first on Vital Vegas.

Poor Lexi Las Vegas Hotel. It’s the red-headed stepchild of Las Vegas hotels, the little engine that couldn’t.

The Lexi used to be the Artisan. You know, the hotel which at one time you could buy out (yes, the entire hotel) for $7,500.

The Lexi Las Vegas Hotel is up for sale. Again.

It seems like only yesterday the owners of the Lexi, Pro Hospitality Group, were touting the fact they were investing $3 million (it turned out to be $4 million) in a renovation. They bought the Lexi for $11.9 million in 2022.

Pro Hospitality Group has, it seems, gotten what’s referred to in hotel ownership circles as a “reality check.”

We inquired about the asking price for the Lexi, but have not gotten a response yet. Information provided by the realty company is “confidential,” so we’ll definitely share it when we hear back. That’s one of the things that makes quotation marks so awesome.

Here’s the listing for The Lexi.

Some of the items in the listing are glorious.

The Artisan was mainly known as being the location of swingers parties and porn shoots. The Lexi real estate listing includes this on-brand nugget, “A variety of branding options are available which will allow the asset to better penetrate the competitive set.” Some jokes write themselves.

The Lexi talks a lot about how it’s adult-only and cannabis-friendly.

From the Lexi Web site, “High expectations for a forward-thinking hotel are met in fourth-floor rooms outfitted with cutting-edge air filtration technology. Reserve an elevated room to enjoy cannabis friendly amenities.”

We’re pretty sure if The Lexi is making any revenue at all, it comes from snacks sold through the in-room minibars, if you get our drift.

Anyway, if you’ve been looking for a tax shelter and always wanted to buy a Las Vegas hotel (sorry, no gambling license), have at it.

If downtown is more your style, Downtown Grand is also for sale, in the $180 million range. We’re sure they’re open to haggling.

The post Lexi Las Vegas Hotel is Up For Sale (Again) appeared first on Vital Vegas.

Fontainebleau is throwing one of the most expensive Hail Mary passes in Las Vegas history. You know it’s a big deal if we’re using a sports metaphor.

The resort’s owner, Jeffrey Soffer, is reportedly buying a five acre parcel across the street from the $3.7 billion Fontainebleau for $112.5 million.

We know why, and you’re about to learn what the phrase “good money after bad” means. Gird your loins.

So, Fontainebleau is gorgeous. We say this a lot. It’s a miracle the place opened. It sat idle for two decades.

The resort’s original developer, Jeffrey Soffer, partnered with Koch Real Estate Investments and opened Fontainebleau on December 13, 2023.

In the first quarter of 2024, Fontainebleau lost $400,000 a day. The lesson: Never open a casino on the 13th of the month.

Anyway, it’s been a rough road for Fontainebleau. The most visible signs of distress are 1) the emptiness of the casino, 2) the loss of a dozen key executives. In its first six months of operation, Fontainebleau lost (either through firings or resignations) two presidents, COO, CMO, CFO, Chief People Officer, two senior VPs of casino operations and others.

It’s been quieter at Fontainebleau recently, for a couple of reasons. One, Maurice Wooden is president. Two, a havoc-wreaker—Peter Arnell, Chief Brand and Design Officer for Fontainebleau Development—is no longer in the picture.

Then, out of the blue, it’s reported Jeffrey Soffer is buying part of the former Riviera site.

This was surprising news for a number of reasons.

In 2023, the LVCVA sold 10 acres of the Riviera site to a company called 65SLVB for $125 million. 65SLVB is Brett Torino and Paul Kanavos. These are the folks behind Harmon Corner and 63 at The Shops at Crystals. Retail developers.

Soffer is buying (subject to rubber stamp approval blah-blah-blah from the LVCVA in July 2024) the “back” five acres of the parcel, in other words, the part not on Las Vegas Blvd.

If you do the math, Brett Torino and Paul Kanavos are looking like geniuses, because they recouped nearly their entire investment by selling the least valuable part of their parcel. They still have plenty of room to build some boring retail down the road. Sorry, “jaw-dropping, immersive shopping experience that will change the face of human commerce and echo for an eternity.”

So, why is Fontainebleau spending so much money on a parking lot?

The answer is high roller suite inventory.

The plan is for Fontainebleau to build a bridge to a new structure that will cater to elite gamblers. Think the Mansion at MGM Grand and Fairway Villas at Wynn. If you don’t recognize those places, it’s because we normal humans can’t afford to stay there. Even if you have the money, the highest end suites in Las Vegas can’t be reserved by commoners, they are given away free to whales.

Fontainebleau is spending (wasting) $112.5 million (a shit-ton) because they’re convinced (deluded) the reason they haven’t been able to steal big players from other casinos (Wynn) is they don’t have the suite product to attract them.

They haven’t said that’s the reason for buying the parcel, but that’s the reason.

Fun fact: Justin Timberlake was paid $6 million to perform at Fontainebleau’s opening night gala. That night, he stayed at Wynn. Awkward.

At the moment, Fontainebleau is scrambling to solve for a simple question: “Why isn’t this working?”

The answer is almost as simple: Las Vegas isn’t Miami, “build it and they will come” isn’t tethered to reality. Oh, and no foot traffic.

Speaking of droning, we’ve droned on endlessly about Fontainebleau’s lack of casino and hotel databases, along with the fact Fontainebleau has zero experience in the casino resort business.

The massive losses have, of course, resulted in finger-pointing and chaos.

If your resort isn’t drawing foreign gamblers, fire the person responsible for going after them.

Well-regarded whale hunter Marika Cardellino (Sr. Vice President Latin Europe Middle East) has been fired from Fontainebleau, we’re told.

— Vital Vegas (@VitalVegas) June 9, 2024

If gaming revenue isn’t meeting unrealistic expectations, build villas!

As the kids say, oy.

Q1 2024: $62 million casino revenue, $57 million hotel revenue, $88 million in food and beverage, $2 million retail, $8 million miscellaneous revenue, so total net revenue was $192 million. Comps were $17 million, $1 million a day payroll, royalty fee of $4 million and brand fee of $1 million, total operating expenses, $222 million, for a three month loss of $36 million.

That’s without paying interest on the resort’s financing, as that doesn’t start until mid-2025.

In Q1, net revenue of $191.6 million fell short of budget by $67.6 million, or 26%.

If things don’t change, Fontainebleau is set to lose about $500 million this year.

Or as one source put it…

Source who knows things believes Fontainebleau will be out at Fontainebleau within a year. Koch's stake is 75%, interest payments start mid-2025. Bookmark this Tweet, or whatever the kids are doing now.

— Vital Vegas (@VitalVegas) June 7, 2024

It’s clear many of the decisions being made at Fontainebleau aren’t being made based upon “facts,” but rather optimism with a smidge of ego.

Jeffrey Soffer is really successful, so he’s certainly not dumb, but let’s just say this latest move doesn’t seem particularly well thought through. What do rich people do when they encounter problems? They spend more money to fix them.

Soffer said in a statement, “Almost six months into operations, we are already seeing positive and encouraging results for Fontainebleau Las Vegas.”

It’s unclear if Jeffrey Soffer has actually seen the financials for Fontainebleau. We have.

Did he see the part about “all other verticals suffering from lower-than-budgeted occupancy,” about 50% lower than projections in January and March 2024?

The intern at our paper of record dismiss the challenges at Fontainebleau as just “needing more time for the resort to get its footing.” Mostly because the Review-Journal doesn’t have actual journalism anymore.

The parcel being purchased by Fontainebleau bumps up against another parcel we’ve heard will be a significant development from Siegel Group. The site includes Siegel’s Bagelmania. And the indoor skydiving place. It all adds up to the yellow thing below.

While we don’t care all that much about bagels, we are very interested in seeing the damn rendering already for the project that will include a casino.

Soffer’s purchase of an adjoining parcel raises lots of questions. Will Fontainebleau be around long enough to see the parcel developed? If they build it, will the whales come? Has Jeffrey Soffer lost his damn mind? Whose money is paying for the parcel (is it all Fontainebleau Development money, or is their contribution 25% like the hotel)? Is the purchase of this parcel like buying new deck chairs for the Titanic? Is $112 million being wasted, or can they make it up on the back end?

Of the parcel. Because it’s the back parcel. Please keep up.

Also on the horizon for Fontainebleau: Pending Wynn lawsuit for alleged poaching. Maurice Wooden license approval drama. Insider trading troubles gaming regulators may look into if they wake up from their ongoing naps. Jeffrey Soffer top secret wedding at Fontainebleau, possibly on July 4 weekend. (Get on confirming that scoop, Johnny Kleptometes! We can’t do everything for you.) Rollback of paid parking, probably. Better advertising and social marketing soon. Tier matching extended. Awesome nachos at the Tavern. One of the most beautiful casinos in the history of Las Vegas.

Bottom line: Glorious drama worthy of a Las Vegas casino. The suspense is terrible, we hope it’ll last.

If you read that last sentence and thought Willy Wonka rather than Oscar Wilde, you probably went to public school in Nevada. Yeah, we said it. Like anyone who doesn’t work in P.R. at Fontainebleau reads all the way to the end of our stories, anyway.

The post Fontainebleau Hail Mary: Struggling Resort to Buy Site Next Door for $112.5 Million appeared first on Vital Vegas.

The marketing of Fontainebleau Las Vegas has been an unmitigated disaster, contributing to the resort’s losses of hundreds of thousands of dollars a day.

The blame would typically fall on casino marketing and advertising personnel at the resort, but in this case, it falls squarely on a guy named Peter Arnell, Chief Brand and Design Officer for Fontainebleau Development.

Industry chatter is Fontainebleau is parting ways with Arnell, paving the way for marketing (including social marketing) and advertising with an actual clue. We haven’t heard back yet from Fontainebleau about this rumor, but assuming it’s true, it’s the best news out of Fontainebleau since it opened, a glimmer of hope for the ailing Strip casino.

We’ve been playfully poking at Fontainebleau’s marketing since before the resort opened.

Getting information about the $3.7 billion casino was like pulling teeth. The resort chose to go for a “big reveal,” a strategy that hasn’t been effective since 1974.

Once the casino opened, it was clear the hand guiding the brand and its marketing wasn’t local.

New York-based Peter Arnell was at one time a revered designer and branding executive. He has been involved with some of the world’s biggest brands, including Chrysler, Pepsi, Reebok, Donna Karan and others.

Arnell has been intimately involved with Fontainebleau Las Vegas due to his longtime relationship with Jeffrey Soffer, Chairman and Chief Executive Officer of Fontainebleau Development. Here’s more about the partnership.

What most people don’t know is Peter Arnell is universally disliked inside Fontainebleau, and has been responsible for a lot of the friction leading to executive firings and resignations. There have been a lot.

The main reasons for the chaotic culture at Fontainebleau? Simply put, unrealistic expectations and meddling.

Recently, the toxic culture at Fontainebleau has been less toxic. Partially, because Maurice Wooden has taken over as president. Licensing approval to be determined, but Wooden is a hands-on leader and a people person with a solid track record in the industry. Additionally, because Arnell’s involvement has made a difficult task (operating a casino resort without hotel or casino databases) a virtually impossible one. As he’s stepped away, things have settled a bit.

Here’s cue card advocate Arnell (for some unknown reason) on a New Year’s Eve broadcast touting Fontainebleau. We actually know the reason: Ego. But just watch. Oh, and please ignore how quiet the crowd is when legendary Paul Anka asks if they remember “Diana.”

The sound you hear is the flushing of dollars, a common pattern at Fontainebleau, especially in the realm of marketing and advertising.

Fontainebleau has wasted millions of dollars on incomprehensible outdoor advertising, all with baffling flourishes that fail every exam in Advertising 101 exam. Behold, possibly the worst font since Comic Sans. Comic Sans would actually be more legible.

Advertising 101 QoD: If you saw this billboard, what would you think Fontainebleau is? pic.twitter.com/uV0sNLrWWi

— Vital Vegas (@VitalVegas) April 1, 2024

One of the more baffling aspects of Fontainebleau’s horrible marketing is the fact the resort had a world-class Chief Marketing Officer, Shane Smith. Smith resigned. Why? Because he was competent at his job, and he wasn’t allowed to do it. The reason: Peter Arnell.

Virtually everything associated with the marketing of Fontainebleau is predicated on a bad assumption: That people know what Fontainebleau is or that they give a shit.

Fontainebleau might be a thing in Florida, but the name means virtually nothing in Las Vegas. Everything about Fontainebleau’s advertising exudes arrogance. The “build it and they will come” attitude has failed miserably.

We are still scratching our head about this.

Once upon a time… In celebration of Fontainebleau’s next step in expanding their illustrious legacy to Las Vegas, filmmakers Thierry Demaiziere and Alban Teurlai of @falabracks have directed the first of three short films. Visually captivating, the film weaves together striking… pic.twitter.com/r9gaTxi3hJ

— Fontainebleau Las Vegas (@fblasvegas) December 9, 2023

This masturbatory video had about 200 views until we publicly ridiculed it.

One of the biggest miscalculations of Fontainebleau is believing this brand (or its history) matters to any Las Vegas visitor choosing a place to stay or eat or gamble. Market the resort, it's amazing. The clock is ticking. https://t.co/H8cVSSUVVO

— Vital Vegas (@VitalVegas) May 10, 2024

What is this Memorial Day message intended to mean, exactly? Does Fontainebleau want the public to associate its brand to cringing and head-scratching?

Three cheers for the red, white and Bleau!#MDW #MemorialDay #FontainebleauLasVegas #ForeverFontainebleau pic.twitter.com/6BjHfyYESl

— Fontainebleau Las Vegas (@fblasvegas) May 27, 2024

Arnell’s sensibility and strategies are holdovers from a different time. They are antiquated and the evidence of that is easy to see: The performance of Fontainebleau Las Vegas. There’s nobody at the helm, and the culture at Fontainebleau, prior to now, hasn’t fostered question-asking or disagreement with the decisions being made. Don’t get us started about Paul Anka as celebrity endorsement partner, legendary status or not.

Arnell may not have been personally responsible for the baffling advertising, but he signed off.

Here’s another ad. “Dare to Stay.” We dare you to guess what in the hell this woman is doing?

Srsly, WTF is going on at Fontainebleau? pic.twitter.com/JBMLBosy0Q

— Vital Vegas (@VitalVegas) January 29, 2024

The truth is Fontainebleau can’t afford to keep screwing around and dumping its resources into the abyss. The resort is reportedly losing $400,000 a day.

Fontainebleau losing $400,000 a day doesn’t seem sustainable. Interest paid until mid-2025, but damn. https://t.co/Qr3Qzv8GBi

— Vital Vegas (@VitalVegas) May 24, 2024

Fontainebleau is reportedly spending $108,00 a day on advertising. That is physically painful to type.

What now? Let casino marketing professionals do what they do. Start with the logos. They are terrible. How bad? Fontainebleau had its main logo on the building, off center, for several months but removed it after we publicly badgered them to do so. Yes, we’re taking credit.

Next, kill the lofty, pretentious, confusing tone, especially in social media. It’s not just forgettable, it’s actively repellant. Yes, Fontainebleau wants to be Wynn, but Wynn has established its brand and doesn’t even do much social marketing anymore. It doesn’t have to.

The bottom line: Get real. Modern marketing is about authenticity.

The most room for improvement is in Fontainebleau’s digital marketing. Find a tone that’s relevant to human beings. Stop talking about yourself non-stop. Be social (interact). Provide information or entertainment that’s of value and shareable. Lighten up and have fun.

We can’t build Fontainebleau’s marketing from scratch, but we suggest starting with a simple mission. Just show people how fantastic this place is.

Will that save Fontainebleau? No, not with its current players. Our guess is Fontainebleau will be out of the picture within a year. Koch, which owns 75% of Fontainebleau will run out of patience, and the resort will clean house and rebrand, in our humble opinion.

To be clear, while we sometimes seem to be criticizing Fontainebleau, we aren’t. We love the place and think it’s amazing. The choices made by leadership are often disappointing, and it’s hard to watch such a stunning resort shooting itself in the foot voluntarily every single day.

Peter Arnell should be thanked for his service and shown the door. His reported abrasive personality, lack of self-awareness and inability to accept the input of experienced people in the casino resort realm (hotel-casinos aren’t like regular hotels) have dug Fontainebleau’s hole deeper, a hole smoldering with the smoke and ash of talented individuals who are no longer at the resort, but who could have given it a fighting chance.

Let’s hope this is the last we hear of this ash hole.

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