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\n\tSLS Las Vegas on the corner of Las Vegas Boulevard and Sahara Avenue as seen Wednesday, Aug. 6, 2014. The company spent $415 million to remodel the former Sahara Hotel. The resort is scheduled to open later this month. <\/p>\n
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\n\tSLS Las Vegas on the corner of Las Vegas Boulevard and Sahara Avenue as seen Wednesday, Aug. 6, 2014. The company spent $415 million to remodel the former Sahara Hotel. The resort is scheduled to open later this month. <\/p>\n
\tBy HOWARD STUTZ
\n\tLAS VEGAS REVIEW-JOURNAL
\n\tAfter the final hand of blackjack was played and the last customers were ushered out of the Sahara on May 16, 2011, operator Sam Nazarian taped a handwritten note to the hotel-casino\u2019s padlocked front doors: \u201cBe back soon!\u201d<\/p>\n
\tStanding there 39 months later, Nazarian gazed toward the remodeled casino and resort now called SLS Las Vegas \u2014 a $415 million, 18-month transformation of the 59-year-old Rat Pack-era property into a modern hotel-casino built for the audience of today.<\/p>\n
\tThe SLS Las Vegas will be christened the Strip\u2019s newest resort in a lavish Friday night VIP reception, with the property unveiled to the public shortly after midnight Saturday.<\/p>\n
\tNazarian, 39, is CEO of Los Angeles-based SBE Entertainment, a privately held nightclub, restaurant and hotel company. He led the purchase of the aging Sahara in 2007 and ran the property until it became \u201cno longer economically viable.\u201d<\/p>\n
\tWhen Nazarian posted his message, he wasn\u2019t exactly sure how or when the Strip resort would make a comeback. Las Vegas was just starting to shake off the Great<\/p>\n
\tRecession. The casino business remained challenged, and credit markets were still slow to lend.<\/p>\n
\t\u201cA lot of people counted out Las Vegas as a city,\u201d Nazarian said recently. \u201cA lot of people counted us out.\u201d<\/p>\n
\tStockbridge Real Estate Holdings CEO Terry Fancher was more direct during the SLS Las Vegas gaming license hearing Aug. 6 in Carson City. The San Francisco-based investment fund, which owns 90 percent of the 1,620-room hotel-casino, had written off its investment during the real estate collapse.<\/p>\n
\t\u201cIt\u2019s a miracle we\u2019re here today,\u201d Fancher said. \u201cWe could have lost this project so many times.\u201d<\/p>\n
\tSCARY RIDE<\/p>\n
\tThe property\u2019s resurrection was made possible by a combination of $300 million raised by investment firm J.P. Morgan and $115 million raised through EB-5 financing, which gives foreign nationals a method of obtaining a green card in exchange for an investment in the U.S.<\/p>\n
\tThe 39-month ride was far rougher than the Sahara\u2019s 60-second \u201cSpeed\u201d roller coaster.<\/p>\n
\t\u201cI always knew this moment would happen. I just didn\u2019t know how,\u201d Nazarian said during an opening preview walking tour of the resort.<\/p>\n
\tBefore SBE and Stockbridge, the Sahara had four different owners. It was built in 1952 by Milton Prell, who sold the casino to real estate developer Del Webb nine years later. Paul Lowden bought the property in 1982 and sold the resort in 1995 to casino pioneer William Bennett, who died in 2002.<\/p>\n
\tOver the years, the Sahara was best known for its entertainment. Ray Bolger, the scarecrow from \u201cThe Wizard of Oz,\u201d was the opening night performer. Entertainment legends such as George Burns, Buddy Hackett, Don Rickles, Ann-Margret, Bobby Darin, Johnny Carson, Louis Prima and Duke Ellington appeared in the showroom.<\/p>\n
\tIn 1964, The Beatles stayed at the Sahara when they performed two shows at the Las Vegas Convention Center.<\/p>\n
\tWhen SLS opens, all that will remain of the Sahara is the building shell, though tributes to the former property are found in images on custom carpet throughout.<\/p>\n
\tThe SLS has been reconfigured to include a 56,000-square-foot casino with a sports book operated by William Hill.<\/p>\n
\tThe nine restaurants and three nightlife venues include many SBE signature brands, including Umami Burger, the Mediterranean-themed Cleo, Japanese-themed Katsuya, 800 Degrees pizza and The Sayers Club entertainment lounge.<\/p>\n
\tThe three former Sahara hotel towers, all built in different decades, have been reconfigured under new names \u2014 Lux, World and Story \u2014 and are aimed at different markets: the luxury customer, the tour and travel market and the younger crowd looking for a \u201cVegas weekend.\u201d<\/p>\n
\tWidely known Los Angeles retailer Fred Segal has seven locations inside the property.<\/p>\n
\tSLS Las Vegas hired 3,400 employees.<\/p>\n
\tNazarian, the creative force behind the resort, credited the team he put together \u2014 SLS Las Vegas President Rob Oseland, acclaimed designer Philippe Starck, Gensler Architects, Penta Building Group, and others \u2014 with bringing the property back.<\/p>\n
\t\u201cIt\u2019s really through the sheer will of our team that we\u2019re making this happen,\u201d Nazarian said.<\/p>\n
\tNOT THE COSMO<\/p>\n
\tSLS Las Vegas is the Strip\u2019s biggest debut since The Cosmopolitan of Las Vegas in 2010, so comparisons are obvious.<\/p>\n
\tLike SLS, the Cosmopolitan has glitzy dining and nightlife venues as well as stylish rooms and suites, all targeting a trendy customer base.<\/p>\n
\tBut in four years, the Cosmopolitan never turned an annual profit.<\/p>\n
\tIn April, German-based Deutsche Bank sold the Cosmopolitan to a subsidiary of the Blackstone Group, a multinational private equity investment firm, for $1.73 billion, far below the $3.9 billion it cost to build.<\/p>\n
\tCredit Suisse gaming analyst Joel Simkins said any comparison would be unfair.<\/p>\n
\tThe SLS Las Vegas was \u201ccapitalized at a fraction\u201d of the Cosmopolitan\u2019s cost. Also, SLS Las Vegas controls all aspects of the hotel-casino, including the food and beverage and nightlife venues, which are the \u201chighest margin segments\u201d of the property.<\/p>\n
\t\u201cThe Cosmopolitan opened at the worst time and tried to fill 3,000 rooms without a database,\u201d Simkins said. \u201cThe biggest question for SLS is getting the spillover from its hotel, restaurant and nightlife guests into the casino.\u201d<\/p>\n
\tUnion Gaming Group analyst Robert Shore said he doesn\u2019t believe the SLS will mirror the Cosmopolitan.<\/p>\n
\tHe said the casino will challenge other nightlife properties for customers and could also expand the number of visitors to the city.<\/p>\n
\t\u201cThe growth in the market is being led by a younger, international, relatively affluent crowd who comes for the nightlife,\u201d Shore said. \u201cThe SLS will be uniquely programmed to specifically go after this market segment.\u201d<\/p>\n
\tSBE Entertainment is one of the nation\u2019s fastest-growing hospitality companies with revenue totaling $500 million annually, according to one industry publication.<\/p>\n
\tIn the past few years, SBE opened SLS hotels in Los Angeles, Beverly Hills and Miami\u2019s South Beach. Deals for new SLS hotels have been signed for the Middle East, New York, the Bahamas, Philadelphia and Seattle.<\/p>\n
\tSBE operates 14 different nightclub brands and 13 restaurant concepts that total 55 outlets with 50 more in development. In Las Vegas, SBE has operated the Hyde Lounge nightclub in Bellagio since 2012.<\/p>\n
\tThrough its operations, SBE Entertainment has built a customer database of 5 million patrons, many from Southern California.<\/p>\n
\t\u201cThe Southern California market is the biggest feeder market into Las Vegas,\u201d Shore said. \u201cThe ultra-success of Hyde is an example of SBE\u2019s prowess in operating and appealing to the nightlife segment.\u201d<\/p>\n
\tSLS Las Vegas is not counting on just the SBE database for customers.<\/p>\n
\tThe hotel is part of the Preferred Hotels & Resorts guest loyalty program, which includes 450 independently-owned hotels and resorts.<\/p>\n
\tAlso, SLS Las Vegas is affiliated with Curio, a new independent hotel collection through Hilton Worldwide. The deal allows the property to tap the 40 million-member Hilton HHonors customer loyalty program.<\/p>\n
\t\u201cThose type of deals give SLS Las Vegas a huge advantage going forward,\u201d Simkins said.<\/p>\n
\tThe property also plays up its proximity to the Las Vegas Convention Center. The remodel made easier access to the SLS monorail platform, and convention guests will be offered special monorail discounts.<\/p>\n
\tFOCUS ON GAMING<\/p>\n
\tAs for the casino, which will have nearly 800 slot machines, 74 table games and a high-limit gaming area, Oseland\u2019s involvement comforts Simkins and other analysts.<\/p>\n
\t\u201cHe has a strong reputation around town with a lot of gaming knowledge,\u201d Simkins said of the executive who previously worked for Wynn Las Vegas.<\/p>\n
\tGaming is obviously a major feature in any Strip resort.<\/p>\n
\tShore said the Cosmopolitan failed because patrons didn\u2019t have to pass through the casino to reach popular nightlife venues.<\/p>\n
\t\u201cThe energy of the nightlife scene never seeps onto the gaming floor,\u201d Shore said.<\/p>\n
\tThe SLS gaming floor is center stage, surrounded by restaurants and nightclubs to create energy throughout the building. Though smaller in floor area from its Sahara days, the casino feels more open because some older walls were removed.<\/p>\n
\t\u201cThe casino is front-and-center of the overall experience,\u201d Oseland said. \u201cI really believe we\u2019re utilizing the space wisely, and we\u2019re providing significant price points and value that will attract the gaming customer.\u201d<\/p>\n
\tOseland also wants to see locals in the SLS, and the property plans restaurant and gaming promotions specifically designed for that market. Oseland said the slot machines \u201cwill be loose,\u201d and the gaming experience akin to a locals casino.<\/p>\n
\tEarlier this month, SLS marketers sent mailers to thousands of Southern Nevada residents, offering special benefits by enrolling in the SBE Entertainment loyalty programs.<\/p>\n
\tNazarian, who purchased a home in Summerlin last year, said SLS will be easy for locals to reach.<\/p>\n
\t\u201cWe may be on the north end of the Strip, but we\u2019re at the center of Las Vegas,\u201d Nazarian said.<\/p>\n
\t\u2018SEDUCTIVE COCKTAIL\u2019<\/p>\n
\tLike the Sahara\u2019s evolution into the SLS Las Vegas, Nazarian has remade himself since he first approached the Bennett family about buying the fading hotel-casino in 2006.<\/p>\n
\tThen a budding film producer, Nazarian left Hollywood to focus on SBE. A native Iranian who fled with his family before the country\u2019s 1979 revolution, he quickly gained a reputation for bringing together leaders in various fields to collaborate on a project.<\/p>\n
\tThat shows in SLS Las Vegas.<\/p>\n
\tStarck, who designed the Delano in Miami and Le Meurice in Paris, oversaw all aspects of the Sahara makeover. He compared SLS Las Vegas to a \u201cseductive cocktail\u201d with a range of flavors.<\/p>\n
\t\u201cIt\u2019s strong and sparkling with millions of bubbles of life, stories, adventures and surprises,\u201d he said.<\/p>\n
\tJames Beard Award-winning Chef Jose Andres is introducing two new restaurants to SLS Las Vegas. He upgraded his Bazaar Steak brand to Bazaar Meat, SLS\u2019s high-end eatery. Andres is also opening Chinese-themed Ku Noodles.<\/p>\n
\tMusician and actor Lenny Kravitz added \u201cdesigner\u201d to his accomplishments by creating four penthouse suites; one each in the Story and World towers, and two in the Lux tower.<\/p>\n
\tNazarian brought Stockbridge into the picture eight years ago. The company has $8 billion in real estate holdings.<\/p>\n
\t\u201cMr. Nazarian is a visionary,\u201d Fancher said. \u201cWe wouldn\u2019t be here without him.\u201d<\/p>\n
\tNazarian won\u2019t have much to do with the SLS casino, however, until he is licensed by state gaming regulators. For now, Fancher and Oseland run it.<\/p>\n
\tWOW FACTOR<\/p>\n
\tThe past is important to Nazarian. Near his private office hangs an artist-enhanced photo of the iconic Sahara. Making something old feel new again appeals to him.<\/p>\n
\t\u201cIt\u2019s what we do with all our master-plan projects,\u201d Nazarian said. \u201cWe make them look like they were originally intended to be from the ground up.\u201d<\/p>\n
\tMuch of the SLS layout will remind former Sahara customers of the old resort, though much has changed.<\/p>\n
\tThe hotel lobby is still off the Paradise Avenue entrance, though it will have a modernized front desk and will feature the Monkey Bar and The Perq, a coffee and snack location.<\/p>\n
\tEscalators that connected the casino with the second floor buffet space and convention area in the back of the building were moved near the lobby.<\/p>\n
\tSahara\u2019s famous House of Lords gourmet room is now the high-end gaming area; the pool was rebuilt to include a center bar connected by bridges.<\/p>\n
\tFoxtail, an SBE-branded nightclub next to the pool, has garage door-style walls that open for a day club, while parking garage walls that surround the pool are lined with giant television screens.<\/p>\n
\t\u201cWe kept the integrity of the location, but we created new energy,\u201d Nazarian said.<\/p>\n
\tAnd that entrance where Nazarian made his promise to return no longer features 1980s-era tile and carpet. Instead, the lighted floor runs through a multitude of colors, and the walls and ceiling are mirrored for what Nazarian calls the \u201cultimate \u2018selfie\u2019 moment.\u201d<\/p>\n
\tHe hopes customers are so \u201cwowed\u201d by what they see they will have to capture the moment on cameras and smart phones.<\/p>\n
\tBYE BYE BURRITO<\/p>\n
\tThe \u201cSpeed\u201d roller coaster is long gone, as are the last two reasons most people found to visit the old Sahara: the NASCAR Cafe and its famous six-pound burrito challenge.<\/p>\n
\tThe SLS offers a more varied menu.<\/p>\n
\tA Bavarian-style outdoor beer garden was added along the Strip, connecting The Sayers Club and the sports book, which includes a sports bar and Umami Burger.<\/p>\n
\tThe Griddle Cafe, a branch of the famous Los Angeles eatery, adjoins the main casino walkway.<\/p>\n
\tOseland said the layout creates \u201cneighborhoods\u201d throughout the property.<\/p>\n
\tThe area that once housed the NASCAR Cafe includes Bazaar Meat and connects to Life, a nightclub created from the former Sahara showroom.<\/p>\n
\tNazarian said the $7 million Life will compete with other Strip clubs built for three and four times as much.<\/p>\n
\t\u201cWe had unique ideas,\u201d Nazarian said. \u201cSome of the best ideas come when you don\u2019t have money.\u201d<\/p>\n
\tThe same low-cost-but-high-concept approach is seen in the casino, where the ceiling is now exposed to allow for artistic designs and features.<\/p>\n
\tThe center bar features a five-sided, three-dimensional entertainment experience with images created by a South Korean firm.<\/p>\n
\tAfter eight years on the Strip, Nazarian is ready for the next chapter.<\/p>\n
\t\u201cWe\u2019ve learned from the market,\u201d Nazarian said. \u201cWe will offer value. Our prices will be approachable.\u201d<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
SLS Las Vegas on the corner of Las Vegas Boulevard and Sahara Avenue as seen Wednesday, Aug. 6, 2014. The company spent $415 million to remodel the former Sahara Hotel. The resort is scheduled to open later this month. By…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-7883","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=7883"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7883\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=7883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=7883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=7883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}