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sls owners sam talks about vip treatment and perks

Discussion in 'Casino Industry & Development' started by paperposter, Jul 18, 2014.

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  1. paperposter

    paperposter VIP Whale

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    http://hauteliving.com/2014/07/king-hearts-sam-nazarian/508727/#slide-3

    "VIPs can expect to be treated the way SLS and SBE always treat our VIPS. There’s a separate entrance, a separate lounge and elevator banks, a 24-hour concierge — not just in Vegas, but anywhere they go..."
    Read more on becoming one of our VIPs in the latest issue of Haute Living
     
  2. Gargamel

    Gargamel Low-Roller

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    I wish him luck since I would like to see more competition on the strip.
    The black and white striped hallway with red carpet looks like it's from a Tim Burton film.
    The second to last paragraph made me laugh. Probably more at the writer than Mr. Nazarian.
     
  3. paperposter

    paperposter VIP Whale

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    the fact that he said that he thinks becuase its an all in one place, food nite club pool that people wont need to go anywhere else he will get people to go there ahe will do good makes me laugh , if thats the case the cosmo should be making billions, best niteclub , best location, great hotel rooms, outdoor pool concert series, concert venue inside, great resturants stk one of the highest grossing rersturants , blue ribbion sushi.

    my gut says we will be seeing tmz vegas version shortly as he gives rooms away to his celebutard friends to get free press thats how his nite clubs in la did it. party paris,do a bump with lindsay,knock up a krrapdashin nite ,i can see the promos now.
     
  4. Kickin

    Kickin Flea

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    Seriously I hope his casino is successful but she was slobbering over him so much in that over-the-top puff piece that I feel like I need a shower after reading it.
     
    Last edited by a moderator: Jul 18, 2014
  5. UTE

    UTE Plastics

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    Nazarian has demonstrated an uncanny ability to read and reach his target demographic. Literally, every project this guy has launched has exceeded expectations. Does this absolutely ensure he'll score this time? No. But, it sure does cause one to consider the odds in his favor.

    I'm going to be at the opening of SLS. I've seen a few of Nazarian's other properties (in LA) and it will be interesting to see if this one measures up to them.

    Bill
     
  6. paperposter

    paperposter VIP Whale

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    right now the rooms are already being discounted. i think if hes thinks becuease its an all one he will succed hes delusional,

    it will help in 2 years when all the land around him is built that will help but also drive competition that he doesnt need and cant afford.
     
  7. smartone

    smartone VIP Whale

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    To use a phrase from Steve Wynn... isn't a big part of the overall equation his "capital structure"? I've not heard to what extent this project may or may not be leveraged. That'll make a BIG difference in being in the black or not... won't it?
     
    Last edited: Jul 19, 2014
  8. Kickin

    Kickin Flea

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    I agree. Looking at a little I was surprised by one major thing - Nazarian's group (sbe Las Vegas) only owns 10% of this. The other 90% is owned by Stockbridge, a real estate investment firm. Maybe this was common knowledge but I just assumed that even if he had partners he still owned a much bigger share given his name is all that's ever mentioned. I'm sure he has the management and operating agreement for the place as well as all the branding, but he's a small owner.

    They contributed a significant amount of equity upfront ($329mm) but it looks like almost all of it went to paying off the old mortgage on the property. Everything else has been debt financed ($300mm construction loan, over $150mm junior debt, other?). Moody's and S&P both rate it well into junk (B3, B-) and expect it to be leveraged by 7-9x EBITDA after the first year of operations. That is high but manageable and not out of the norm for most strip casinos. The harder thing for them might be interest coverage which is expected to be only 1.5x and that's assuming occupancy numbers comparable to the rest of the strip. If they don't meet those numbers they have little cushion left to service debt. They have an interest reserve to cover about 7 months after it opens and fortunately they have a big enough backer who could inject more equity if needed. The ADR projections they use are around $130-$140 which is close to half the ADR of a place like Wynn. So I don't think they are being too rosy eyed.

    Here's an interesting little nugget - Nazarian (who is Iranian) took advantage of the government EB-5 visa program to raise the second $150mm in financing. Its a program that allows foreign investors to literally buy a US green card and bypass the normal application process. The conditions being that they create American jobs and a make a certain minimum investment. Normally its a $1mm minimum but since Vegas has high unemployment its considered a "Targeted Employment Area" and the minimum is only $500k. So he was able to raise $150MM from hundreds of foreigners who just wanted a green card quickly and would give him very generous loan terms. They are getting negligible interest but also getting Gold VIP Founder's Cards to get VIP service at all sbe properties and of course the US green card. He raised this through a separate company and then lent it to the Stockbridge/SBE JV that owns SLS Las Vegas.
     
    Last edited by a moderator: Jul 19, 2014
  9. paperposter

    paperposter VIP Whale

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    yup hes builds nite clubs , hes a the front man , the face to bring people in, the salesman, he doesnt have the cash on hand same as the owner or front man for brooklyn bowl he has a anglel to named james dolan that how they can lose money for a few years and keep going
     
  10. smartone

    smartone VIP Whale

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    Great post... THANKS! So informative!!!
     
  11. Joe

    Joe VIP Whale

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    Once again I admit I'm not a Strip person, but I read the article...where the hell is the place?
     
    Christmas
  12. paperposter

    paperposter VIP Whale

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    sahara and las vegas blvd near the strat, the old sahara past Circus Circus on the way downtown
     
  13. Joe

    Joe VIP Whale

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    Oh, thanks!
     
    Christmas
  14. smartone

    smartone VIP Whale

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    You gotta check it out next trip Joe... they've done an amazing job, IMHO, on totally eliminating any "look" of the old Sahara, at least on the outside... they've yet to open, so haven't seen the inside.
     
  15. dutchvelvet

    dutchvelvet VIP Whale

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    Thanks Kickin for putting all that together.
     
  16. RockyBalboa

    RockyBalboa VIP Whale

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    Great post, Kickin
     
  17. paperposter

    paperposter VIP Whale

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    http://vegasseven.com/2014/07/23/queen-sbe-sets-court-sls-las-vegas/

    Chanell Oliver began her career in hospitality when she was 18, and aside from a yearlong stint helping Tao Group open Lavo in the Palazzo, she has been with SBE since its inception more than a decade ago. As the brand’s global director of VIP services, she has come a long way since cocktailing at the company’s first nightclub, Shelter. She recently helped open the SLS Miami and a slew of other SBE brands in South Beach. While many have dubbed Oliver “The Queen of SBE,” she is really more of a people’s princess, striving to instill a service ethos in her team so that all SBE customers “feel VIP.” We caught up with Oliver just as she arrived back in Las Vegas to discuss her role when SLS opens August 23.
    - See more at: http://vegasseven.com/2014/07/23/queen-sbe-sets-court-sls-las-vegas/#sthash.IERY51yZ.dpuf
     
  18. tex55

    tex55 Low-Roller

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    I hope SLS succeeds; we need more competition on the Strip. It might loosen up the comps; right now, we can only play Caesars and MGM off against each other.
     
  19. paperposter

    paperposter VIP Whale

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    cet vs mlife, vs cosmo wich will give anyone a room for any reason, trop is an easy comp, i have no idea about ti and dont do v/p but theres tons of options on the strip, i hope does well also but theres plenty of competition

    plenty of people switch to cosmo becuase they love the rooms and they dont have to give as much play

    people are putting in a 100$ in the slots and getting 2 free nites there , theres no logic to that place
     
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