My concern with SLS

Good point on the monorail, that will definately help them draw from the main strip area.

 

Thank you "Doc".

 

I just think that Excalibur and Luxor need to go! To dated, with the "themed" hotel... JMO

 

Right--the higher end hotels are not waiting on people who walk the strip to stumble through the door and drive revenue. It may actually help SLS create the atmosphere they want because that WON'T be happening--those who wind up there will want to be there and know what to expect.

 

I'm not sure what the answer is but I think people tend to flock to things that are new. The question is whether people will want to go back. First impressions are always important.

Sometimes I wonder about the sanctity of the mid-strip. Because CET constitutes many of the mid-strip hotels, what happens if they have to change their business model? In particular, what happens if they stop the practice of giving away their rooms to basically anyone? A change in management or bankruptcy could easily change this model. Would it be beneficial to the Riveria, SLS, etc.?

 

i think a better question what will happen when the cosmo takes over and implements a real casino program and all the people getting free rooms stop getting them,right now the cosmo is giving rooms away to every to tom,dick and jane for no reason and there not meeting any certian gambling level to get those rooms, they will dry up.

cet is a differnt story they have so many rooms they can give away to very low level player week days rooms and still come out ahead the manage there inventory and adjust it to make sure all places get full.

theres a math formula that if they get u in there u will spend x number of dollars so its a win for them

 

SLS will get their foot traffic just like the Bellagio does. It doesn't matter where it sits or if you can see it from a vantage point. I can't see the Suncoast or the Silverton from the strip, but I still like going to both.

Some folks prefer higher end, some the mid to low end. Some folks like the north strip, some the south strip. Vegas appeals to all demographics.

 

bellagio get its foot traffic becuase its center strip and one of the most famous iconic hotels and lobbys in the world thanks steve wynn nothing like that has to do with the sls, totaly differnt crowd apples vs oranges

 

wait until Rock In Rio Vegas next year, place will be hopping.

 

but rock n rio is only a 2 week thing , yes the venue will be open with other stuff but still its only a 2 wek event and no hotel can survive on that , and they will price guage for the event and mgm will have the perks for the evnt as its part of there event.i think circus circus is the big winner and other mgm props as there will be so many tie in for mgm and rock n rio.

 

I'm just speaking to the diversity of Vegas, how there is something for everyone.

 

totaly thats whats great about vegas, but i still think sls without a gamblers data base to draw from and being so far down they will have hard time, i live here, there is over saturation going on right now with nite clubs and the audeince that the sls is targeting, except for holidays and weekends , its a tourist bonaza of were they want to party or play or stay.places are desperate till conventions pick up but for nite clubs theres only so many that can survive being open on weekdays and there just drawing people away from one another

 

SBE's Nazarian knows his target demographic. Critics have been saying for years that each of his new projects will fail - and he's consistently proven them wrong. Could this be the one time he blows it? Sure. There's always that chance. But, I'm saying his track record indicates failure is unlikely.

Bill

 

Foot traffic is certainly an issue, but given their lower costs of construction (debt load) than a new resort like the cosmo in the middle of the strip it's something they can overcome to be profitable.

 

I wonder how much the foot traffic actually helps a casino like Bellagio or its peers. I can see foot traffic being more important to most of the other casinos that have plenty of casual and economical dining, bar, and shopping options but I doubt a typical passerby coming in to check out the lobby just decides to grab a meal at Jasmine or buy things from Gucci and Fendi.

One of the things I like about Aria is that there is a lot less foot traffic than there is at other strip casinos. It feels like a bit of a refuge from the crowds when you're inside there. I think it would be a plus if SLS had that same vibe where most of the people who are there are there for a reason, not to just look around and escape the heat.

 

Exactly, the "strip wanderers" are NOT driving revenue at the higher end places, they are getting in the way of the actual guests who are willing to spend money. Bellagio is the poster child for this, and attracts a lot of complaints for being so crowded. The crowds are milling around, not playing/eating/drinking/spending. SLS will attract its own crowd and will benefit from the relatively small number of walk in gawkers its location suggests it will see.

 

i live right behind bellagio so i walk in all the time what they get from all the foot trafic from people taking pics of the lobby is slots players that throw random money in the machines and low level bj players that just site down for the hell of it.

also i cant begin to tell how packed all day and nite the chocalate store is and people by nick nacks just to say they where there so its win for them.

tour gruops all the time in there and still a big asian costomer in there. so its a plus.

i bet people see shows and grab a drink while seeing the place.if cosmo survives it could be like chandleir bar for hipsters

 

Bellagio has the big advantage of though of location. Just like the saying goes Location, Location, Location. Until the new MGM concert facility opens next year, SLS will be the only place on Sahara/Blvd.

While I agree that most of this board knows where it'll be, there are millions of tourists who don't bring a car, don't rent a car and won't walk down there. The monorail will help, but how much?

My point about hosts is so key though because what will separate SLS from Wynn, from Cosmo, from Aria? Will the gaming be so bad (low VP tables, 6/5 BJ) that locals will go in there only for the food/beverage? If so, that's a really bad sign.

 

Bellagio also has a big tourist draw because of their reputation. I'm quite sure that people head up there and stop at the bar or place a few bets just so they can say that they "gambled at Bellagio" or "had a drink at Bellagio". I don't think there are really any other casinos save for maybe CP that have that kind of name recognition. So I'd argue that Bellagio does benefit quite a bit from all the foot traffic, though that's something of a chicken-and-egg problem.

 

A lot of good points pro and con made so far.

The marketing strategy must be solid. They have to implement whatever they choose to do and see it through. They should be doing focus groups and polling the visitors of the city for what they want or what issues they place the highest values on. Maybe like survey's for departing passengers in the airport or something that can seize on the visitors thoughts and whatnot while still fresh in their mind.

The location isn't ideal so what can they do to overcome that and make me (and you and many others) say "I have to get down to SLS"?