Caesars Palace will turn over one of the property's oldest hotel towers to Nobu Hospitality, which will renovate the 180-room building into a boutique hotel within the confines of the Strip resort.
In a deal to be announced today , the Centurion Tower at Caesars will undergo a year-long transformation into the Nobu Hotel Las Vegas.
The renovation will also include development of a Nobu-themed restaurant and lounge facility at the base of the hotel tower, encompassing 9,500 square feet near Caesars' Appian Way retail area.
Caesars Palace will operate the hotel and employ the staff for Nobu Tower, which will include a separate check-in area and small lobby.
"Caesars has become a big campus," Caesars Palace President Gary Selesner said of the property that currently has 3,300 hotel rooms and suites. "The Nobu Hotel allows us to diversify the epicenter of Caesars Palace to appeal to a different segment of the market."
Nobu is a New York-based hospitality company operated by Chef Nobu Matsuhisa, Meir Teper and actor Robert De Niro. The company has 26 restaurants in five continents, including Nobu at the Hard Rock Hotel in Las Vegas.
Nobu Chief Executive Officer Trevor Horwell said the company was looking for the right opportunity to move into the luxury hotel business. Having its first Nobu-themed hotel on the Strip and as part of Caesar Palace signifies a unique concept.
Horwell hopes the boutique property will be the first of several Nobu hotels.
"We're not looking to have hotels in excess of 200 rooms," Horwell said. "Nobu today is a lifestyle brand. We want to be in the luxury hotel market with something different and diverse."
Selesner said Caesars Entertainment Corp. will pay for the renovations to Centurion Tower, which opened in 1970. He said a budget is still being determined but a company statement called the project a multimillion-dollar renovation.
The Nobu Tower, when completed, will include 16 suites and a penthouse among the 180 rooms. All the units will be styled with Nobu's Japanese theme. Guests in the Nobu Tower can order room service from Nobu's culinary team.
Selesner believes the Nobu Tower units will have the highest per-night prices at Caesars Palace.
"Our goal is to create a product that will attract first-time visitors to Caesars Palace," Selesner said. "We believe it will be a much different demographic."
Selesner said having a boutique hotel within Caesars Palace allows guests to feel like they are staying in a smaller property, but can still visit other amenities of the resort, including the casino.
Noted architect and designer David Rockwell, who created the interiors at CityCenter and other Las Vegas projects including restaurants and theaters, is overseeing the design for the Nobu Hotel. Rockwell has designed several Nobu restaurants.
Selesner became familiar with Nobu when he ran the Hard Rock Hotel and the company opened its first restaurant at the property. Horwell said the Nobu at the Hard Rock Hotel would remain open because the two restaurants will appeal to different Las Vegas market segments.
Nobu operates multiple restaurants in New York and London.
"The two locations won't compete," Horwell said. "We're adding an additional 200 seats to the market."
The agreement comes as Caesars Entertainment is moving forward with plans to complete the 660-room Octavius Tower. The outside of the hotel tower was completed in 2009 but the interior was delayed when the economy slipped and tourism sagged.
Caesars Entertainment recently announced it was seeking $400 million in financing, which would be used to build Project Linq, a retail, dining, and entertainment corridor on the Strip, and the Octavius Tower.
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