Expect to pay at Nugget’s new tower

Don’t expect the Golden Nugget to slash room rates just to fill its new 500-room tower with warm bodies at any price, the hotel-casino’s top executive said this week.

Tilman Fertitta, Houston-based Landry’s Restaurants chairman, chief executive officer and majority shareholder, said the property has not dropped its rates to compete with other properties and doesn’t plan to do so.

“We’re not going to drop rates just to turn dollars,” Fertitta said. “I’d rather not have all the bodies. It’s got to be profitable dollars for us to rent a room.”

The Golden Nugget’s new $150 million hotel tower opened Friday morning, and was largely sold for its first weekend. The 25-story tower includes four penthouse suites, 70 junior corner suites and standard rooms 20 percent larger than standard rooms in the other towers.

In fact, though, rooms at the new tower aren’t going for what they were priced at even a month ago when the opening date was announced.

In mid-October, the hotel was pricing rooms at $142 per night for opening weekend.

The hotel now is advertising rooms in the new Rush Tower on its Web site for an average of $89 per night, while travel Web site Expedia.com has rooms listed for an average price of $102 per night.

Fertitta conceded that the economic downturn is making it difficult for the hotel to attract the type of customers the property wants.

“The Wynn and the Bellagio aren’t getting the customers they thought,” Fertitta said. “If they’re not getting the customers they want, I can guarantee you I’m not getting the customer I want. That’s just life and a cycle we’re in right now. It’s something we’re all going to work through. Hopefully, it will all work out.”

The Golden Nugget’s addition is the first new hotel tower to open downtown since former Golden Nugget owner Steve Wynn built the South Tower in 1989.

It brings the Golden Nugget’s room count to 2,417, the largest downtown.

Las Vegas Mayor Oscar Goodman, who will attend a grand opening celebration for the tower at 4:30 p.m. Monday, praised Landry’s for investing in the downtown market, which struggled for years even before the economic downturn.

Landry’s has spent more than $300 million on improvements at the Golden Nugget since buying the property in 2005 for $295 million in cash and debt assumption.

The Rush Tower has its own porte cochere and includes $1 million in landscaping for the entrance on First and Carson streets.

In addition to the tower, the Golden Nugget is adding a new 200-seat Chart House restaurant, three new retail shops and new casino space.

The expansion added nearly 100 new jobs, spokesman Justin McVay said, mostly in the restaurant and shops.

Bill Lerner, a principal at Union Gaming Group, expects the new tower to have little effect on the local gaming market.

“As great as it’s going to be for that part of the market, I don’t think it grows the market,” Lerner said. “I don’t think you drive new volume, visitation into downtown because of a new hotel tower.”

But Roy Smolarz, a New York City-based finance expert who was an adviser on the Binion’s sale in 2008, said other downtown operators are welcoming the new tower because it focuses new attention on downtown.

“It is a different situation than what is coming on line and the concerns about CityCenter flooding (the market) with 4,000-plus rooms,” said Smolarz, who focuses on investment banking, real estate, gaming and leisure industries as managing director for the firm Dominick & Dominick. “There is a critical need for additional quality in the Fremont Street corridor. Downtown truly needs state-of-the-art rooms.”

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

ad-high_impact_4
Business
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like