While bankruptcy was bad news for the Fontainebleau Las Vegas, a $2 billion project that was eventually sold to billionaire Carl Icahn and abandoned, it was good news for the Plaza Hotel in downtown Las Vegas, which will be enjoying many of the Fontainebleau’s furnishings, purchased for pennies on the dollar[1]. “It’s a complete remodel,” said Tony Santo, chief executive of PlayLV, the Plaza’s operator. “It’s a big investment in the Plaza and a big investment in downtown.” Santo concluded that “we are really lucky” that the Fontainebleau was left unfinished, or the struggling Plaza probably would not have gotten its $35 million makeover. Ultimately, the project included a budget of less than $2 million to outfit all the rooms in the Plaza. And when the renovation is complete, Santo projects that the new Plaza will be able to charge – and get – nearly twice the rates that the old Plaza did[2].
Interestingly, Santo is interested in raising the Plaza to midrange ratings for amenities and price, rather than shooting for the stars. He wants a mix of old and new clients, so that by courting a customer “more interested in a quality product” there will be more profits associated with food, beverage and gambling. However, the Plaza will also retain old elements – and hopefully some of its old, affordable appeal – by retaining a “traditional, cheerful and a little fun, but not overhearing and stuffy” look.
Would you stay at the new Plaza?
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[1]http://www.kolotv.com/southernnevadanews/headlines/Plaza_Hotel_In_Downtown_Vegas_Getting_35M_Lift_124476609.html
[2] http://www.lvrj.com/business/plaza-gets-lift-from-failed-fontainebleau-124396613.html
June 24th, 2011 at 8:50 AM
If repudiating debt (bankruptcy) is the “key to success in the hospitality industry” why is it not the key to underwater homeowners getting their lives back on track?
June 24th, 2011 at 4:21 PM
Another man’s garbage is another man’s treasure. It will be sad if awesome Fontainebleau’s furnishings goes into waste. Carl has been unlucky a few times. He let go of his Ford shares. Look at Ford now. Now, Fontainebleau goes bankrupt. Maybe, his cash is running thin. He is in too many things at one time.