The SLS Casino, the latest major establishment on the Las Vegas Strip, is changing hands after less than three years of being operational. The new owner is the Meruelo Group, a company that holds a portfolio of businesses, including the renowned Grand Sierra Resort and Casino in Reno, Nevada.
Meruelo not disclosing SLS’s price tag
Both casino representatives declined to disclose the sale price, but did confirm that a sale is in progress. According to their provided schedule, the deal is expected to conclude in the third quarter, provided it receives approval from the Nevada Gaming Control Board (NGCB).
VitalVegas not only broke the story but also suggests that the change in management might lead to a name change. The frontrunner for the new name is likely familiar–Sahara.
SLS radically transformed the former Sahara Casino with renovations worth $415 million, resulting in a large, high-end casino with a boutique ambiance.
SLS a name with some negative connotations
The present name, SLS, originates from a whole brand of hotels and hospitality, including the prominent SLS Hotel in Beverly Hills. Sam Nazarian, the person responsible for this brand, contributed to the development of the SLS Casino as a minority shareholder.
Nazrian encountered difficulties after failing a drug test conducted by the NGCB. He also confessed to involvement in an extortion scandal before his tenure with the casino. Consequently, he disposed of his company shares in October 2015, less than 12 months following the property’s inauguration.
It makes sense to revert back to the old brand or choose a new identity now that Nazarian and the current owners are gone.
SLS Casino struggled financially since it opened
In its inaugural year, the SLS did not manage to make a profit. The property boasts upscale restaurants from famed chefs such as Jose Andres, emulating other SLS properties. Nevertheless, the casino encountered challenges in the food and drink sector. Despite management’s efforts to revamp the buffet and bring in new restaurants, these changes did not yield significant results.
2015 was a challenging year for the casino due to negligible profits and increasing debt. The financial comparison with 2016 remains uncertain. A new law now permits privately-owned casinos such as SLS to withhold their financial information.
Earlier this year, the company decided to revamp its management by appointing two new executives from Aliante, Terry Downey and Robert Schaffhauser. They assumed daily operations at SLS in January. The aim was for the duo to decipher the formula for SLS’s success, mirroring the triumphs of upscale casinos like Aria or Cosmopolitan Casino.
The responsibility of that task now lies with the new owners, and achieving it may require more than just a name change.
