The sale of the troubled SLS Las Vegas casino in Nevada finally concluded last month, and another transformation for the establishment could start soon.
Under new owner Alex Meruelo, initial adjustments were led by a change in general manager and a shift in demographic focus. Meruelo acquired SLS from Stockbridge Capital Group for an undisclosed sum. However, he revealed that he paid $100 million in cash and eradicated the casino’s estimated debt of $585 million.
Quick fixes for the Vegas resort
Paul Hobson, SLS’s new General Manager, described to the LA Times the impact of the first $100 million in renovations and upgrades. The initial changes involve brightening the dark casino interior and lowering the ceiling, a modification made by former owner Sam Nazarian to create a trendy, club-like ambiance.
“Hobson told the Times that they would prefer to present something more recognizable. He explained that by installing a more formal ceiling, they could create zones where people would feel more comfortable and lighter.
A new market for SLS?
Meruelo believes that marketing SLS to the vast Latino population in the wider Los Angeles area holds great potential.
I believe that the Hispanic market in Vegas and Reno has been neglected. However, this does not imply that my attention will be solely on the Hispanic market. As a proud Hispanic, I’m eager to also address other underserved markets.
The Grand Sierra Resort in Reno is also owned by Meruelo.
How Meruelo plans to make SLS popular in LA
Meruelo, a native of southern California, amassed his wealth through a plethora of ventures. He remains a business owner in the construction, banking, and food industries. Significantly, he also owns two Spanish-language TV stations along with two of the top three radio stations in Los Angeles.
Meruelo intends to market SLS directly to the Latino population through those media outlets. In 2016, this group represented over a quarter of the visitors from southern California to Las Vegas.
SLS should heed Lucky Dragon’s warning
For a cautionary tale, Meruelo simply needs to glance across Sahara Avenue to the unsuccessful Lucky Dragon property. This Chinese-themed property, which opened in 2016, was heavily focused on the Asian market.
The resort stopped operations and filed for Chapter 11 bankruptcy less than 18 months later. After defaulting on a $90 million loan, Lucky Dragon was faced with foreclosure.
Location, location, location
The harsh business landscape of the North Strip is exemplified by Lucky Dragon and SLS. The Fontainebleau, which failed, and the long-closed Resorts World projects remained vacant for many years until recent restoration attempts set them on the path for openings in 2020. (The Drew is the new name for the reopening of Fontainebleau.)
The All Net Arena project proposed for the area was given the green light by the county last year. However, there are few indications of any progress on the previous Wet ‘N’ Wild water park lot.
Image sourced from Shutterstock.com, captured by Kobby Dagan.
