All 3 properties were banking on Asian high rollers to be their big customers. There aren’t as many Asian high rollers as there used to be. In fact, Calvin Ayre questions if there are any Chinese high rollers around.
Regardless of the fact that gaming revenue accounts for less than half the revenue for Vegas Strip casino-resorts today concerns about high rollers are making it difficult for Resorts World and Alon. Lucky Dragon has a different set of financial concerns. Here’s more info:
This looks bad, but it doesn’t mean these properties won’t have any customers and won’t get built. Here’s a look at the non-Asian high roller customers for the 3 resorts.
Alon is being positioned similarly to Wynn. It’s an international luxury resort with a heavy focus on nightlife. Expect plenty of non-Asian high rollers (see initial plan here).
Resorts World is being positioned as a family resort. High rollers might be their biggest customer financially, but the majority of guests would be “regular people.”
Lucky Dragon is a 100% Chinese focused property. Everything evolves around Chinese culture. The scope of this project is smaller so they might not need as many VIP gamblers. Yes, that’s a reach. (See details on Lucky Dragon at Vegas.buzz)
The future of the north end of the Vegas Strip doesn’t look as bright today as it did just a few months ago. Hopefully these projects are able to move forward but it looks less likely as the Asian gaming market continues its downturn.
Among the early renderings included in the application are plans for two towers that would have a total of 1,100 rooms.
One of those towers would be about half the height of the Trump tower, located directly to the west.
There was also a full layout of the property, including where the water feature, nightclub and villas would be located.
Alon issued the following statement on Thursday:
“Alon Leisure Management, LLC is a new leisure and hospitality company with a focus on developing one-of-a-kind luxury resorts. The destination of the company’s first project, Alon Las Vegas, is strategically located on the Las Vegas Strip and will contribute to the revitalization of the market.
“Alon Las Vegas is a gaming resort being developed on the historic Frontier site. As the flagship destination, Alon Las Vegas will set the creative tone and operating tempo for the company’s developments.
“‘Central to our vision for Alon is the careful consideration, creative exploration and uncompromising execution of the resort experience. We are building a team of seasoned industry operators, entrepreneurs and global designers who bring a fresh, new approach to what we think the future of Las Vegas should be,’ said Andrew Pascal, founder, CEO & co-chairman of Alon Leisure and Alon Las Vegas.
“Alon is envisioned to include approximately 1100 guest rooms and suites and will provide a full complement of integrated resort offerings. The project will generate thousands of direct and indirect jobs for Nevada residents.”
The first renderings aren’t very exciting but you get a better picture when you look at other Crown casinos in Australia. Here’s a look at Crown Promenade in Melbourne. (Shout out to @Vespajet for the heads up!)
There isn’t much more information but you can watch the news clip from Fox below: