XS, Hakkasan, Marquee and Tao were the top 4 nightclubs in America in terms of gross revenue in 2014. In fact, 7 of the top 10 grossing nightclubs and bars were in Vegas and 15 of the top 100. Not too shabby.
If you’ve ever wondered where to party in Vegas then here’s a good place to start. Below is a breakdown of all of the Vegas nightclubs and bars on the Top 100 list from Nightclub.com.
1. XS Nightclub, Encore 2. Hakkasan, MGM Grand 3. Marquee Nightclub, Cosmopolitan 4. Tao Nightclub, Venetian 6. Surrender Nightclub, Encore 9. Hyde, Bellagio 10. Lavo, Palazzo 17. Chandelier Bar, Cosmopolitan 18. Tryst Nightclub, Wynn 28. Chateau Nightclub & Rooftop, Paris Las Vegas 48. Ghostbar, Palms 55. Lagasse’s Stadium, Palazzo 66. Bond Bar, Cosmopolitan 67. Vesper Bar, Cosmopolitan 68. The Bourbon Room, Venetian
4 of the top 100 bars and nightclubs in America are at the Cosmopolitan. That’s not surprising because the Cosmo is my favorite bar on the Vegas Strip. Chandelier Bar (floor level) is one of my favorite bars to sip on a drink and hang out in all of Vegas. Last year they added video poker to this beautiful bar so you can get excellent comp drinks while you gamble. WIN!
What is surprising is that Chateau at Paris, Lagasse’s Stadium at Palazzo and The Bourbon Room at Venetian are in this list generating between $5 million and $15 million in 2014. To be honest I didn’t know Chateau was still open, I thought Lagasse’s Stadium was considered a restaurant and had no idea people went to The Bourbon Room en masse.
Hakkasan revenue seems to be ahead of the pack this year. This shouldn’t come as much of a surprise as Hakkasan is the largest nightclub with the most famous DJ’s and a marketing arm that will use landmarks like the Bellagio fountains to promote you (See Tiesto show).
Besides the percentage of overall revenue for nightclubs there isn’t much in the chart that’s a surprise. That said, it’s always interesting to see casino revenue examined in different ways.
I caught this quick video of a drone delivering bottle service to a waitress at Marquee Dayclub at the Cosmopolitan on the morning news today and was waiting for someone to share the video. Well, it’s finally made its way around the interwebs.
It doesn’t really look cool but it’s a different way for clubs to deliver drinks. New delivery methods of bottle service will be key in keeping the “Look At Me” generation interested in paying 20x+ the retail value for their booze.
It was really only a matter of time until drones were used for bottle service at nightclubs (or dayclubs). What do you think?
“When Will The Bass Drop?” really captures what a night at XS, Marquee or any other nightclub in Vegas has turned into. Clubs have changed in the past few years from places to dance and meet people to DJ concerts where they can be flipping eggs, playing MP3’s or maybe actually DJing.
The property’s (Cosmopolitan) average daily room rate of $273 topped other high-end properties. For example, Wynn Las Vegas and Encore reported ADR of $258, while The Venetian and the Palazzo reported a combined ADR of $211.
Hotel room prices in Vegas are very flexible because they fluctuate between prices being advertised to the public and what’s offered to existing customers through players clubs. So you’ll see a wide range of prices for any hotel room in Vegas.
The order of these hotels makes sense if you look at their popularity by younger customers who are a little less discerning when it comes to price. If you’re dropping $1,000 for a bottle of Grey Goose at XS or Marquee why not spend the extra money to crash at those hotels too.
This is good news to me because The Palazzo is one of my favorite places to stay in Vegas for a lot of reasons.
Suites – I love that all the rooms are suites. When I’m on vacation I love the extra room. I feel like I can actually sit in the room and relax as opposed to most hotel rooms which are about half the size. Also, 3 TV’s.
Remember the initial marketing campaign (“The Right Amount of Wrong“) for the Cosmopolitan? It was fortuitous in every way. Cosmopolitan is a really nice hotel with lots of good restaurants and bars. They also have the nightclub that brings in the most money in America with Marquee. Not too many people gamble at Cosmopolitan but that’s OK because the future of the casino business isn’t about gambling. Non-gaming revenue has been more than gaming revenue for over 10 years now.
Even though they have so many good things going on at the hotel they keep losing money. However, they do get the Charlie Hustle award for losing less money than the previous quarter. It’s cool, they don’t mind losing money.
For the quarter, the company reported a net loss of $30 million on net revenue of $141 million for the quarter…
“We are extremely pleased to see our unique approach to the Las Vegas market translate into the strong numbers reflected in our earnings report. Our 2012 financial performance affirms that the Cosmopolitan of Las Vegas brand and guest experience continue to resonate,” she (Amy Rossetti, vice president of public relations) said.
The Charlie Hustle award is named after baseball player Pete Rose who was nicknamed “Charlie Hustle”. He played the game hard and tried harder than just about anyone in baseball. When I played Little League the Charlie Hustle award was given to the kid that tried really hard but wasn’t usually one of the better players on they team. But hey, they tried.
Hey, the Cosmo tried. They deserve an award.
The Cosmo is doing a little better business than last quarter but they’re still losing money. I like the Cosmo a lot and enjoy going there but at some point they have to make money to keep the lights on. Right?
I love the Vegas strip. There’s no place in the world like it. There never has been and there never will be. It’s awesome. That said, the strip has been changing a lot from when I first started visiting Las Vegas for bettor better and worse. Right now the center of the Vegas strip is where you’ll find plenty of construction for The Linq, The Quad and Bill’s but in the next few years the construction will be moving to the north end of the strip with Resorts World and SLS Hotel.
The Vegas strip change isn’t anything new. CityCenter, Cosmopolitan and even Wynn ushered in change over the past decade because their customers are changing. People don’t come to Las Vegas just to gamble like they used to. They come for the night clubs, fine dining and shows. In fact, people have been coming to Las Vegas for those things more often almost every year since 1990 and in 1999 when people began spending more money on things beyond the casino.
Revenue is the total amount of money spent and not profit. This chart only shows gaming and non-gaming revenue so let’s look at an approximation on gross profit. The house edge (ie. gross profit) on some of the worst bets in the casino is only 30% with the lowest house advantages being under 1%. Meanwhile, the markup on a bottle of wine in a 4 star restaurant can be 200% or more. Even a soda at a low end restaurant will be marked up over 1,000%. The markup on a bottle of vodka at a nightclub dwarves all both of those.
In todays, corporate run, Las Vegas every square inch of a casino has to show a profit. This information has to be reported every quarter and in order to show shareholders that the future looks bright they have to always show a profit. Sure the casino may lure you in but the real money is made on those awesome SW steak dinners or at a table in Marquee.
Even if the Cosmo only gets a percentage of the revenue from Marquee there is a nice chunk of money to be made their from small stake plus rent plus overflow spending at restaurants and bars.
Gambling hasn’t left Las Vegas. Far from it. While the chart above shows that 35% of the revenue earned on the Vegas strip is from gaming you’ll find that Downtown Vegas still earns the majority of its revenue from gaming.
Moving forward expect this trend to continue. If you’re a gambler you’ll probably find better gaming options and more people like you downtown. If you don’t mind worse gaming odds and don’t mind being around different people you will still be able to find fun on the Vegas strip.
Personally, I love the both the gaming and non-gaming Las Vegas and look forward to seeing what the future brings.
There are a lot of changes happening on the Las Vegas strip right now. Many people just know the construction as an inconvenience. Most of the major projects happening on the strip right now are Caesars Entertainment casinos, hotels and shopping areas. Here’s the quick breakdown in order of new projects opening.
Out: Imperial Palace (photo flickr/ email@example.com) – Caesars Entertainment does not own the license for the name Imperial Palace and decided not to renew their lease on the name. The property is undergoing a name change to The Quad and being renovated.
In: The Quad – Caesars decided to only renovate the casino and not hotel of The IP/The Q. The good news is you’ll have a new casino. The bad news is you can still get the dirtiest rooms on the strip! Hey, at least they’re cheap. Transformation will be completed by 12/21. Learn more details about The Quad at Vegas Chatter.
Out: O’Shea’s – O’Sheas closed earlier this year and is the biggest closure because of what’s being built in its place, The Linq. I’m happy to see this dump go away, but it was a place for people to go and gamble and drink for cheap. It had a place on the strip.
In: The Linq – The Linq is not a casino. Instead it will be a variety of retail outlets, restaurants and bars with a ferris wheel as the anchor to the area. This will be a huge area of the strip that seems as if it will rival CityCenter in size. The Linq’s tenant’s aren’t very exciting but there’s nothing horribly offensive about any of the bars or restaurants. The Linq is scheduled to open December 2013. Vegas Chatter has a lot more information on this huge space causing traffic on the strip.
Out: Bill’s Gambling Hall & Saloon (photo flickr/ anna_jewels) – Bill’s will close in February 2013 and will be gutted but not imploded. In its place a new “boutique” hotel/casino will open focused on serving people more interested in nightclubs than gambling. I’ve never been inside of Bill’s, but people that like cheap drinking and gambling were their customer. Notice the trend here by Caesars?
In: Drai’s (Actual name TBD) – This casino will be completely different by the time renovations are complete in 2014. From all accounts it seems as if this will be geared towards the same people that go to Cosmopolitan for Marquee nightclub. It will be interesting to see how that segment of Vegas visitors develops over the next two years. No photo here since there’s no renderings.
Maybe more: There was talk of Bally’s Grand Bazaar shops being built on the strip earlier this year but I haven’t heard anything recently and there’s no construction happening right now.
I have no memories tied to any of the places closing on the strip so I’m not sad about any of these changes. I look forward to seeing what the strip looks like in 2014.
Cosmopolitan of Las Vegas will be adding a $25 resort fee per night for hotel reservations beginning 2013. This resort fee is approximately a 10% hike on hotel rooms that cost an average of $257 per night. The hotel runs at about 86% capacity on any given night so, there’s a definitely demand for rooms at the Cosmo.
We know gaming is not the strong point at the Cosmopolitan. In fact, casino revenue fell 5.5% in the last quarter. An increase of room rates is really all that Cosmo management can do to stop the bleeding.
While food and beverage do well, they don’t own 100% of the restaurants or Marquee so they don’t make 100% of the revenue. They may own the bars (I don’t know if they do or don’t), but there’s only so much money they’ll see from 10% drink price increases.
However, they do own 100% the hotel revenue. Travel sites like Expedia take a portion of room fees and NOT resort fees so it makes sense that the Cosmo add a resort fee as opposed to normal rate increase. At these rates the Cosmopolitan stands to make approximately $4.5 million dollars per quarter ($25 x 2,000 rooms x 90 days). For comparison that would cover their $1.3 million loss in casino revenue 3-fold.
Most casino/hotels in Las Vegas that are on the same level of luxury as the Cosmopolitan charge a resort fee. So, if you want to take your vacation elsewhere you’ll still have to pay a resort fee and similar room rates. This just keeps the Cosmo in line with their competition.
Nobody likes price increases but it’s understandable why the Cosmopolitan changed their mind and added a resort fee after looking at these numbers and competitive factors.
I’m not much of a nightclub guy, but I’ve spent a few awesome nights at Rain Nightclub at Palms. It’s lasted a long time, but it closes for major renovations after this weekend. It will re-open as something different in the future, but it won’t be Rain.
The casino and 9Group announced Monday that Rain Nightclub will close early Sunday to make way for a multi-million dollar renovation….Renovations begin next year. The Rain announcement follows the closure in June of the Playboy Club at the Palms — also to allow space for renovations. New tenants haven’t been identified.
Rain opened in 2001, which is shortly before I first started visiting Las Vegas. At that time Rain was the only club to go to. While I’d rather eat, drink and gamble I could always take a short break from the tables to hang out with the good looking and famous people in Vegas.
I’ve written about seeing Britney Spears at Rain before so I won’t go into it again but it’s needless to say I’m listening to Britney while I write this.
There are many places in Las Vegas that are tied to very specific memories that are amazing parts of life. Rain was a part of some of those Vegas memories that I’ll never forget and will always hold a special place in my heart.
Rain will probably reopen as something awesome next year, but it doesn’t matter to me. I still have those awesome memories. I can’t imagine that the new Rain will challenge Marquee and XS for the current title of best clubs in Vegas. We’ll see.
The audio in the video below is not good quality, but that’s about how close I was when Britney first performed at Rain. If you can stomach her audio the fan reaction is awesome.