Sam Nazarian & sbe Sell Their 10% Of SLS Las Vegas

Buffet Monkey At SLS Las Vegas
First Buffet Monkey, Now Sam Nazarian Out at SLS Las Vegas

It shouldn’t come as a surprise that Sam Nazarian (sbe) decided to sell their 10% Of SLS Las Vegas. SLS Las Vegas has gotten off to such a bad start since opening in 2014 that they’ve made drastic changes like closing the nightclub, removing brand names from stores and restaurants, refreshing their players club to a more locals friendly model and more.

SLS Las Vegas isn’t the cool, hip casino originally planned and this basically seals the nail in that coffin.

Stockbridge Capital will operate the casino-hotel for the time being. Earlier this year I speculated that SLS Las Vegas was on the road to becoming Cosmopolitan Jr. but I don’t think that will be the case moving forward. The executive staff at SLS Las Vegas is doing everything they can to change the image of the property. By the time Stockbridge sells SLS there won’t be any cross marketing opportunities for Cosmo and SLS to make any sense.

I really like the hotel rooms at SLS Las Vegas and the Umami Burger/William Hill sports book but I’m not sure there’s a compelling reason to visit more often. I’d like to see the property do better but I think that will take new ownership. We’ll see.

Read more about “Nazarian to Sell Stake in SLS Las Vegas Hotel” at the Wall Street Journal

Jay-Z, Magic Johnson And Now Sam Nazarian

Sam Nazarian SLS Las Vegas Sahara Photo
Sam Nazarian

At a licensing hearing for SLS Las Vegas a couple of weeks ago it was noted that Sam Nazarian’s  SBE only owns 10% of the hotel opening this week.

Stockbridge owns 90 percent of the SLS Las Vegas while SBE Entertainment owns the remaining 10 percent but does not have any voting rights.

This surprised and confused many people as Sam Nazarian has been touted for “Shaking Up Las Vegas” since SLS Las Vegas was announced.

In just three months, on August 23, Life will open as the centerpiece of Nazarian’s new SLS Hotel and Casino. It’s where rowdy bachelorettes and drunk conventioneers will buy $1,000 bottles of champagne while aerialists perform overhead. 

Yes, SLS Las Vegas is being touted as Sam Nazarian’s hotel despite his company’s small ownership stake. As I’m writing this there’s a hearing for SLS Las Vegas’ gaming license where it was clarified that SBE/Nazarian “work for Stockbridge” and that technically Rob Oseland will really be running the ship day to day at SLS Las Vegas..

Sam Nazarian is a figurehead and spokesperson. He’s the famous name that SLS Las Vegas can use to market itself. In today’s media landscape this small ownership stake by a spokesperson should come as no surprise to anyone.

Jay-Z owned less than 1% of the Brooklyn Nets when he was called an owner. Magic Johnson owns the Los Angeles Dodgers but owns less than 3% of the team.

Even though calling these people “owners” seems like false representation it isn’t. They are “owners” hired as spokespeople. Jay-Z (especially) and Magic Johnson bring a cool factor and little more to their businesses interests. This arrangement benefits both parties as it offers something neither would have without each other.

Nazarian and SBE offer almost the same thing to SLS Las Vegas but they actually bring some kind of business portfolio to SLS Las Vegas. That’s probably why they own 10% and not less than 3% of the business.

Photo: Review Journal

Sam Nazarian SLS Las Vegas Sahara Photo
Sam Nazarian

 

SLS Las Vegas On CBS This Morning

SLS Las Vegas Rendering
SLS Las Vegas Rendering

SLS Las Vegas was featured on a segment about owner Sam Nazarian on yesterday’s CBS This Morning. There isn’t much new information here besides the fact that SLS will own all retail outlets on the property. I’m not sure that’s really new but it hasn’t been talked about much.

SLS Las Vegas isn’t being built for the gambler. As I wrote on Vegas Chatter earlier this year there won’t be a poker room or a traditional sit down sportsbook (the sportsbook will be more of a sports bar where you can bet on games). SLS Las Vegas is looking at gaming to be less than 1/3 of their revenue so we can expect poor gaming odds and payouts.

It’s nice to see progress for this hotel which will sit where Sahara once did. By the time I happened upon Sahara it was a sad dilapidated hotel ready to die. It didn’t encourage me to learn about its history. That’s slowly changing to the point of where I can appreciate it a little more.

I hope SLS Las Vegas keeps some of that history alive when the hotel is done. I was skeptical that this would ever open but SLS Las Vegas may be the beginning of a resurgence on the north end of the Vegas Strip.

 

Sam Nazarian Says SLS Hotel Opening 2014 In Vegas

Vegas Tripping’s good friendSam Nazarian, continues his push to get out of the reality TV ghetto and into the real estate mogul world with another interview. This time he says that the SLS Hotel in Las Vegas will be opening in 2014. Of course, they’ve yet to break ground so there’s almost no way this is likely to happen.

In March 2012, Nazarian plans to open a luxury hotel in Miami, the SLS South Beach. Various other SBE-owned businesses, including Katsuya Restaurant, Umami Burger, and Hyde Lounge, will also inaugurate franchises across the U.S., leading up to the planned opening of SLS Las Vegas and SLS New York in 2014. (He won’t say where in New York he plans to open but has signed a letter of intent on a Midtown property.)

It looks as if he’s telling the same BS stories to investors about potential for a New York City property that he is about a potential Las Vegas property.  Call me crazy, but it will be more difficult to build (in NYC) since he doesn’t even have land yet.

All in all this article in (note: photo above from) Business Week is a quick read and it should be since it’s chock full of nothing.

For you Sahara enthusiasts, keep the dream alive!

Love,

Mayor Sahara