Zona de Azar USA – Fontainebleau Las Vegas: A $3.7 Billion Luxury Resort Emerges
USA.- December 18th 2023 www.zonadeazar.com In a grand celebration featuring Justin Timberlake, Las Vegas witnessed the unveiling of Fontainebleau, its newest $3.7 billion luxury brand on Wednesday. The 67-story resort, once stalled by the Great Recession and bankruptcy in 2009, has come full circle to its original owners, Fontainebleau Development, renowned for the historic Fontainebleau Miami Beach. The morning ceremony paved the way for a midnight public opening on Wednesday.
This momentous event for Fontainebleau coincides with a more favorable time compared to the last resort opening on the Strip. As Resorts World Las Vegas debuted in June 2021 amidst the pandemic recovery, Las Vegas is now progressing toward a full pre-COVID visitor count, expected to be achieved by 2024. Remarkably, the city continues to set gaming revenue records in 2023, building on the success of a historic 2022.
The driving force behind these record revenues is the willingness of visitors to spend more in Las Vegas, despite visitation numbers yet to fully return to 2019 levels. The average budget for visitors engaging in gambling activities reached $824 in 2023, a substantial increase from $591 in 2019, reflecting a nearly 40% surge.
Contributing to this success are affluent visitors targeted by prominent establishments such as Wynn, Encore, Bellagio, Aria, Venetian, Palazzo, Cosmopolitan, and Resorts World. The recent hosting of a Formula One race in November further marketed the Strip to high-end visitors, especially those from abroad.
The Las Vegas Convention and Visitors Authority’s survey highlighted that 44% of third-quarter visitors in 2023 had household incomes exceeding $100,000, a notable increase from 33% a year ago and 29% in 2019.
Luxury resorts, offering fine dining, entertainment, and high-end retail, have experienced significant spikes in spending since 2019. Fontainebleau Las Vegas President Mark Tricano emphasized the brand’s appeal to ‘assured tastemakers,’ catering to sophisticated travelers seeking unique experiences.
While the opening of Fontainebleau is deemed positive for the north end of the Strip, following boosts from Resorts World and the new West Hall of the Las Vegas Convention Center, its success is yet to be fully assessed. Fontainebleau, with 3,644 hotel rooms and suites, a 150,000-square-foot casino, and various amenities, faces competition in the upper-tier market.
The strategic location of Fontainebleau, closer to the Convention Center than Resorts World, is anticipated to drive room bookings, particularly for business travelers attending conventions. Tricano emphasized the accommodation of ‘bleisure’ travelers, combining business and leisure experiences.
Fontainebleau has seen an enthusiastic response to reservations, indicating potential success in attracting both transient and group bookings. The Fontainebleau Las Vegas joint venture between Fontainebleau Development and Koch Real Estate Investments marks a significant chapter in the city’s history, representing resilience, passion, and an unexpected comeback.
As the iconic structure on the north end of the Strip comes to life, it symbolizes the end of an era and contributes to the ongoing growth and development of the Las Vegas Strip. LVCVA CEO and President Steve Hill emphasized the significance of Fontainebleau, stating, ‘This attraction is going to help the entire city. What lifts one boat lifts them all, and Fontainebleau will play a role in the next generation of Las Vegas.’
Edited by: @MaiaDigital www.zonadeazar.com
