Las Vegas Sun

March 28, 2024

SLS off to rough start but looking forward to 2015

SLS Las Vegas Opens With Fireworks

Christopher DeVargas

Fireworks are seen above the towers at SLS Las Vegas during the grand-opening celebration Saturday, Aug. 23, 2014, on the Strip.

Scott Kreeger has a long history of working in the resort industry, and to use a reliable gambling metaphor, he knows how to play the cards. He is sitting on something less than a full house at SLS Las Vegas, but give him time to build that hand, he says. The game has just begun.

A 20-year veteran of MGM Resorts and Station Casinos, Kreeger arrived in Las Vegas in September just after Revel in Atlantic City closed. Right as Kreeger took over, SLS trimmed its staff by 2 percent, cut hours at the Griddle restaurant, and soon after, closed its buffet. The Foxtail nightclub is open only Mondays. Life, the hotel’s 20,000-square-foot nightclub, has tried to spark business by hiring star DJs R3hab and Steve Angello.

Kreeger talked about his plans for the hotel:

Johnny Kats: Since SLS opened, we’ve seen a number of disconcerting events unfold, especially in nightlife and food and beverage. Independently, these types of events might be explained, but collectively it seems alarming.

S.K.: First of all, every new property on the Strip, when it opens, has its unique challenges. I think, overall, we have some challenges, but we have received a very positive response. At the same time, we recognize there are areas that need to improve.

You mentioned nightlife, and we need to talk about that. Certainly, there are two factors here. Seasonally, nightlife slows down this time of year, and although Sam (Nazarian) and the team are very, very well known and actually leaders in the nightlife world in L.A., we opened the property and the nightlife program heading into a slow season. What we’re trying to do is take this time to refocus, build a program for the remainder of the year and come into 2015 with some really strong offerings. We’ve signed a deal with Steve Angello for a residence on property, and that’s just the beginning.

J.K.: How do you get people who live near a locals casinos to come to the north end of the Strip?

S.K.: We’re offering an experience that is much more wholesome than just slot machines and table games. It’s nightlife, hospitality, spa, salon, entertainment and phenomenal food. Gaming is not the cornerstone of our financial model. And, there are quite a few households around the SLS property. I expect to start to work on programs that make SLS relevant to locals. We’re going to springboard off our early successes with food and offer a product that is appealing to local Las Vegas customers. The buffet is one of those things.

J.K.: Then why close the buffet?

S.K.: While the buffet did well, one of the reasons we’re closing it right now is seasonality. Another thing I want to take a look at is the programming of the buffet and making sure it is in alignment with Las Vegas customers’ preferences. We think the buffet closure is going to be a temporary thing.

J.K.: Are more layoffs coming?

S.K.: It’s very difficult to nail what your staffing levels are going to be exactly and just what your volumes are going to be. Every casino I’ve opened up, or heard of opening, has some adjustments for staffing. Will there be other reductions in staff? If there are, they will be a function of just fine-tuning hours of operations or business volumes in certain outlets. I can’t say that, on its surface, there will never be another reduction in force. But we don’t anticipate it. It’s not our focus. It’s not our business model.

J.K.: The MGM Resorts Festival Grounds is under development across the Strip, and there are plans for two resort projects on the north end. How important it is for SLS to be on solid footing when these projects break ground?

S.K.: Visitor volume along the Strip is growing, and we’re very happy about our location. The ease of arrival is phenomenal. We’re happy where we are, and we think the surrounding area is going to grow and prosper in the coming years. We have to be ready to be part of that story.

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