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Treasure Island owner Phil Ruffin walks outside during a tour of the property Wednesday. Ruffin has invested $15 million in making the hotel appeal to a blue-collar audience, including adding a Gilley’s saloon and a pizza joint across from the Mystere Theatre.
Saturday, April 3, 2010 | 2:01 a.m.
Ruffin's T.I.: One Year Later (4-1-2010)
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Almost exactly one year after Kansas billionaire Phil Ruffin bought Treasure Island, he takes us on a tour of the changes he's made to the property, including new restaurants and a new spa. Ruffin says business is slower than he had hoped, but that T.I. "will survive" because of a lack of debt and the $92-million room remodeling that MGM undertook before he bought the property.
Sun Archives
- A month after T.I. buy, Ruffin discusses downturn (4-16-2009)
- From MGM to Ruffin: Treasure Island changes hands (3-19-2009)
- Board recommends approval of Treasure Island sale (3-4-2009)
- Treasure Island’s buyer talks about the art of the deal (12-28-2008)
- Treasure Island likely a domino standing alone (12-22-2008)
- For strapped casino giant, sale provides sure cash (12-16-2008)
- MGM Mirage to sell Treasure Island (12-15-2008)
Treasure Island
Just steps away from the pirate ship where sexy sirens make a splash nightly, Phil Ruffin is harboring a country-western haven.
Gilley’s saloon, a brand popularized in the 1980 movie “Urban Cowboy,” was the featured attraction at Ruffin’s previous resort, the New Frontier, until that building was imploded in November 2007. But as owner of Treasure Island, Ruffin is spending about $10 million to return Gilley’s to the Strip — mechanical bull and all.
Ruffin doesn’t look his 75 years as he weaves briskly between construction workers to point out favorite details of the restaurant and bar — bar stools made of saddles, the street-level seating and the dance floor — although he wishes that could have been larger.
Ruffin points to an unlit neon sign on a wood-paneled wall and chuckles. “ ‘World Famous Bikini Bull Riding.’ Yeah, we’re going to have that, too.”
Bikinis might fit with Treasure Island’s high seas theme. Country-western doesn’t — but “it doesn’t have to,” Ruffin says bluntly.
What it does have to do is comply with the billionaire’s plan to turn his resort into an everyman hotel. The barbecue and beer joint replaced the pricey Francesco’s Italian restaurant and posh Mist nightclub.
Ruffin marketed his first Strip casino, the New Frontier, as everyman’s for nine years before selling it to Manhattan’s Plaza Hotel owner, the Elad Group, for a record $1.24 billion in May 2007. Elad closed the New Frontier two months later and imploded the building in November 2007 but has yet to do anything with the land.
In March 2009, Ruffin returned to the Strip by purchasing Treasure Island from cash-strapped MGM Mirage for $775 million. The Kansas entrepreneur paid $750 million in cash upfront and only has what he called a “small loan” left on the property. Most of his Strip competitors are debt-ridden and struggling to survive the recession.
The Las Vegas landscape has continued to change over the past 12 months since Ruffin bought Treasure Island. The Las Vegas Valley has added more than 8,000 hotel rooms, and Ruffin says the additional rooms have been tougher on business than he expected. The average room rate at Treasure Island is down about $20 from last year, he says.
“Steve (Wynn) built Encore and CityCenter came on board. I assume Cosmopolitan will soon come on stream and the blue monster over here — Fontainebleau — will soon come on stream,” Ruffin said. “We don’t need more rooms right now because we’re already having a problem with room rates. But we’ll survive because we don’t have much debt.”
Like other casino operators, Ruffin says that although there are still plenty of people walking the Strip, they just aren’t spending as much as they used to.
His answer has been to bring in amenities that mirror current visitor spending habits, and he has spent about $15 million toward that change.
Just off the casino floor, Ruffin replaced the store that sold Rolexes with a jewelry shop selling cubic zirconia baubles. In the gift shop next door that sells magazines and small bottles of shampoo, signs offer “all diamond jewelry 50 percent off.”
“We’re trying to get rid of all the leftovers,” Ruffin explains.
Across from Mystere Theatre, Ruffin replaced another of Treasure Island’s jewelry stores with a by-the-slice pizza restaurant called Francesco’s. The restaurant doesn’t have any tables or booths, just bar stools and counters.
“It’s quick and it’s cheap and that’s what people are looking for these days,” Ruffin says. “You should see this place after ‘Mystere’ gets out. You can’t even get near it.”
He axed the popular Social House restaurant, which he said wasn’t performing up to his standards, and brought in his own Asian-fusion concept, Khotan. Guarded behind glass cases, pieces of Ruffin’s extensive collection of intricately carved jade and ivory antiquities are displayed throughout the restaurant. Among the ancient art is a Chinese carved mammoth tusk; similar carvings currently go for more than $100,000 apiece online. Ruffin has five.
As for Treasure Island’s spa, Ruffin left that to his 28-year-old wife who was Miss Ukraine 2001, Oleksandra Nikolayenko-Ruffin. She had the bright blue walls and carpets torn out and replaced with beige marble to rival some of the high-end spas in town. She brought in her own line of beauty products and Eastern European treatments, such as a Russian banya, a sauna where attendants gently beat the sweat off clients with branches of oak leaves.
In total, Ruffin spent about $3 million to give his wife the spa of her dreams.
“It was her vision,” Ruffin says. “We spent way too much money on it, but it’s very pretty.”
The New Frontier opened on Oct. 30, 1942, and continuously operated until it closed its doors on July 16, 2007, at 12 a.m. This photo was taken in the last few hours the hotel and casino were open.
One part of the property Ruffin hasn’t touched is Treasure Island’s hotel rooms, and he isn’t planning on spending much money on them anytime soon. He says he doesn’t need to because MGM Mirage finished a $92 million room renovation six months before selling the resort. Ruffin said the new rooms put Treasure Island in a better position than some of its Strip neighbors that can’t afford to update their rooms.
The rooms aren’t the only part of Treasure Island staying the same. Ruffin re-signed Cirque du Soleil’s “Mystere” for five years because “you cannot have a Las Vegas-style casino without a really good show.” But he has found other ways to stretch his buck when it came to the theater. On nights when “Mystere” is off, Ruffin has other performers there — LeAnn Rimes, Sinbad and Bill Cosby, for example.
He said there’s been no major staff cuts since he took over last year, although he capped vacation days and eliminated 401(k) contributions to control labor costs. Other owners on the Strip did the same.
It seems unlikely that any of them can name as many of their rank-and-file employees as Ruffin can, though. He’s a full-time Las Vegan and much of his office is based on the first floor of Treasure Island, so he interacts with his employees more than the typical Strip resort owner.
Sprawled across a table in his office are Chinese newspapers to keep up with what his competitors are doing in what has become the gambling industry’s biggest market, Asia.
But at Treasure Island, Ruffin is more interested in getting people from middle America to spend more money at his resort.
If Ruffin is truly interested in getting people from middle America to spend more money at his resort, then he should bring back the Pirate Battle show out front, loosen his slots, cheapen the room rent and food, free drinks, generous comps, and bring back good BJ odds. Then he might pull it off
Oh yeah, and destroy that ugly TI sign and put the skull and bones one back up! I couldn't believe it when MGM tore that down!!
The key is having little or no debt. Because he is in that situation, Mr. Ruffin can tinker with the different aspects of his casino/hotel and make a modest profit while he waits for the recovery. If the other hotel owners had taken that conservative approach instead of empire building, Las Vegas would be sailing past this recession.
Help me out here. I thought Ruffin was quoted in the LV Sun on May 11, 2009 as saying, "I don't want the $50 customer." Because of that, I stayed away. Now is he saying he would like the value guests back?
Sounds like Mr. Ruffin is going after the market that has been staying at the Sahara, the Riviera, and Terrible Herbst's Casino...maybe he should also install a Dollar Store and an Olive Garden, and other great culinary adventures such as Blueberry Hill, Denny's, and Nathan's Famous...of course Pizza by the slice will do well as hundreds are just exiting a 90 minute show and see this as an alternative to an expensive dinner. Let me put a lemonade stand in front of your Pirate Show on the sidewalk and I will show you success, and gladly give you 70% of the gross revenue. Bull Riding??? The Frontier was a toilet that let cowboys ride bulls, and spit chewing tobacco juice on the thread bare carpets. But Mr. Ruffin...isn't a world class Spa a dichotomy in the 'everyman' market? Maybe your wife of some fifty years younger than you is wearing the pants...watch out, and make sure she doesn't have her own corporations separate and distinct from yours...remember Pia Zadora at the Riv...
TI is in a MUCH better location than Wynn who I also noticed has started selling pizza by the slice! LOL
It is a step in the right direction. But as enviroprotector points out, these casino execs i hope realize that nothing will increase casino revenue like free drinks, cheaper food, and much cheaper rooms. To this end, there is a long way to go before we return to the Vegas of yester-year where you actually got value for your money. I just completed my most recent trip to Vegas last week. And how things have changed in just a few years. There are noticably less cocktail servers on the casino floors. Prices from everything down to ATM machines have skyrocketed. And don't even get me started on the BJ odds/payouts.
I signed up for an MGM players card and got a coupon for a free drink at any MGM property...When I redeemed it later that day I handed it to the bartender and received one of the rudest looks I've ever received.
I hope Vegas doesn't forget what made it great - Good customer service & good value.
As said it sounds like he's on the right track.
The only thing I wish is they had a wider sidewalk or a detour path around the Sirens. I try to avoid walking on that side of the street at night. Because of the show and how narrow the path is, it's almost imposable to walk past at time. But if your in a wheel chair forget it.
No answer to the most important question.
Is he bringing the old mechanical horse racing game that sat outside the sportsbook at the Frontier?
Bring back the pirate ship battle
Ol' Phil may be trying to be a good ol' boy, but the The Ukrain Darling is dictator as cruel as Stalin ever thought of being. Just ask the countless people she has fired for just looking at her or other women she thought daddy war bucks Phil may be a courtin' someday. No thanks Phil I don't buy your program. You got lucky with your timing of selling the Frontier and buying Treasure Island but your position is well stated on regular people who you now want to court as customers. You can't sell that program to anyone who knows you.
I think TI is one of the nicer, affordable properties. The rooms and interior are much nicer than the Harrah's, Flamingo, Ballys-type properties. I like the Isla Mexican restaurant and the location is great. I don't know the man so I wouldn't make a bunch of personal comments about him but I wish him well. If it's good for TI it's probably good for the town. And I love that he's not part of one of the two duopolies.
They need some help with the blackjack if they really want to stand out and take on the big boys around them. The 6/5 ploppy games need to go. The continous shufflers need to be thrown out. Lower the limits on the double deck and have more tables available for the $10-$25 player.
Also, the pit bosses in the BJ pit near the high limit room need to seriously lighten up and not be stressed out when someone starts winning at blackjack. There's one PB who looks like Tony Soprano and has a really bad attitude. People sometimes win at blackjack, deal with it.
Mr. Ruffin has an opportunity to set himself apart from current nonsense taking place at MGM and Harrah's. He does not have to worry about LV Sands or Wynn. He is in the perfect position to undercut his competition with better service and better games. The TI could easily be like the old Binion's Horseshoe, minus the toxic cigarette smoke.
The TI might have the best access to the strip for locals. 15 north or south, exit Spring Mountain. Drive a 1/4 mile and you are right in the garage. Easy access to parking and a quick walk into the casino. The TI could easily have lots of local business with tourists mixed in. The potential is there for this casino to stand out from the rest and make tons of money.
The question is whether Mr. Ruffin will figure this all out? Or will he just be another casino like Harrah's or MGM that screws over their patrons? Time will only tell...
Now if he can bring back a few more reminders of the Frontier, maybe even the mailing list from there he just may be able to lure some of us "quarter" players over there.
Almost forgot how about "Margaritas", it, in my opinion was one of the best Mexican restuarants in Las Vegas
To jimmyhoofa.... Ruffin has figured it out. His Casino is going to be just like Harrah's and MGM. If he wanted to accommodate the locals he would have had looser slots and go back to the days of paying 2-1 on blackjack! The leverage we have is don't patronize them!! If you must stay on the strip get a deal at the better Casinos (Bellagio , Venetion , or Wynn) They All give deals now with the economy bad.I was offered 2 days Comp at Bellagio and I don't even go there!! Good luck.
"She (his wife - Miss Ukraine) brought in her own line of beauty products and Eastern European treatments, such as a Russian banya.."
Junkets for the Russian mafiya...
I mean they've swindled enuff from the old country that I'm sure that can splurge a bit and help our ekonomiya...
Bwahahahaha
Looks like sin city has morphed from Sinatra, showgirls and sammy davis to matinees and pizza by the slice
This is like the joke about the great career actor who is about to get a lifetime achievement award at the Oscars.
He gets a heart attack and dies on his way to the stage. He complains to St. Peter. St. Peter says God is making a movie. Michael Angelo is the Art Director - Mozart is doing the soundtrack - Shakespeare did the script and DaVinci is directing. He tells the actor that God wants this guy to star. The actor is humbled and asks, "But why does God want to make a movie?" St. Peter answers, "Well, he's got this girlfriend..."
Damn. The guy bought a casino for his girlfriend. Damn.
Ahem, anyway, asides from that - sounds like a taste of Circus Circus and Stratosphere class has made their way to mid-strip.
I'll gladly be a $50 room customer at TI.
Now, if they will realize that us regular folks might play more blackjack if there's a $5 table.
I just played at a $2 table at an Indian casino in Oklahoma. Plenty of players, all having a good time and not the stress of losing $50 on 3 bad hands in a row.
Best to you Mr. Ruffin.
Hey Markoff--- If he does bring back that stupid machine,, you can tell everyone you heard it here first,, that I will beat that stupid machine into splinters if I see it... Stupid people play that stupid machine for a quarter,, yelling and screaming for their horse to come in,, while money is played on the real ponies and then having to hear that BS is not right...Dam fools...
C'mon! Pics of Oleksandra pleez!
If you analyze Ruffin's position within the current economic situation in Vegas and then include his past historical penchant for wise business moves, you have to consider that this guy knows what he's cookin. How many other Vegas casino owners have managed to continue operations under such a light debt load ? You can state that he came in at a good time with the TI acquisition because of MGM's need for cash, but he got it done. He generated a ton of profit from the New Frontier deal and now he's responding to reduced Vegas visitation and spending by attempting to cater to the common man. This is just one of those guys who seems to be able to always be in an enviable, right place at the right time position. He has a great eye, obviously.
Cheers...
Well, if they want to appeal to Everyman, they might stop tricking the average guy by adding the resort fee small print to every hotel booking. The average guy does not like to have to bring a lawyer to book a room. Charge just once for the room, upfront and honest.
We had more luck at TI when MGM owned it so maybe they should loosen up the slots. The men in suits do appear intimidating even when you are just playing slots.
It appears many of the hotels are adding the resort fees, much like airlines adding baggage and seat fees after the initial flight fee. I agree, be fair about it up front. That will help them appeal to the middle class.
I've been in this hotel twice, for business meetings and I was somewhat disappointed. The casino area just looks trashy and run down and the meeting rooms leave a lot to be desired. If he wants to increase business he has to pay attention to detail,and for gods sake clean up the place.
Since my last comment got removed, I will try this again:
Multiple Choice Question:
Oleksandra Nikolayenko-Ruffin (28 years old, former Miss Ukraine) is married to Mr. Ruffin
(75 years old) because of the follwing:
A. He is witty and an interesting conversationalist.
B. He has a great sense of humor.
C. She would like to learn more about the hotel and casino business.
D. He is worth over a billion dollars.
E. All of the above.
Answer:
E -- all of the above.
Old Guys Rule, especially rich old guys!
lets see,he capped vacations and scuttled 401k contributions to save costs,but then all of the operators are doing it and still making money off of the hard-working employees backs,but hey,we still have our jobs and insurance,presuming your full-time
Hey by dodgerchuck, I know several gaming companies that have cutback on the 401K contributions, but I don't know of any other gaming company that has capped vacation time. Once again, the rich man is getting his reward by screwing the employees.
I stayed there last summer on MGM prices right after he took over. I have gotten no offers, while other places I played a fraction of the time at send me free nights, more than I can use.
Ruffin's resort fees, decimated paytables and ridiculous slot club means I have no desire to return.
I went there to play blackjack about a month ago on a Tuesday night. Not one table open in the DD pit. Only had 6 deck or that stupid 6/5 game.
Come on now. That's not how you bring in business.
I won a grand on a dollar slot at Treasure Island in 2001, signed up for the players club card after receiving my hand pay and never heard another word from them until 2009 after the sale. Now each quarter since the sale I've received 2 night comp offers with $200 free play and $50 food credit, which I've been using. The remodeled rooms are very nice and the South strip view from the West Tower rooms cannot be beat. You can see all the way past Mandalay Bay since they built TI where the strip curves. I'm not sure of the point of my post. I guess I'm giving the place props for treating me well as a low roller.
I can't see this being an everyman's hotel til they ditch the resort fees. He is smart to bring his property in line with what tourists want but this fee thing is going to start biting hotel operators in the rear soon.
Ruffin made a real estate deal. True, he is a poor operator who will grind the place down and keep capital improvements to an absolute minimum, but at the end of the day he will likely weather the storm to sell the property years down the road. His location is exceptional and he will leverage it to the hilt of his conflicted pirate brand sword.