Gaming Destinations Place Their Bets on Meetigns
New Developments at Gaming Destinations are Designed with Group Business in Mind
The major gaming destinations of Las Vegas, Atlantic City, Reno-Tahoe, and the Mississippi Gulf Coast are banking on increased meeting business going forward, spurred by a number of factors.
Ranking at the top of the list is the ever-increasing acceptability of convening in a gaming venue. "Just as we are seeing more interest in Atlantic City from corporate sectors that in the past would not have considered a gaming destination - pharmaceuticals and insurance, for instance - we've had more inquiries from associations" with a similar change in viewpoint, said Gary Musich, vice president, convention development, Atlantic City Convention & Visitors Authority (ACCVA). Citing medical associations as an example of the latter, Musich noted that Atlantic City booked 70 percent more future meetings in January 2006 than it did in January 2005.
Rossi Ralenkotter, president and CEO of the Las Vegas Convention and Visitors Authority (LVCVA), corroborated Musich's comments. Ralenkotter said earlier this year that meeting and convention attendees make up approximately 15 percent of visitors to Las Vegas, but the LVCVA is on its way to achieving its goal of boosting that figure to 20 percent by 2009. This year will mark the launch of a new branding campaign targeted specifically to the meetings and conventions market, Ralenkotter noted.
CVBs and hospitality suppliers are changing tactics in marketing gaming destinations, pointed out Stephen Richer, executive director, Mississippi Gulf Coast Convention & Visitors Bureau. "It used to be that there would be this huge emphasis placed on slots, and that was that," Richer said. "Over the past few years, the entire industry has gotten away from that and is presenting a more complete picture of what's available in gaming destinations - from fine dining to retail to spas."
Chuck Bowling, executive vice president, sales and marketing for MGM Mirage in Las Vegas, expressed a similar sentiment during an address to attendees of the Trade Summit for Meeting Professionals, held at Mohegan Sun in Uncasville, Conn., last August. When asked whether Las Vegas is a "gaming destination," Bowling said instead that "gaming is an amenity. Las Vegas is a destination resort."
Added to this is the emerging trend of building hotel convention facilities as far away as possible from the casinos to discourage attendees from skipping meetings in favor of trying their luck at slot machines and games. In Atlantic City, Bally's and Caesars have dedicated meeting space that is not situated in close proximity of the casinos, Musich stated. At Beau Rivage on the Mississippi Gulf Coast, meeting rooms are on one floor and the casino is situated on a separate level. Non-casino hotels are popping up in Las Vegas; the 548-room Las Vegas Renaissance Hotel, the largest non-gaming property in Nevada, opened earlier this year next to the Las Vegas Convention Center. The hotel has 19,600 square feet of space in 14 rooms, including a 9,850-square-foot grand ballroom and 10,000 square feet of prefunction space.
Highlights of the latest gaming destination developments follow:
LAS VEGAS
Development in Las Vegas continues, on the meeting facilities, infrastructure, and hotel fronts alike.
On Feb. 14, the LVCVA Board of Directors approved a $737 million master enhancement plan for the Las Vegas Convention Center (LVCC). Construction is slated to begin later this year and to be completed by 2010.
The enhancement project, which represents LVCVA's single largest investment in the facility in its 47-year history, is expected to generate billions of dollars in economic activity for the local community. Last year, more than $7.5 billion was infused into the local economy by the trade-show sector alone. Las Vegas has been the site of more than three-dozen Tradeshow Week 200 shows, the most of any destination, for 11 consecutive years. The enhancement initiative is intended to ensure that Las Vegas remains the top trade-show destination in an increasingly competitive environment, according to Ralenkotter. LVCVA joins the ranks of many convention centers across the United States currently undergoing or planning significant upgrades to their facilities; 59 of the nation's 67 largest convention centers fall into this category. To determine the components of the project, Ralenkotter said, LVCVA conducted extensive interviews and focus groups with the facility's existing customers, as well as with other stakeholders. Improvements will include adding meeting rooms to support the center's South Hall exhibition space; building a new front lobby that will connect the North, Central, and South exhibit halls; renovating and upgrading the existing facility; and constructing a 100,000-square-foot general session space. Access to the center will be improved by straightening a street that runs behind it, and erecting an enclosed connector between the facility and the Las Vegas Monorail station.
"Las Vegas is continually reinventing itself as a destination, and this is an opportunity for the convention center to reinvent itself and remain atop the industry," Ralenkotter said.
Meanwhile, Las Vegas-McCarran International Airport has completed one of the first elements of a $146 billion renovation/expansion undertaking - a northeast wing containing 10 gates with a letter "D" designation. Additionally, December 2005 marked the reopening of the $650 million Las Vegas Monorail, which had temporarily ceased operation in early September after experiencing technical difficulties. The monorail follows a four-mile route and stops at seven stations: the LVCC, Las Vegas Hilton, the MGM Grand, Bally's/Paris, the Flamingo/Caesars Palace, Harrah's/Imperial Palace, and The Sahara.
As for hotel developments, the $2.7 billion Wynn Las Vegas, the first mega-resort to open on the Las Vegas Strip since 2000, has opened with 2,716 suites, 200,000 square feet of function space, 18 restaurants, a 100,000-square-foot casino, an 18-hole golf course, an art museum, and about 30 boutiques. Developer Steve Wynn has now set his sights on his next project, the $1.4 billion Encore Hotel & Casino. The property will have about 2,000 guest rooms; a groundbreaking has been slated for 2007.
Meanwhile Donald Trump is anticipating the opening of the 1,282-unit Trump International Hotel & Tower - his first project in the city - in mid-2007. Sheldon G. Adelson's $1.8 billion Palazzo hotel is under construction next door to The Venetian, its sister hotel. Opening next year, the property will offer more than 3,000 suites, 400,000 square feet of meeting space, a 100,000-square-foot casino, about 12 premium restaurants, a theater, and a spa.
On a slightly larger scale, an area known as the Harmon Strip is rising around the Hard Rock Hotel, which has invested $1 billion in The Flats, a condominium-hotel development that will open next year with 738 condominium units, several restaurants, and meeting space. Situated in Harmon Strip will be Las Ramblas, a $3 billion, 25-acre project comprised of 4,400 hotel/condominium units in 11 high-rise towers, a 48,000-square-foot casino, an open-air pedestrian promenade, and a movie theater. Flanking Las Ramblas will be the Las Vegas Hotel, Casino & Residences - W Hotels' first property in the city. Scheduled to open in 2008, the $1.7 billion property will offer a mix of 3,000 hotel and residential units, plus 300,000 square feet of meeting space, 10 dining/nightlife outlets, a 75,000-square-foot casino, and the Bliss Spa & Gym.
Elsewhere in Las Vegas, MGM Mirage Entertainment recently announced plans for a $4.3 billion urban development on 66 acres of land between the Monte Carlo and the Bellagio. Expected to be unveiled in 2009, it will feature a 4,000-room resort hotel, three 400-room boutique hotels, restaurants, retail space, and 1,650 residential units. In addition, the Mirage hotel is in the midst of an enhancement program that began last year and will wrap up in early 2007. The AAA Four-Diamond property is adding new restaurants, a nightclub, a modern gaming area, and a Cirque du Soleil production. New at the MGM Grand is The SkyLofts, a "hotel-within-a-hotel" that occupies the top two floors of the property, featuring 51 lofts.
Additionally, Caesars Palace has wrapped up a $76 million expansion that involved the construction of another 86,000 square feet of meeting space, as well as put the finishing touches on the $289 million Augustus Tower. A 26-story, all-suite "hotel within-a-hotel," the Augustus Tower offers 949 guest rooms, bringing the property's total guest room count to 3,340. The 2,563-unit Rio All-Suites Hotel & Casino expanded its function space, from 100,000 square feet to 160,000 square feet. Both Caesars Palace and the Rio are owned by Harrah's Entertainment, whose other Las Vegas holdings include Bally's Las Vegas, Paris Las Vegas, the Flamingo Las Vegas, and Harrah's Las Vegas.
Bellagio has unveiled a $375 million spa tower with 928 guest rooms, an expanded spa and salon, 60,000 square feet of meeting space, 5,000 square feet of new shops, and a restaurant. The $800 million South Coast Hotel & Casino, which features an 80,000-square-foot exhibit hall and a conference center with 75,000 square feet of meeting space, recently made its debut, as did The Westin Casuarina Las Vegas. A $75 million transformation of an existing property, the Westin Casuarina Las Vegas features 825 guest rooms, 12,000 square feet of meeting space, and a 200-seat showroom. Planet Hollywood and Starwood Hotels & Resorts have teamed up to purchase the 2,000-room Aladdin Resort & Casino and transform it into the Planet Hollywood Resort & Casino, a Sheraton Hotel. By the end of next year, the revamped property will boast a new façade, a new 1,500-seat showroom, and an updated dining and entertainment concept.
The Tropicana is open for business as usual and accepting reservations for the foreseeable future. A decision on closing the Tropicana and redeveloping the site has been placed on hold indefinitely pending the closing of the sale of Aztar, the Tropicana's parent company, which is expected to occur late this year. The company that is buying Aztar has indicated it expects to take at least two years to decide what course of action it will take with the property in the future. The Tropicana Convention Facility offers 50,000 square feet of flexible meeting and banquet space to accommodate the most intimate gathering or the most grand gala. Breakout rooms can be arranged for theater, classroom, or banquet seating for up to 2,300 guests. A full range of audiovisual equipment and production services, communication systems, computer rental, media production, and creative services are available, as is a professional on-site catering staff.
Las Vegas' hotels continue to introduce new attractions and nightlife options. The Las Vegas Hilton (which last June adopted Passkey technology to manage its online housing for all types of events and meetings) has enhanced its "StarTrek: The Experience" motion simulator attraction and museum with "Borg Invasion 4D." Located on a 59-acre expanse of land a few blocks from the Las Vegas Strip, the Las Vegas Hilton hosts groups in more than 200,000 square feet of function space, which now boasts new carpeting, wall coverings, and paint.
Circus Circus is the home of the new SpongeBob SquarePants 4D ride, and the Stratosphere has opened Insanity, billed as the world's fourth-highest thrill ride.
In new nightlife, PURE, a nightclub with panoramic views of the Las Vegas Strip, has made its debut at Caesars Palace, while The Venetian has unveiled Vivid, a 9,000-square-foot nightclub. The new JET, at The Mirage, features three dance floors and four bars. The newest Broadway show to hit Las Vegas at the Luxor is "Hairspray," and a $30 million opera house will open at The Venetian to showcase its new production of Andrew Lloyd Weber's "Phantom of the Opera."
ATLANTIC CITY
The ACCVA has embarked on a course to promote the destination as a venue for meetings that draw from a nationwide base of attendees. "Regional meetings, including regional association meetings, have long been a mainstay of our business," Musich said. "But now we're working on attracting larger national meetings, which should be easier now that Delta offers direct service into Atlantic City International Airport." Delta Connection carrier Atlantic Southeast Airlines now operates one daily round-trip flight between Atlantic City and Atlanta, Delta's largest hub.
To help achieve its goal, the ACCVA this past February launched www.meetinac.com, a Web site dedicated to assist planners interested in researching or booking meetings in Atlantic City hotels, casinos, or the Atlantic City Convention Center. The Web site includes a request for proposal (RFP) form planners can use to electronically solicit proposals from these facilities as well as information about ACCVA services for meeting planners.
Meanwhile, as is true in Las Vegas, Atlantic City hotel additions and expansions, along with the debut of new attractions, remain on a steady course. This year, the Borgata Hotel Casino & Spa will unveil a $200 million, 500,000-square-foot expansion with new casino space for an additional 600 slots, 36 table games, and more poker; restaurants by Bobby Flay, Michael Mina, and Wolfgang Puck; a nightclub; an expanded spa and retail space. A second phase of the project, expected to open next year, will feature a 43-story tower with 800 guest rooms.
On the heels of Chapter 11 reorganization, the Trump Organization has opted to pursue a plan for a $110 million renovation of its three Atlantic City properties. The initiative is expected to involve a conversion of a corridor leading from the Trump Taj Mahal's parking garage into a promenade housing new stores and restaurants; a redo of the Boardwalk façade of the Trump Plaza Hotel & Casino and modifications to that property's lobby; and renovations of the Trump Marina Hotel Casino's meeting and convention space (including a new restaurant).
On the restaurant front, Caesars Atlantic City has unveiled a branch of Morton's The Steakhouse, as well as an Italian bistro-style restaurant called Mia. Harrah's Atlantic City now offers Polistana's Italian Ristorante, specializing in family-style service.
Also on the shopping and dining front, Harrah's Entertainment is rebuilding the Ocean One Boardwalk shopping mall into The Pier at Caesars. Situated across the Boardwalk from Caesars Atlantic City, the retail, dining, and entertainment complex will open this summer and will house a number of "first-in-the-region" stores, among them Gucci, Hugo Boss, Louis Vuitton, Armani A/X, Bebe, and Burberry. Restaurants will include Philadelphia restaurateur Stephen Starr's Buddakan and Continental, as well as Phillips Seafood of Baltimore. Atlantic City Outlets - The Walk, a $76 million, 320,000-square-foot upscale retail outlet, entertainment, and dining district, has created a shopping mecca in downtown Atlantic City. Phase Two of the development is now being planned and will add an additional 350,000 square feet of stores, eateries, parking, entertainment, and office/residential units.
Gallagher's Steakhouse, which is renowned for having served the first "New York Strip Steak," has made its debut at Resorts Atlantic City, as have Luna Lounge and the Catch a Rising Star Comedy Club. Showboat - The Mardi Gras Casino is now home to the 10th largest House of Blues, which features a casino and poker room, and a restaurant serving the House of Blues Sunday Brunch with live gospel performances.
RENO-TAHOE
In Reno, the Reno Hilton has entered a sales agreement with Grand Sierra Resort & Casino to transform the latter into retail space, condominiums, and a 150,000-square -foot water park (the first of its kind on the West Coast and the largest indoor water park in the country). The hotel's interior will be renovated to resemble a traditional Lake Tahoe lodge and 100,000 square feet of retail space will be added along with an upgrade of the spa facility and midway arcade. New amenities and attractions will also be added.
The Reno Hilton itself offers 1,995 guest rooms, more than 200,000 square feet of meeting space, and 45 breakout rooms. Among the many groups that have availed themselves of the hotel and its facilities include the American Institute of Aeronautics and Astronautics, Wild West Vets, and the American Association of Airport Executives.
Station Casinos Inc. is awaiting the green light to proceed with its first Reno-based project. Work on the project, which would include the construction of hotel rooms, meeting space, dining and entertainment venues, gaming, a bowling center, and an ice skating rink, will begin between mid-2008 and late 2009 if approval is received by this summer. Station Casinos is slated to begin a second project on an eight-acre parcel of land directly across the street from the Reno-Sparks Convention Center, to include 200 to 500 guest rooms, a 1,195-space parking garage, several dining options, a 60,000-square-foot casino, and meeting and convention space.
Meanwhile, the summer of 2007 has been set as the opening date of the Downtown Reno Ballroom, a 28,000-square-foot ballroom facility under construction across the street from the Reno Events Center and the National Bowling Stadium. The ballroom will offer a main space divisible into five sections, a 4,700-square-foot prefunction salon, and 5,700 square feet of dedicated banquet kitchen amenities.
Reno also has a new shopping and lifestyle center: the Summit Sierra, located at the intersection of U.S. 395 and the Mt. Rose Highway. The mall is centered around an outdoor theme featuring fountains, patios, paths, fire pits, shaded sitting areas, and extensive landscaping. It consists of 70 dining, shopping, and entertainment venues on a 180-acre parcel of land.
Infrastructure improvements are afoot in the city as well. The city of Reno has completed ReTRAC, a project designed to separate train traffic from vehicular traffic downtown by relocating trains to the bottom of a 33-foot-deep trench below the old tracks. ReTRAC was intended to result in a safer, cleaner, easier-to-negotiate downtown area.
And, Dec. 1, 2006 is the anticipated completion date of Reno's Virginia Street Reconfiguration Project. The project involves the narrowing of Virginia Street from the 10 North Virginia Street Plaza north to I-80, to allow for the installation of wider, pedestrian-friendly, tree-lined sidewalks and to revitalize the entertainment core of downtown Reno.
MISSISSIPPI GULF COAST
The Mississippi Gulf Coast area is on the road to recovering from the devastation wrought by Hurricane Katrina. Prior to the storm, the Mississippi Coast Coliseum & Convention Center was a few months away from breaking ground on a 250,000-square-foot expansion and renovation. "Although the damage was extensive, with mostly everything under five-and-a-half feet of water, we expect to open the arena component of the center this month," stated Richer, adding that depending on hotel room availability, the existing convention center is expected to reopen in January of 2007. Plans for the expansion are still moving forward, and the opening date is projected to be mid-2008.
Several of the area's hotels and casinos have already reopened, including the IP Hotel & Casino, the Isle of Capri Casino Resort, and the Palace Casino Resort. The Beau Rivage Hotel and Casino, which is currently undergoing a $400 million upgrade, will once again begin hosting visitors this coming August, followed by the Copa Casino (formerly the Grand Casino Gulfport) and the Grand Casino Biloxi in late summer 2006; Treasure Bay Casino and Resort in September of 2006; the Silver Slipper Lakeshore (which was under construction when Katrina hit) in early October of 2006; and the Casino Magic Bay St. Louis, and Boomtown Biloxi, both in late 2006.
Work is also continuing on Bacaran Bay, a new property scheduled to open in Biloxi in 2008. The first all-suite hotel on the Mississippi Gulf Coast, Bacaran Bay will feature 646 suites, 432 condominiums, a 75,000-square-foot casino, a 40-lane bowling alley, a spa, an 18-hole championship golf course, and more than 85,000 square feet of convention and meeting space.
Additionally, in late March, the Biloxi City Council approved a $1 billion proposal to build two casinos - one as part of a resort on the site of the former President Casino and another south of U.S. 90. Pending a final nod by a review committee, the resort - to be known as the Broadwater Hotel - will, in addition to a casino, feature 1,900 hotel room units and 3,375 condominiums, plus an 18-hole golf course and possible condominiums to be built on the site of the former Broadwater Sun Golf Course. The 180-acre golf course will feature retail shops along its edges.
Finally, the Mississippi Senate agreed this past winter to allow Mississippi's hurricane-battered coastal casinos to move 800 feet onto shore.

