Fontainebleau Resort Las Vegas
Encyclopedia
Fontainebleau Las Vegas is a US$2.9 billion, 3,889-room, 68-story hotel
/condo-hotel
/casino
development under construction near the north end of the Las Vegas Strip
on the 24.5 acres (9.9 ha) site previously occupied by the El Rancho
and Algiers hotels in Las Vegas
, Nevada
. It was intended to be a sister property to the well-known 1950s-era Fontainebleau Miami Beach.
The project, when completed, is expected to include: a 95000 sq ft (8,825.8 m²) casino, a 60000 sq ft (5,574.2 m²) spa, 3,300-seat performing arts theater, 1,018 condo-hotel units, 180000 sq ft (16,722.5 m²) of retail space, 400000 sq ft (37,161.2 m²) of indoor and outdoor conference space, nightclubs, and 24 restaurants and lounges.
The building was designed by Carlos Zapata Studio with Bergman Walls Associates as the architect of record.
Groundbreaking was officially announced to have begun on April 30, 2007, but preliminary construction had been underway for over three months. Gaming revenue on the Las Vegas Strip peaked at the end of October, 2007. The tower was topped out on November 2008.
CEO Glenn Schaeffer, the former chief financial officer of Mandalay Resort Group
, which generated record profits before it was sold to MGM Mirage
in 2005, left Fontainebleau Resorts without comment in May 2009. Schaeffer was primarily responsible for securing more than US$3 billion in loans for the project.
Also, Bank of America
, the resort's largest lender, refused to provide financing on its committed line of credit for the project around this time; as a result, the resort's operator, Fontainebleau Las Vegas LLC, filed for Chapter 11 bankruptcy protection in June 2009. In a move seen as an attempt to force creditors to supply funding, Fontainebleau's owner sued himself in the form of the general contractor suing the hotel ownership company - both controlled by the same individual, Turnberry Associates
CEO Jeffrey Soffer. Construction work has stopped on the project, which is about 70 percent complete; the grand opening had been scheduled for October 2009. In July 2009, the resort sought permission in bankruptcy court to cancel events that were scheduled for the first half of 2010, as well as permission to cancel a lease for office space which was to be used for Fontainebleau's employee recruitment center.
In October 2009, Penn National Gaming
was considering purchasing the partially completed resort and the 24.5 acres (9.9 ha) of land for US$300 million. At that rate the land was being sold for US$12.25 million per acre. Two years earlier land was going for over US$30 million per acre on the Strip. Over US$2 billion has already been invested in the topped out building on the site. Penn National has been looking for an opportunity to enter the Las Vegas gaming market.
on November 23, 2009, corporate raider and financier Carl Icahn
who until 2008 controlled major casino/resort operator American Casino & Entertainment Properties
offered US$156 million in cash and financing, outbidding Penn National Gaming for control of the Fontainebleau. Icahn's bid includes a US$51 million debtor-in-possession loan, which, until the resort is auctioned, will provide funding to stabilize the building, cover employees' salaries, cover previous costs and eliminate the need for the resort to ask the bankruptcy court each week to borrow and spend money. Penn National dropped out of the bidding after going as high as US$145 million; they had offered US$101.5 million in cash and loans.
As of November 2009, the cost to complete the resort is an estimated US$1 to 1.5 billion. On December 29, 2009, PLANTworldwide Chairman Brett Plant announced that the he would contribute US$500 million to ease the bankruptcy predictions and by doing so increasing his stake in the hotel.
On February 18, 2010, Carl Icahn assumed part-ownership of the project without an auction by being the only qualified bidder, paying US$150 million.
In October 2010, owner Carl Icahn
auctioned off the furnishings previously intended for the building. For example, the Plaza Hotel & Casino
in Downtown Las Vegas bought rugs, furniture and mattresses from the sale and is using them in a refurbishment scheduled to be complete in mid-2011. Future plans for the hotel project have not yet been disclosed to the public.
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
/condo-hotel
Condo-hotel
A condo hotel, also known as a hotel-condo or a Condotel, is a building used as both a condominium and a hotel.Condo hotels are typically high-rise buildings developed and operated as luxury hotels, usually in major cities and resorts. These hotels have condominium units which allow someone to own...
/casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
development under construction near the north end of the Las Vegas Strip
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
on the 24.5 acres (9.9 ha) site previously occupied by the El Rancho
El Rancho Casino
The El Rancho Casino was a hotel and casino located on The Las Vegas Strip.-History :Constructed on the site of the Thunderbird that opened in September 1948. In 1976, it was renamed the Silverbird. On August 31, 1982, it was renamed Ed Torres' El Rancho...
and Algiers hotels in Las Vegas
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
. It was intended to be a sister property to the well-known 1950s-era Fontainebleau Miami Beach.
The project, when completed, is expected to include: a 95000 sq ft (8,825.8 m²) casino, a 60000 sq ft (5,574.2 m²) spa, 3,300-seat performing arts theater, 1,018 condo-hotel units, 180000 sq ft (16,722.5 m²) of retail space, 400000 sq ft (37,161.2 m²) of indoor and outdoor conference space, nightclubs, and 24 restaurants and lounges.
The building was designed by Carlos Zapata Studio with Bergman Walls Associates as the architect of record.
Groundbreaking was officially announced to have begun on April 30, 2007, but preliminary construction had been underway for over three months. Gaming revenue on the Las Vegas Strip peaked at the end of October, 2007. The tower was topped out on November 2008.
Bankruptcy
Fontainebleau ResortsFontainebleau Resorts
Fontainebleau Resorts, LLC, is a resort-hotel company started by South Florida real estate developers Turnberry Associates and the Plant family in 2005 after their purchase of the famous Fontainebleau Hotel in Miami Beach, Florida. The two families have a 50% stake in the company each...
CEO Glenn Schaeffer, the former chief financial officer of Mandalay Resort Group
Mandalay Resort Group
Mandalay Resort Group was a hotel-casino operator based in Las Vegas, Nevada. Its major properties included Mandalay Bay, Luxor, Excalibur and Circus Circus, as well as half of the Monte Carlo. In terms of market capitalization, it was one of the largest casino operators in the world. It was...
, which generated record profits before it was sold to MGM Mirage
MGM Mirage
Not to be confused with the Las Vegas, Nevada based casino/resort operator Resorts International Holdings.MGM Resorts International is a Paradise, Nevada based corporation that brands itself as a global hospitality company. It is the second largest gaming company in the world by revenue - about...
in 2005, left Fontainebleau Resorts without comment in May 2009. Schaeffer was primarily responsible for securing more than US$3 billion in loans for the project.
Also, Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
, the resort's largest lender, refused to provide financing on its committed line of credit for the project around this time; as a result, the resort's operator, Fontainebleau Las Vegas LLC, filed for Chapter 11 bankruptcy protection in June 2009. In a move seen as an attempt to force creditors to supply funding, Fontainebleau's owner sued himself in the form of the general contractor suing the hotel ownership company - both controlled by the same individual, Turnberry Associates
Turnberry Associates
Turnberry Associates is an American real estate developer in residential, retail, hospitality and office. The company has developed more than $7 billion in commercial and residential property, including approximately of retail space, more than 7,000 condominium and condo-hotel residences, of...
CEO Jeffrey Soffer. Construction work has stopped on the project, which is about 70 percent complete; the grand opening had been scheduled for October 2009. In July 2009, the resort sought permission in bankruptcy court to cancel events that were scheduled for the first half of 2010, as well as permission to cancel a lease for office space which was to be used for Fontainebleau's employee recruitment center.
In October 2009, Penn National Gaming
Penn National Gaming
Penn National Gaming, Inc. is a diversified owner and operator of casino properties, as well as horse racetracks and associated off-track betting facilities primarily in the United States...
was considering purchasing the partially completed resort and the 24.5 acres (9.9 ha) of land for US$300 million. At that rate the land was being sold for US$12.25 million per acre. Two years earlier land was going for over US$30 million per acre on the Strip. Over US$2 billion has already been invested in the topped out building on the site. Penn National has been looking for an opportunity to enter the Las Vegas gaming market.
Carl Icahn purchase
However, in bankruptcy court in Miami, FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
on November 23, 2009, corporate raider and financier Carl Icahn
Carl Icahn
Carl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
who until 2008 controlled major casino/resort operator American Casino & Entertainment Properties
American Casino & Entertainment Properties
American Casino & Entertainment Properties is a casino holding company headquartered at the Stratosphere Las Vegas. ACEP was a wholly owned subsidiary of American Real Estate Partners before it was sold to Whitehall Street Real Estate Funds in February 2008...
offered US$156 million in cash and financing, outbidding Penn National Gaming for control of the Fontainebleau. Icahn's bid includes a US$51 million debtor-in-possession loan, which, until the resort is auctioned, will provide funding to stabilize the building, cover employees' salaries, cover previous costs and eliminate the need for the resort to ask the bankruptcy court each week to borrow and spend money. Penn National dropped out of the bidding after going as high as US$145 million; they had offered US$101.5 million in cash and loans.
As of November 2009, the cost to complete the resort is an estimated US$1 to 1.5 billion. On December 29, 2009, PLANTworldwide Chairman Brett Plant announced that the he would contribute US$500 million to ease the bankruptcy predictions and by doing so increasing his stake in the hotel.
On February 18, 2010, Carl Icahn assumed part-ownership of the project without an auction by being the only qualified bidder, paying US$150 million.
In October 2010, owner Carl Icahn
Carl Icahn
Carl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
auctioned off the furnishings previously intended for the building. For example, the Plaza Hotel & Casino
Plaza Hotel & Casino
The Plaza Hotel & Casino is a casino-hotel located in downtown Las Vegas, Nevada owned by the Tamares Group and Play LV is the leaseholder and operator of the property. It currently has 1,037 rooms and suites, as well as an casino and there is more than of event space...
in Downtown Las Vegas bought rugs, furniture and mattresses from the sale and is using them in a refurbishment scheduled to be complete in mid-2011. Future plans for the hotel project have not yet been disclosed to the public.