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Delano To Be In Vegas For At Least 10 Years

November 5, 2012 at 11:39 AM | by | Comments (4)

Delano, Miami style.

The Delano won't officially take over THEhotel at Mandalay Bay until the end of 2013, but when it does expect the brand to stay on the Vegas Strip for at least a decade.

During its quarterly earnings report on Friday, Morgans Hotel Group (Delano's parent brand) stated that its agreement with MGM Resorts (Mandalay's parent group) would be part of a 10-year licensing agreement, with the ability to tack on two five-year extensions. To bring the Delano brand to Las Vegas, MGM Resorts has agreed to foot all the costs of the renovations and will manage the new property, too, while Morgans will kick back and collect (some of) the dough:

Under the license agreement, the Company (Morgans) will earn a base fee, subject to increase based on its development and brand expansion, and the Company can earn an incentive fee based on Delano Las Vegas’ RevPAR in its competitive set.

The report also drops the digits on how much Morgans paid for three Mandalay restaurants -- Red, White and Blue (shuttering November 18), Red Square (already closed for remodeling) and China Grill (shuttering soon) -- $15 mil in cash and an additional $10.6 mil to be paid over seven years. That pricetag will get them 10-year operating leases for the venues which will be "reconcepted" and run by The Light Group.

RW&B will become Citizens Kitchen, a 24-hour 'American bistro,' Red Square will stay Red Square but with a fresher coat of red, and China Grill will become an as yet, unnamed concept by Chef Akira Back who currently runs our fave, the very yummy Yellowtail at Bellagio.

(PHOTO: dandy-magazine.com)

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Miami style

Here's hoping they leave that style in Miami.  Can you imagine waking up in one those rooms after a long night?
I bet scotchgard is hoping they go with that style.
franko on November 5, 2012 at 11:58 AM #Permalink

Too much white......

Has any sort of start date for the room renovations been announced?  I'm looking at stay at THE Hotel in May and to be honest, I don't want to end up with ones of these rooms.  This room looks like it should be down the street at the Tropicana.....
Steven R Brown on November 5, 2012 at 1:53 PM #Permalink

@Steven R Brown

Floor-by-floor renovations will start this summer but we haven't heard a specific month yet.
702Becca on November 5, 2012 at 3:00 PM #Permalink
Parent

40 Years In "Vegas Years"

10 years is FOREVER in Vegas years (think "dog years"). Delano could be a passe brand long before then as times and trends change here in Las Vegas. Long time to be tied to an agreement of that nature.

As a straight male, I wouldn't want to stay in the room pictured regardless of city. Don't get me wrong; when in Miami, some of the pastels come with the territory. But this pink and white looks like something out of a designer magazine aimed at 60 year old females.

AccessVegas on November 5, 2012 at 6:25 PM #Permalink

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