Tropicana phasing in change
One of the Strip’s most well-known brands has been quietly undergoing an upgrade to better compete against its neighbors, the MGM Grand, New York-New York and Excalibur.
The remodel began shortly after former MGM Mirage executive Alex Yemenidjian and Onex Corp. acquired the Tropicana in July 2009.
Work started in the back of the house, with a new employee dining room, a new break room and new employee uniforms.
"If you ask your team to do a good job, you have to create an environment for them to a good job," said Thomas McCartney, the Tropicana’s president and chief operating officer.
McCartney, an industry veteran known for turning around outdated properties, said the hotel was close to completing the first phase of its $180 million remodel. He said next phase was in development.
When asked whether the second phase was just an excuse to hold capital in reserve to fix what didn’t work in the first phase, McCartney answered, "No." He said Tropicana hasn’t made an official announcement simply because the plans are not complete.
"Phase 2 is really focused on entertainment," he said. "We are looking at redefining our main entertainment venue, our showroom."
The 1,375 guest rooms in both towers and the 60,000-square-foot conference center are finished. The casino upgrades have been completed, with the exception of the poker room, which will be finished on April 15.
The upgrades also feature a remodeled steakhouse, a second entrance on Tropicana Avenue, a new health spa and the front desk.
McCartney said the hotel’s Italian restaurant, Bacio, was being rebranded and taken over by a celebrity chef. He declined further comment.
The Las Vegas Mob Experience is on schedule to open March 30.
The changes at the Tropicana have also brought with them a South Beach vibe with the introduction of the Nikki Beach brand, founded in 1996 by Jack Penrod in Miami.
McCartney strongly believes adding the Nikki Beach lifestyle brand will be key to properly repositioning the hotel. The property will feature a Cafe Nikki, Club Nikki and Nikki Beach Club, which should be completed by late May.
"We liked the brand. It originated in South Beach, which is the feel we are trying to re-create for this property," he said. "It really symbolizes the whole South Beach lifestyle of sun, fun, laid back … enjoying life."
The Tropicana also plans to get more guests to slip into its remodeled casino and rooms, and the hotel is going back to a familiar business model: value and customer service.
"I think we appeal to a broader range of customer," McCartney said. "We don’t attract the very young or very old. We are not the low price leader or the high price leader in the market. We are in the middle market of Las Vegas."
McCartney said that middle market in Las Vegas could change depending on what time of year or week it is. During midweek in the spring and the fall, it’s a significant amount of convention business, while the weekends tend to attract a younger crowd.
"The key to this industry is continually reinvesting and keeping the place relevant and fresh and compelling to the customer," he said.
To be relevant again investors will pour $180 million into the Tropicana.
"The property had not be invested in in many, many years, so there was a lot of curiosity from the employees and the community … about what was going to be done," he said.
McCartney took over in December 2009 at a time when morale and the perception of the Tropicana were at an all-time low. He moved south along the Strip after spending about a year as president of Planet Hollywood Resort.
Being president of the Tropicana was another opportunity to reposition a struggling property. It was also a chance to work again with Tropicana CEO Yemenidjian, whom he had worked with at New York-New York.
"The opportunity to rebrand or reposition a property is very exciting," McCartney said. "It gives you an opportunity to take your experiences of understanding the pulse of a market and to reposition the property to fit into that stream of demand that is occurring at that time."
McCartney said his first opportunity in Las Vegas came with the opening of New York-New York.
"But after a couple of years, we decided to reposition New York-New York by bringing in different brands to appeal to the market."
He said the property added a Cirque du Soleil show, a Nine Fine Irishmen pub, and an ESPN Zone, which helped lift the property to another level on the Strip. McCartney was then asked to help reposition the Luxor.
"There had been no reinvestment in (the Luxor) at all in many, many years," he said. "It was really kind of stuck in time. So we had the opportunity to go in and bring new life to the property."
McCartney explained that the rebranding of the Luxor was similar in many ways to the Tropicana; it was about building "a more contemporary look to the property." With the Luxor, the Egyptian theme was played down — no more Pharaoh’s feast or Sultan suites — with nightclubs and upgraded restaurants added, benefiting the bottom line and vaulting the property into a new category.
"We were pretty much a dormitory, people would stay at the hotel and spend their day everywhere else. So by putting attractions in the property, redefining its attitude and who the customer was we were reaching for, we saw an immediate benefit."
That benefit was reflected in increased food and beverage, and gaming revenues, along with better average daily room rates, he said.
At the Tropicana, the awareness of the brand is indisputable; But McCartney faces the difficult task of changing the perception, real or otherwise, of hotel that was built in 1957 and is now outdated.
"We are in the process of changing the perception of the brand," he said. "We’ll change it by first transforming the property and, equally if not more important, is the service offered at the property."
He said the ability to create a relationship with guests and offer a diversity of experiences will define the success of the Tropicana.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
