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Apollo Global CEO Unveils Plans for $1 Billion Venetian Remodel
By Jeff Osienya Oct 19, 2022 IndustryFollowing the purchase of The Venetian Resort, Venetian Expo. and Palazzo, early last year, Apollo Global Management has unveiled plans for billion-dollar upgrades. Here’s a look into what we should expect in the upcoming remodel.The Venetian Resort Las Vegas, an iconic property in Sin City well known for its replica gondolas and canals, is getting a $1 billion renovation. When Apollo Global Management acquired The Venetian Las Vegas in February 2022, the renowned private equity company made a commitment to continue investing in upgrading the property. True to their word, the huge investment will focus on offering guests the ultimate experience.
In an exclusive interview with Travel + Leisure, the new CEO of The Venetian, Patrick Nichols, said in part:
Quote“We are looking to elevate our experiences resort wide. Arrival experiences will be different. For both the Venetian and the Palazzo, we plan to renovate, remodel, and redesign all of our suites. We will be offering a number of new [food-and-beverage] concepts, we are taking a deep look at entertainment, nightlife, and bar offerings, and the casino floor will feel significantly different as well.”
The End of An Era
Opened in 1999, The Venetian might not be the oldest resort in Vegas, but it is one of the biggest, with 36 stories and over 475 feet tall. Additionally, it is home to the Palazzo Resort, the second-largest hotel in the world. Its construction cost a whopping $1.5 billion, making it the most expensive integrated resort at the time.
Come March last year; Las Vegas Sands revealed it had put The Venetian Resort, Venetian Expo. and Palazzo up for sale for $6.25 billion, ending its three-decade presence on the Vegas strip. In the purchase agreement, VICI paid $4 billion for the land plus a further 19 acres off Koval drive, where the Madison Square Garden sphere entertainment venue is already under construction. At the same time, the Apollo fund, a private equity investment firm, paid $2.25 billion for the operating rights.
It’s vital to note that the $1 billion set aside by Apollo to renovate the Venetian is a perk for the real estate investment trust (REIT) VICI. That’s because, based on the terms of the lease structures common in the gaming sector, operators and not landlords are in charge of property refurbishments and maintenance.
Big Plans in Place for the Remodel
To achieve their goal, Apollo has partnered with Los Angeles-based design collective RIOS. Renovations have already been slated to overhaul the Venetian pool deck, a $50 million TAO Beach Dayclub in collaboration with the TAO Group, and the first outpost location for Michelin-star chef Tetsuya Wakuda. In addition, the TAO Beach Dayclub will hold a weekly nighttime poolside soirée.
Additionally, construction is already underway at the Palazzo resort, and Apollo is already working on spaces. Two of those spaces will be occupied by restaurants owned by celebrated chef Eyal Shani, providing the first’s Israeli dining experiences in Vegas. Miznon restaurant chain, which is currently in locations such as New York, Tel Aviv, Singapore, and Paris, will open later this year in one of the spaces. Whereas the second space, which will be opened in the spring of next year, will be occupied by Shani’s fancy restaurant HaSalon.
People familiar with HaSalon’s other locations in Ibiza, Tel Aviv, and New York know they expect pleasant dining of Mediterranean dishes. The idea to bring Shani on board was from Michael Gruber, Venetian’s chief content officer. According to Gruber, for the past five years, the Venetian has produces 70 to 110 shows every year, and with HaSalon and Miznon open on the property, the shows will increase to 700 to 1000 every year.
Additionally, the property has partnered with Madison Square Garden Entertainment to construct a $1.8 billion MSG sphere venue in time for the F1 Las Vegas grand Prix in November 2023. The MSG sphere is expected to be one of the largest spherical structures in the world, which can accommodate up to 20,000 people and a 160,000-square-feet captivating display. According to Nichols, the MSG sphere will be a game-changer and a massive asset to the Venetian. Patrons will be able to walk from the property’s indoors and catch a show or visit an attraction during the day.
Something New, Something Borrowed
When the Venetian was unveiled in 1999, its theme was based in Venice, Italy, with architectural replicas of landmarks like Piazza San Marco, Rialto Bridge, and Palazzo Ducale. Nichols has emphasized that the Italian theme will remain even with the renovations adding that:
Quote“We are a themed hotel, and we will always be a themed hotel. That sets us apart, but the Italy of the ’90s that The Venetian was modeled after has evolved. If we are able to lean into that through the spirit of Italy and discovery, we are not going to look like just another hotel that has refreshed their rooms.”
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