Hard Rock and the SLS Syndrome
Hard Rock Has a Problem
The Hard Rock Hotel & Casino Las Vegas, currently under development in what was formerly the Mirage, is experiencing an issue. Actually, several problems that I think will cause it severe financial issues once it opens in 2027 or 2028.
The biggest issue I see right now is what I call the SLS Syndrome.
The SLS Syndrome
In 2007, SBE Entertainment Group bought the Sahara Resort. In 2011, they shut the resort down to “renovate and repostion” the resort. The Sahara would be renamed as SLS Las Vegas, part of SBE's growing chain of SLS-branded hotels in the United States.
SLS stands for Style, Luxury, and Service. As an SLS resort, it would become a luxurious, boutique hotel offering a Beverly Hills experience.
They were betting on their Hollywood connections to fill the overpriced rooms and restaurants. In their mind, it was the brand that people would be attracted to. Not so much as the location and the view.
The View?
As the resort hemorrhaged money almost from day one, management sent out the message, Don’t worry about the views; that’s not important. Their guests are there for the SLS experience, Vegas-style.
Look out your $400 a night windows and see the Strip, ok, you have to look around the Big Blue Silo, but it’s there! Or look the other way and see Crack Alley and Naked City. But that’s not an issue to an SLS guest.
Apparently, in their mind, people who are the SLS clientele will be too busy enjoying the over-the-top SLS service, its choices of fine dining and gambling in the modern casino, to be concerned about the view from their ultra-chic, ultra-priced hotel suites.
They were wrong. That way of thinking, combined with licensing issues and ownership concerns, ultimately doomed the SLS. In 2019, the SLS was out, the Sahara was back.
Conclusion
Brands have a difficult time opening shop on the Las Vegas strip. They think they know what they are doing. They come in with the attitude that what works for them in LA or Hollywood or Miami, HAS TO work in Las Vegas. It doesn’t.
The Vegas business boneyard is filled with companies that came here with that way of thinking. Then, upon opening, they found that Las Vegas is not just a different city; this is a different universe for doing business.
The way Hard Rock seems to be thinking is that people didn't come here to see a volcano. They will come here to see a hotel tower in the shape of a guitar.
Your Thoughts?
The SLS Syndrome: Paying for a “Strip view” room blocked by the guitar will not be a problem, because this is the Hard Rock. You will want to stay here because of the brand. It works in Florida, so it will work here! It’s the brand that counts!
Do you think this will happen? And if so, will it cause a problem once the novelty of the new hotel wears off?