Vegas to open new luxury resort worth $3.7 billion

September 22, 2023 World Casino & Hotel

Florida-based developer Jeff Soffer is unveiling Fontainebleau Las Vegas on December 13, a $3.7 billion luxury resort featuring seven pools, 36 dining establishments, and a top-floor private club with sweeping skyline views. The new resort boasts a 67-story stature, making it Nevada’s tallest hotel, and a 46-foot sculpture by Swiss artist Urs Fischer in the lobby.

A project that took 23 years to complete, Soffer initially acquired the land in 2000 but relinquished control during the 2008-2009 financial crisis. After passing through several hands, including a period under billionaire Carl Icahn’s ownership, Soffer repossessed the unfinished property in 2021 at a fraction of its original cost.

To promote the Nevada property, Soffer plans to tap into his Miami Beach guest database, as many patrons frequent both locations. He also intends to enlist his circle of celebrity acquaintances for the grand opening.

Situated on the north end of the Strip, the Fontainebleau faces a challenge due to its distance from popular establishments like the Bellagio and Caesars Palace. Nonetheless, Soffer maintains confidence in the resort’s potential, especially its proximity to the city’s convention center, which could attract business travelers on weekdays.

Soffer acknowledges the competitive market but believes that his loyal, affluent patrons prioritize convenience. With 3,644 rooms, rates will begin at $300 per night, positioning Fontainebleau as a luxury destination.

The Fontainebleau’s history is marked by setbacks and resurrections. Initially intended to incorporate condominiums, the project encountered financial difficulties in 2009. Icahn purchased it for $156.1 million, and the building served various purposes, including firefighter training. Later, New York developer Steven Witkoff acquired it, but his plans faltered during the pandemic. Soffer reclaimed the project at a lower price, partnering with the real estate arm of Koch Industries and securing $2.2 billion in financing from a JPMorgan Chase-led consortium.

Soffer acknowledges the substantial investment but believes it’s justified to establish Fontainebleau Las Vegas as the city’s premier luxury destination.