1 00:00:00,080 --> 00:00:02,639 Speaker 1: After nearly two decades in the making, the Fountain Blue 2 00:00:02,720 --> 00:00:05,280 Speaker 1: Las Vegas is finally up and running, just in time 3 00:00:05,320 --> 00:00:08,360 Speaker 1: for New Years. The luxury real estate and hospitality brand 4 00:00:08,400 --> 00:00:11,039 Speaker 1: has long been a staple of Miami, Florida, and now 5 00:00:11,039 --> 00:00:13,920 Speaker 1: it's building a new legacy in the Southwest. And for more, 6 00:00:13,920 --> 00:00:15,720 Speaker 1: we're going to bring in Jeffrey so for he's the 7 00:00:15,800 --> 00:00:18,720 Speaker 1: chairman and CEO of Fountain Blue Development and he's joining 8 00:00:18,800 --> 00:00:22,400 Speaker 1: us now from Las Vegas out of curiosity. How much 9 00:00:22,520 --> 00:00:26,200 Speaker 1: more potential do you see in Las Vegas, especially relative 10 00:00:26,280 --> 00:00:28,840 Speaker 1: to Miami. As we know, Miami has been a very 11 00:00:28,880 --> 00:00:30,480 Speaker 1: hot destination in recent years. 12 00:00:31,240 --> 00:00:33,400 Speaker 2: I mean it's it's been a very strong, you know, 13 00:00:33,479 --> 00:00:36,800 Speaker 2: robust market year, especially the numbers of record breaking numbers 14 00:00:36,800 --> 00:00:38,760 Speaker 2: that had last year and I think the year before 15 00:00:38,800 --> 00:00:41,959 Speaker 2: as well, it's come back very strong. So I mean, obviously, 16 00:00:42,159 --> 00:00:44,640 Speaker 2: you know, I think that there's a you know, there's 17 00:00:44,840 --> 00:00:47,159 Speaker 2: people have discovered Las Vegas in other ways than it's 18 00:00:47,280 --> 00:00:49,479 Speaker 2: just just from a gambling aspect, which is you know, 19 00:00:49,600 --> 00:00:52,160 Speaker 2: transition through over the years. So it's you know, it's 20 00:00:52,159 --> 00:00:58,200 Speaker 2: really a major resort and vacation and business mention talent 21 00:00:58,240 --> 00:00:58,600 Speaker 2: as well. 22 00:00:59,320 --> 00:01:02,040 Speaker 1: Well. One thing that a lot of people are worried about, Jeffrey, 23 00:01:02,120 --> 00:01:04,800 Speaker 1: is that the consumer might slow down. You look at 24 00:01:04,840 --> 00:01:07,920 Speaker 1: what this year look like, and people were so excited 25 00:01:07,959 --> 00:01:10,160 Speaker 1: to get back on the road, get back to destinations, 26 00:01:10,160 --> 00:01:12,679 Speaker 1: go to places like Las Vegas, spend a little money. 27 00:01:13,280 --> 00:01:16,360 Speaker 1: But now you are watching consumers starting to get a 28 00:01:16,360 --> 00:01:19,160 Speaker 1: little more strapped. So what is the type of consumer 29 00:01:19,200 --> 00:01:21,959 Speaker 1: you're looking out for and do you think that certain 30 00:01:22,440 --> 00:01:25,520 Speaker 1: types of customers might start to pull back into next year. 31 00:01:26,840 --> 00:01:29,760 Speaker 2: I think, look, obviously that's that's out there, but I 32 00:01:29,840 --> 00:01:31,959 Speaker 2: believe that you know, with what laws Vegas has to 33 00:01:32,000 --> 00:01:34,120 Speaker 2: offer and the way it does it, efficiency of it, 34 00:01:34,160 --> 00:01:36,640 Speaker 2: I think it's you know, it's it's a town that 35 00:01:36,680 --> 00:01:39,360 Speaker 2: has so much to offer at so many different levels 36 00:01:39,400 --> 00:01:42,200 Speaker 2: price levels. So you know, whether it's the group business 37 00:01:42,200 --> 00:01:44,040 Speaker 2: and the meetings during the week or the city wide 38 00:01:44,080 --> 00:01:48,000 Speaker 2: conventions or you know Visaly obviously, you know the tourists 39 00:01:48,000 --> 00:01:50,800 Speaker 2: that you come in on the weekends. It's it's it's 40 00:01:50,840 --> 00:01:55,040 Speaker 2: definitely been a you know, it's proven itself over time, 41 00:01:55,080 --> 00:01:57,440 Speaker 2: and it's you know, it's it's held steady. Obviously, you 42 00:01:57,440 --> 00:02:01,360 Speaker 2: could see some of the extraordinary orbit and spending slowdown, 43 00:02:01,400 --> 00:02:04,080 Speaker 2: but you know, right now. I mean our bookings are strong, 44 00:02:04,120 --> 00:02:06,840 Speaker 2: our convention bookings, our pre bookies are very strong, and 45 00:02:06,880 --> 00:02:08,200 Speaker 2: we're you know, we're growing every day. 46 00:02:08,280 --> 00:02:09,560 Speaker 3: So we're excited. 47 00:02:10,240 --> 00:02:12,800 Speaker 4: Yeah, and congratulations to say it's been a twenty three 48 00:02:12,880 --> 00:02:16,560 Speaker 4: year journey, Jeffrey. So mostly quite something to actually be 49 00:02:16,760 --> 00:02:19,920 Speaker 4: standing in there or sitting there now and watching it 50 00:02:20,440 --> 00:02:23,040 Speaker 4: be open. Sixty seven stories. Tell us a little bit 51 00:02:23,120 --> 00:02:24,600 Speaker 4: more about what you have to offer at Funk in 52 00:02:24,639 --> 00:02:25,520 Speaker 4: Blue in Vegas. 53 00:02:26,280 --> 00:02:29,600 Speaker 2: Well, we have a lot of different food venues, different 54 00:02:29,639 --> 00:02:33,560 Speaker 2: types of food venues, from food promenades to signature restaurants, 55 00:02:33,600 --> 00:02:36,320 Speaker 2: all different types of food. We obviously have a theater 56 00:02:36,480 --> 00:02:39,320 Speaker 2: thirty seven hundred seat theater which we are putting acts 57 00:02:39,320 --> 00:02:41,440 Speaker 2: like we have post Malone playing here for over New 58 00:02:41,480 --> 00:02:45,520 Speaker 2: Years for two nights. Obviously, you know it's a high 59 00:02:45,600 --> 00:02:49,640 Speaker 2: end luxury sort almost fifty eight thousand square footspa. You know, 60 00:02:50,360 --> 00:02:54,960 Speaker 2: you know, major meeting space and convention space, and you 61 00:02:54,960 --> 00:02:57,200 Speaker 2: know it's it's got a mix of everything, and it's 62 00:02:57,280 --> 00:02:59,799 Speaker 2: new and it's designed. It it's obviously people know that 63 00:03:00,080 --> 00:03:02,320 Speaker 2: in because it's been around a long time. But I 64 00:03:02,320 --> 00:03:04,320 Speaker 2: think it's just a little bit of a departure what's 65 00:03:04,320 --> 00:03:06,800 Speaker 2: typically built here in Las Vegas from a theme project. 66 00:03:06,800 --> 00:03:09,280 Speaker 2: It's really designed and a lot of the design elements 67 00:03:09,280 --> 00:03:11,840 Speaker 2: came from the Bound Blue in Miami. So it's it's 68 00:03:12,480 --> 00:03:16,280 Speaker 2: and it's uniquely designed. It's relative to a movement around 69 00:03:16,280 --> 00:03:19,440 Speaker 2: the hotel, so it's definitely a different product than what's 70 00:03:19,440 --> 00:03:20,079 Speaker 2: in this market. 71 00:03:20,520 --> 00:03:24,240 Speaker 4: And interestingly, it's actually the tallest occupiable building in Nevada 72 00:03:24,360 --> 00:03:27,320 Speaker 4: right now, So that must have been some bureaucracy that 73 00:03:27,360 --> 00:03:29,400 Speaker 4: you have to get through in order to be able 74 00:03:29,440 --> 00:03:32,600 Speaker 4: to build the tallest occupiable building in Nevada. Told to 75 00:03:32,639 --> 00:03:34,800 Speaker 4: us about what's working in Vegas right now though, because 76 00:03:34,840 --> 00:03:36,680 Speaker 4: it used to be that it was the casinos that 77 00:03:36,720 --> 00:03:38,200 Speaker 4: made all the money, right, and then it sort of 78 00:03:38,240 --> 00:03:41,880 Speaker 4: became the clubs. Isn't the conventions now or sort of 79 00:03:41,880 --> 00:03:43,800 Speaker 4: break up the percentages roughly for us? 80 00:03:43,840 --> 00:03:46,960 Speaker 2: I think it's obviously gaming has been has gone from 81 00:03:46,960 --> 00:03:50,720 Speaker 2: a dominant majority of the revenue to you know, the minority. Obviously, 82 00:03:50,760 --> 00:03:54,080 Speaker 2: different hotels have different touch percentage of gaming revenue, but 83 00:03:54,200 --> 00:03:58,040 Speaker 2: typically they're around twenty five percent. Obviously, the upper scale 84 00:03:58,080 --> 00:04:00,080 Speaker 2: properties like this one might might do a little what 85 00:04:00,160 --> 00:04:02,720 Speaker 2: we should do more, but you know, obviously I think 86 00:04:02,760 --> 00:04:05,720 Speaker 2: the big changer here is that again these these are resorts. 87 00:04:05,720 --> 00:04:08,280 Speaker 2: This is a full fledged resort, so it offers more 88 00:04:08,320 --> 00:04:11,080 Speaker 2: than just a casino experience, from a dining to shopping 89 00:04:11,200 --> 00:04:13,440 Speaker 2: to you know, obviously all the different things you want 90 00:04:13,440 --> 00:04:16,120 Speaker 2: to see shows in Vegas. And and we went a 91 00:04:16,160 --> 00:04:18,400 Speaker 2: little further with our spot and our and our gym 92 00:04:18,440 --> 00:04:20,719 Speaker 2: product or gymnasium, and I mean the gym product that 93 00:04:20,760 --> 00:04:22,800 Speaker 2: we have here, and of course you know our gaming 94 00:04:22,839 --> 00:04:25,120 Speaker 2: opportunity floors and the type of product we have in 95 00:04:25,160 --> 00:04:27,680 Speaker 2: our upscale, upscale room product that we put up here 96 00:04:27,720 --> 00:04:30,120 Speaker 2: on the top floor or Florida Lee, which is our 97 00:04:30,240 --> 00:04:33,000 Speaker 2: you know, very like Mansons in the Sky type product. 98 00:04:33,120 --> 00:04:35,760 Speaker 2: So it's a you know, you know, we've sort of 99 00:04:36,360 --> 00:04:40,160 Speaker 2: you know, designed this property like after that type of market. 100 00:04:40,240 --> 00:04:43,080 Speaker 2: So but again the market, I think the reason why 101 00:04:43,160 --> 00:04:46,320 Speaker 2: it's exploded pretty well is because of the group. Business 102 00:04:46,360 --> 00:04:49,040 Speaker 2: has gotten bigger and bigger here and companies like coming 103 00:04:49,080 --> 00:04:51,320 Speaker 2: here a meeting and that gave a great foundation to 104 00:04:51,360 --> 00:04:53,800 Speaker 2: be able to drive rates up. And I think that's 105 00:04:53,800 --> 00:04:55,840 Speaker 2: why you're seeing some of the record room rates that 106 00:04:55,880 --> 00:04:56,560 Speaker 2: you've seen here. 107 00:04:56,720 --> 00:04:59,839 Speaker 1: How important is it for Las Vegas And it's attraction 108 00:05:00,120 --> 00:05:01,800 Speaker 1: to be diversifying away from just. 109 00:05:01,800 --> 00:05:06,960 Speaker 2: Gaming, I think extremely extremely important. Obviously, we've focused heavily 110 00:05:06,960 --> 00:05:09,680 Speaker 2: on food and beverage, our restaurant products, the type of 111 00:05:09,680 --> 00:05:12,800 Speaker 2: restaurants we have in different venues that we put in here. Obviously, 112 00:05:13,000 --> 00:05:16,200 Speaker 2: our groups, you know, business, our meeting space configurations of 113 00:05:16,279 --> 00:05:18,000 Speaker 2: we have five hundred and fifty thousand feet of meeting 114 00:05:18,040 --> 00:05:20,599 Speaker 2: space at this property, which is significantly which is a 115 00:05:20,640 --> 00:05:25,480 Speaker 2: lot per key, you know, and it's an important aspect. 116 00:05:25,520 --> 00:05:27,599 Speaker 2: And you know, being the proximity here of being us 117 00:05:27,600 --> 00:05:29,440 Speaker 2: being right next to the convention center gives us I 118 00:05:29,440 --> 00:05:31,200 Speaker 2: think a little bit of advantage with the city wides, 119 00:05:31,200 --> 00:05:34,520 Speaker 2: but it's definitely made a difference in the numbers you're 120 00:05:34,520 --> 00:05:36,240 Speaker 2: seeing out of the other properties that have been open. 121 00:05:36,720 --> 00:05:39,719 Speaker 1: So what about New Year's right around the corner and 122 00:05:39,880 --> 00:05:42,200 Speaker 1: a lot of people are looking forward to getting their 123 00:05:42,240 --> 00:05:44,240 Speaker 1: celebrations started. What do you have in store? 124 00:05:45,560 --> 00:05:47,000 Speaker 3: We have post Malone playing here. 125 00:05:47,080 --> 00:05:49,880 Speaker 2: We obviously have a bunch of different events going on 126 00:05:49,960 --> 00:05:53,120 Speaker 2: through the property. And we're new this year, so obviously 127 00:05:53,160 --> 00:05:55,520 Speaker 2: you know we're ramping every day and you know, the 128 00:05:55,560 --> 00:05:57,440 Speaker 2: reception has been great and our numbers are better and 129 00:05:57,480 --> 00:05:58,080 Speaker 2: better every day. 130 00:05:58,160 --> 00:06:00,240 Speaker 3: So we're very excited about the. 131 00:06:01,839 --> 00:06:04,280 Speaker 2: Process of the progress for being made up since we've 132 00:06:04,279 --> 00:06:06,200 Speaker 2: opened on July thirteenth. 133 00:06:06,279 --> 00:06:08,800 Speaker 4: How important to the bottom line and to the backing 134 00:06:09,040 --> 00:06:12,680 Speaker 4: our partnerships, Jeffrey, you're in partnership with Live for example, 135 00:06:12,720 --> 00:06:14,120 Speaker 4: and several others too. 136 00:06:15,680 --> 00:06:18,240 Speaker 3: Well. Live is owned by Found Group. It's not. 137 00:06:18,800 --> 00:06:21,200 Speaker 2: Everyone gets confused that it's another brand, but it's actually 138 00:06:21,200 --> 00:06:23,520 Speaker 2: owned by us. We have an operator that operates it 139 00:06:24,360 --> 00:06:28,880 Speaker 2: and David Grutman Energy I'm sorry Root Hospitality and his 140 00:06:28,960 --> 00:06:31,640 Speaker 2: old companies Energy, but it's important. 141 00:06:31,680 --> 00:06:32,919 Speaker 3: All these elements are important. 142 00:06:33,160 --> 00:06:35,279 Speaker 2: The type of you know, the DJs that are playing 143 00:06:35,279 --> 00:06:38,880 Speaker 2: in the in the clubs, in the day clubs and nightclubs, 144 00:06:39,160 --> 00:06:41,240 Speaker 2: the type of restaurants you have here. It's all about 145 00:06:41,279 --> 00:06:43,920 Speaker 2: curating these customers that want to come here and enjoy themselves, 146 00:06:43,920 --> 00:06:45,880 Speaker 2: and you obviously want to keep them on property, and 147 00:06:46,600 --> 00:06:49,320 Speaker 2: the content you provide here is very important to doing that. 148 00:06:50,000 --> 00:06:52,359 Speaker 4: So, Jeffrey Epswell, I'm sure you have sort of a 149 00:06:52,440 --> 00:06:54,400 Speaker 4: spend per person that you would like to see or 150 00:06:54,440 --> 00:06:56,600 Speaker 4: a break even rate per person, and there may even 151 00:06:56,640 --> 00:06:58,839 Speaker 4: be different layers. Take us a little bit into the 152 00:06:58,920 --> 00:07:00,920 Speaker 4: sort of melts and bulle of how it works, if 153 00:07:00,960 --> 00:07:02,800 Speaker 4: you would, if you can share that with us. What 154 00:07:02,839 --> 00:07:03,760 Speaker 4: are you looking for from that? 155 00:07:03,960 --> 00:07:04,080 Speaker 3: Ever? 156 00:07:04,080 --> 00:07:04,320 Speaker 4: Reason? 157 00:07:04,400 --> 00:07:07,240 Speaker 3: Who walks up? I mean, obviously we have we have 158 00:07:07,800 --> 00:07:08,839 Speaker 3: you know, our first year plan. 159 00:07:08,960 --> 00:07:10,320 Speaker 2: We have you know, obviously we like to get to 160 00:07:10,320 --> 00:07:13,119 Speaker 2: a certain occupancy and then of course drive a certain 161 00:07:13,360 --> 00:07:15,560 Speaker 2: certain adr rate. And of course then we you know, 162 00:07:15,600 --> 00:07:18,720 Speaker 2: are gaming business, which we were taking slowly and we're 163 00:07:18,760 --> 00:07:22,840 Speaker 2: doing organically. We haven't really Yeah, we're digging through this 164 00:07:22,920 --> 00:07:24,640 Speaker 2: every day. And you know, when you open a big 165 00:07:24,680 --> 00:07:27,440 Speaker 2: property like this, there's so many moving pieces, it's so big, 166 00:07:27,880 --> 00:07:30,960 Speaker 2: you hire so many people that it's very difficult to 167 00:07:31,080 --> 00:07:32,920 Speaker 2: just do. You know, like when you have a restaurant, 168 00:07:32,960 --> 00:07:35,280 Speaker 2: you could have training for three weeks and then open 169 00:07:35,320 --> 00:07:37,600 Speaker 2: it and you could really you know, be very close. 170 00:07:37,760 --> 00:07:40,840 Speaker 2: And this is such a massive you know, building and 171 00:07:40,960 --> 00:07:42,320 Speaker 2: property that you have a lot of. 172 00:07:42,600 --> 00:07:45,360 Speaker 3: Every day you're making changes. So you know, our first year. 173 00:07:45,200 --> 00:07:48,320 Speaker 2: We took a very conservative approach and uh, you know, 174 00:07:48,440 --> 00:07:50,640 Speaker 2: and of course we're building on it. Obviously, we're focusing 175 00:07:50,680 --> 00:07:52,440 Speaker 2: on the customer and we believe, we know we have 176 00:07:52,480 --> 00:07:55,760 Speaker 2: a great product what we've built. But you know, to 177 00:07:55,760 --> 00:07:57,600 Speaker 2: to sit here and say that we're going to run 178 00:07:57,640 --> 00:08:00,360 Speaker 2: the same numbers at some of our competitors are right away, 179 00:08:00,400 --> 00:08:03,640 Speaker 2: it's not it's not realistic. The property will will do 180 00:08:03,720 --> 00:08:06,600 Speaker 2: that over time and we think will surpass you know, 181 00:08:06,600 --> 00:08:08,400 Speaker 2: will be at the top of the food chainer so. 182 00:08:10,600 --> 00:08:13,040 Speaker 4: Well, the very best of look, it looks absolutely beautiful 183 00:08:13,040 --> 00:08:14,840 Speaker 4: from where we were sitting in New York City and 184 00:08:14,920 --> 00:08:18,239 Speaker 4: our thanks to you. That's Jeffrey Sofer, chairman and CEO 185 00:08:18,440 --> 00:08:20,080 Speaker 4: of Fountain Blue Developments.