SLS Las Vegas Hotel & Casino (SLS) is a four-star hotel and resort with 1,600 guest rooms, a casino, four nightclubs and various restaurants and retail shops. The property comprises of 17.5 acres of land, including three hotel towers, a main podium building, a 65,000 square-foot casino, 12 restaurants and bars, showrooms, gift shops, and a 39,000 square-foot pool deck. Its casino houses 860 slots and 112 table games, generating over $150 million in annual revenue from gaming players. The SLS has an occupancy rate of 92-percent, serving over 500,000 in-house guests each year. From all business segments, SLS generates $200 million in annual revenue.
Winter Harbor was engaged by the investment company to SLS as chief restructuring officer to develop a comprehensive business assessment to present to potential investors in the redevelopment of the SLS brand, including the property, facilities, and staff. We worked with SLS executives to implement capital received from creditors and execute our developed business strategy. Our strategy covered all business segments of SLS: hotel accommodations, casino facilities, entertainment and nightlife, restaurants, shops and spa.
Scope of Work
Created restaurant schedule to eliminate unprofitable evenings.
Flexed staff with “closed nights”.
Measured nightly profitability and created a scheduled of open nights and closed nights across multiple restaurants to maximize profitability.
Evaluated housekeeping staffing levels and reduced headcount.
Reduced headcount across casino and hotel areas and other overhead departments.
Oversaw major relaunch of brand and marketing initiatives.
Ensured budget spend with financial department.
Developed analyses to measure profitability with specific entertainment/artist evenings.
Eliminated excess casino headcount when managing casino gaming activity.
Analyzed table profitability with different minimums.
Managed all treasury activities.
Monitored daily cash flows.
Developed terms with vendors to improve liquidity and operational expenses.
Provided utilization recommendations on 43,000-sq. feet of unused space on property.
Our assessment was presented to a potential investor looking to leverage available capital. We developed specific business strategies targeted to improve guest experience and increase client loyalty. We partnered with SLS executives to apply the capital received towards executing our business strategy and substantially increasing occupancy in all business segments at SLS. Moreover, annual operating losses were reduced from $89 million to $27 million.