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October 1, 2014

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Megabucks DJs news: Billionaire spurned in L.V. backs Hakkasan at MGM Grand

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Tom Donoghue/DonoghuePhotography.com

Hakkasan is under construction at MGM Grand in Las Vegas.

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Nick McCabe, VP of Strategy for Angel Management Group, Scott Sibella, president and COO of MGM Grand, Neil Moffitt, CEO of Angel Management Group, and Eric Barth, director of operations for Hakkasan Las Vegas, sign the final construction beam at Hakkasan Las Vegas in MGM Grand on Tuesday, Oct. 9, 2012.

Hakkasan

Hakkasan Topping Off at MGM Grand

The construction team of the McCarthy Building Companies is shown at Hakkasan Las Vegas in MGM Grand on Tuesday, Oct. 9, 2012. Launch slideshow »

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DJ Tiesto at MGM Grand's Wet Republic on Sept. 3, 2011. Launch slideshow »

Rival nightclub owners are stunned with the megabucks war the new monster venue Hakkasan is waging at MGM Grand. The restaurant and nightclub is nearing completion of a $100 million-plus makeover of the ex-Studio 54 space into the world’s largest and most luxurious entertainment and dining experience.

Hakkasan was set to open for New Year’s but now is planned for early spring because of even more luxurious additions. It started the Las Vegas superstar DJ wars by signing four worldwide toppers, including DeadMau5 and Tiesto, to two-year deals in a $65-million-plus contract package.

Since our first mind-numbing report Thursday revealing the Deadmau5 deal, more incredible DJ signing news came to light, which we reported Sunday.

“I’m going to be completely candid,” one Las Vegas nightclub operator told me. “Several of the clubs have been talking among ourselves, and we can’t compete with their numbers. There’s no way any of us could make money and throw these sky-high contracts up to steal the DJs they’ve got.

“They’re cleaning up the entire market. They’e going to take all the top staff from every club in town. They will completely change nightlife business in Las Vegas. They’re going to put several clubs out of business; not just one, but several!

“But what’s more incredible is how can they make money themselves with these kind of costs. Where are all the people coming from to put butts in seats, as we say? Who is throwing this kind of giant money around today? Perhaps the bigger question is why it’s being thrown around?!”

Hakkasan was created by 50-year-old Hong Kong restaurateur Alan Yau, who moved to England when he was 12 and barely able to speak English. Today, he owns a chain of Thai restaurants, Chinese noodle bars and the ever-growing, Michelin-starred Hakkasan empire with venues in London, Mumbai, the Middle East, Miami, New York , San Francisco and soon in L.A.

The 75,000-square-feet, five-floor Las Vegas platinum playpen is so huge with its restaurant, lounge, nightclub and daypool components that it will require 500 staff members, with a seven-day job fair starting Jan. 14. The property boasts rich interiors and distinctive modern Chinoiserie for a luxurious contemporary environment.

It’s a venture with Angel Management Group, which operates Pure and Venus adult pool at Caesars Palace, Tabu Ultra Lounge and Wet Republic at MGM Grand, LAX and Savile Row at the Luxor, Coyote Ugly and Dick’s Last Resort at New York-New York and Social House in Crystals at CityCenter.

But now for the ultimate Wicked Whisper & Racy Rumor! Las Vegas nightlife insiders have begun asking about the fortune involved in the huge construction costs and giant star DJ paychecks -- “Where is it all coming from?” one highly reliable insider asked, and then he gave me the amazing answer, which has been confirmed by another knowledgeable source.

“The Hakkasan venture is bankrolled and backed by a mega-wealthy Middle East billionaire. He was a regular high roller at another luxurious Las Vegas nightspot but became disgruntled when he was turned down for a specific table that he wanted one night. He said he was disrespected; he said he’d open his own place to teach them a lesson.

“So he backed the project and told Angel Management that it didn’t matter how much it took to make the Hakkasan project in Las Vegas the best in the world. He said it was an unlimited budget. He wanted to ensure that his previous nightclub hangout knew they’d done the wrong thing by him.

“He’s going to ensure whatever it costs that they learn a lesson. He will have the best club in the world, and nobody will ever match it. He wants the world’s top, best DJs, and he’s got them in contracts to ensure nobody else can have them.

“All because they wouldn’t give him the table he wanted. Incredible! Only in Vegas! We are the Nightlife Capital of the World, and now he’ll have the biggest and best of the lot.”

Robin Leach has been a journalist for more than 50 years and has spent the past decade giving readers the inside scoop on Las Vegas, the world’s premier platinum playground.

Follow Robin Leach on Twitter at Twitter.com/Robin_Leach.

Follow Vegas DeLuxe on Twitter at Twitter.com/vegasdeluxe.

Follow VDLX Editor Don Chareunsy on Twitter at Twitter.com/VDLXEditorDon.

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  1. The DJ format is so old school. Belongs in the past. If a venue is DJ-based, I simply won't go.

  2. Wow! Money talks. With a 500 member staff I'd expect a slow exit of 1/3 of the staff 3 months after opening.

  3. "The DJ format is so old school. Belongs in the past. If a venue is DJ-based, I simply won't go."
    Old school?? huh? 'Star' DJs have been the huge draw at clubs worldwide for years now, not just no name DJs! There is a reason why those guys make 10s of millions a year, look it up.
    Youd rather go see Celine Dione??

  4. This is really a Story of Customer Service and the total lack of Professionalism by staff in many of the Las Vegas Top Hotels.

    Poor Training, Low Salaries and the Pompousness of employees would not be tolerated in any Four or Five Star Hotel anywhere in the World. Some of the best training examples are the Ritz-Carlton and The Disney Institute.

    DJ's seem to be bringing in a much younger and more monied crowd than found at many of the Old Stuffy Caesars and Locals Properties.

    When DJs can sell 100,000 thousand tickets to the Electronic Daisy Carnival at hundreds of dollars a pop - Casinos had better listen.

    You can literally gamble about anywhere and have more fun than Gambling in Las Vegas and their poor Comps and Payouts.