Nevada Governor Steve Sisolak attends a ceremony to mark the commencement of development on the long dormant Fontainebleau building at the north end of the Strip Tuesday, Nov. 9, 2021.
Published Tuesday, Nov. 9, 2021 | 11:30 a.m.
Updated Tuesday, Nov. 9, 2021 | 4:14 p.m.
The group behind the long-stalled Fontainebleau resort on the north Strip expects the project to be complete in late 2023.
The group, made up of the Fontainebleau Development company and the real estate wing of Koch Industries, made the announcement today during a ceremony at the site.
A 63-story casino resort is planned for the blue-glass building near the recently opened Resorts World Las Vegas and the Las Vegas Convention Center West Hall expansion.
Fontainebleau Development, a Florida-based company that owns and operates hospitality, commercial, retail and luxury properties, is targeting the fourth quarter of 2023 for the opening of the property at 2777 S. Las Vegas Boulevard.
It will open under the name Fontainebleau Las Vegas.
Renewed construction at the site started in August, said Jeffrey Soffer, chairman and CEO of Fontainebleau Development.
“We have been extremely selective when it comes to expanding our brand,” Soffer said. “Las Vegas has always been our No. 1 choice. The building is in mint condition, and this will only add to all of the great hotel options Las Vegas already has.”
Soffer said the Fontainebleau will be an upscale resort option, similar to what the Wynn Las Vegas and Encore offer.
Construction on the project — which was known as the Drew for a time — started in 2006. The project was about 70% complete when work was halted during the Great Recession.
Soffer was involved in the original group that planned to open the resort, though it later changed hands.
The involvement of the Koch Real Estate group — an arm of Koch Industries, which employs about 62,000 in the U.S. and is led by billionaire Charles Koch — seemed to signal a sense of confidence in the Las Vegas market.
“We’re bullish about Las Vegas,” said Jake Francis, president of Koch Real Estate. “It’s one of the most recognizable brands, iconic brands, for tourism and gaming. When the opportunity came, we knew we wanted to be in Las Vegas. We see continued growth here.”
The project at the 25-acre site is the latest to be announced along a stretch of the Strip seen as trailing other areas along the famed tourist corridor.
“The location is very different than it was 14 years ago,” Francis said. “We’re the beneficiary of Resorts World opening up and the convention center expansion and all the money that’s been invested in this area of town.”
Francis said Koch Real Estate was not scared off by the pandemic-induced downturn of tourism in Las Vegas.
“We have seen Las Vegas be resilient through its history,” Francis said. “Second, the great thing about having Koch Industries as a capital partner in this project is that we take a long-term point of view. We thought about what Las Vegas will look like not just two years from today but 10 years from today.”
Nevada Gov. Steve Sisolak referred to the announcement as the “rebirth” of the project.
“I know we’re going to move forward and we’re going to get this finished,” Sisolak said. “It’s going to be terrific.”
When construction is in full swing, close to 3,200 workers are expected to contribute at the site. Sisolak also pointed to the thousands of permanent employees who will eventually work at the resort.
“I know how important this is to our entire community,” Sisolak said. “I’m really looking forward to being here to help cut the ribbon when it opens.”
About 1,800 rooms inside the building had been completed, but they will be gutted and designed anew as part of the construction process, Soffer said.
Fontainebleau Las Vegas is expected to feature over 3,700 rooms.
“The market has changed, and those styles are now outdated,” Soffer said. “Our brand will play in the Wynn, Bellagio, Aria realm. That’s the type of finish we’ll have. We’re looking forward to finish what we started. I never thought this would sit this long because it’s always been a great building.”
