|ATLANTIC CITY, N.J - Nov. 13, 1998--At the "Jeffries Company
Inc. High-Yield Gaming Conference" held Thursday in Atlantic City, Bradley
H. Stone, an executive from The Venetian Resort-Hotel-Casino, provided
an update on the $1.2 billion Venice-themed mega-resort set to open April
1999 in Las Vegas.
Having secured approximately $1 billion in financing approximately one year ago (Nov. 14, 1997), Stone, executive vice president, participated in the high-yield conference sponsored by Jeffries Company by providing an overview and update on the resort project presently under construction on Las Vegas Boulevard.
Speaking to a gathering of investors, Stone shared information on The Venetian's current status on hotel room bookings, average daily rates and velocity of bookings.
"Thus far, our group sales efforts have resulted in hotel bookings of approximately 71 percent of our projected group booking goal for our first year," said Stone. Bookings are group reservations for in-house groups made with standard cancellations terms and room blocks set aside in connection with arrangements with tradeshow vendors, subject to standard cancellation terms without penalty.
"These bookings have been secured at our projected daily rate. What is encouraging about this high volume of rooms is that we have accomplished this without a formal retail consumer marketing campaign. It is a testament to the room product and the amenities provided at the property," Stone added. In addition, Stone provided an overview of present market conditions in Las Vegas and how The Venetian's original business plan reflects such changes.
"To date, The Venetian business plan has been reinforced by revenue increases in hotel and food and beverage revenue at Las Vegas' high-end properties during the first half of 1998," said Stone. "Conversely, the primary decreases have been seen in the area of baccarat, which is not a material part of our business strategy."
Upon completion, The Venetian will boast the world's largest hotel and convention complex which includes 3,036 hotel suites, the first all-suites hotel on Las Vegas Boulevard; 116,000 square feet of gaming floor; approximately 500,000 square feet of retail space at The Grand Canal Shops; approximately 500,000 square feet of meeting space at The Venetian Congress Center; and a direct link to the approximately 1.2-million-square-foot Sands Expo and Convention Center.
In addition, The Venetian will offer unmatched world-class dining and entertainment with owner/operated restaurants such as Joachim Splichal's "Pinot Las Vegas," The Cheesecake Factory's "Grand Lux Cafe," Emeril Lagasse's "Delmonico Steakhouse" and Il Fornaio's "Canaletto." The project will also premiere the first-ever stateside "Madame Tussaud's Museum" and the first "SpaClub" by Canyon Ranch, one of the world's most elite health resorts.
"In keeping with our strategy to redefine Las Vegas' culture, The Venetian is reaching beyond the simple `must see' approach to the `must see, stay, dine, shop and experience' by assembling the best hotel rooms, brand-name restaurants, exclusive retail, state-of-the-art gaming and convention space in one spot and under one roof," Stone added.
Certain matters discussed in this news release, as well as information
included in oral statements or written statements made by the company,
may constitute forward-looking statements within the meaning of the federal
securities laws. Actual results and the timing of certain events could
differ materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including general economic conditions,
acts of god, and competition for construction, hotel, casino, food and
beverage, and related labor and materials in the Las Vegas market. Reference
is hereby made to the "Risk Factors" set forth in the company's Form
||Venetian Resort Tops Out at 35th Floor - Recreation of Venice, Italy Takes Shape in Las Vegas / Sept 1998|
|Is the Venetian Trying to Push Your Convention into Buying Expensive Blocks of Rooms at its Las Vegas Hotel? / June 1998|