The unfinished Fontainebleau is being revived. Fontainebleau Development plans to open the halted casino resort on the north end of the Vegas Strip near Sahara and Circus Circus in the fourth quarter of 2023.
Nonetheless, this is not Fontainebleau’s first attempt. The large blue structure initially started construction in 2007. However, in 2009, the construction came to a halt as the initial developers ran out of funds.
Numerous owners have possessed Fontainebleau but accomplished little in advancing the project. Hopefully, this instance will deviate from the norm.
Fontainebleau Development plans 2023 opening
Koch Real Estate Investments acquired the incomplete casino resort formerly known as Fontainebleau Las Vegas earlier this year.
The property occupies a vast expanse of 25 acres. Construction on Fontainebleau, which has been paused for over ten years, is currently 75% complete. Although it was approximately 90% complete when the construction first came to a halt, it’s been 12 years since the project was discontinued.
Although the structure might be in good condition, the new developers will need to replace everything, from the furniture to the Plaza and auction house items.
The land is owned by Koch, but the property will be managed by Fontainebleau Development. This appears to be a revival of the initial plans for the property. In the following months, the company will reveal further partners for design and development.
Should the project be completed around this time, it would mark a return to its Fontainebleau vision.
Brett Mufson, President of Fontainebleau Development, believes that now is the appropriate time to complete the project that has been on hold for several years. He expressed this in a media statement, saying:
“The Las Vegas tourism sector has demonstrated remarkable resilience in the past two years. We think that our intended opening date provides us the chance to refine our vision, while setting up Fontainebleau Las Vegas for success in a period of growth and increased visitation.”
More details are yet to be revealed about Fontainebleau’s revival. The plans indicate that it will exclusively be a casino and hotel. Initially, there were plans to sell some condominium units, but those have been shelved for now (more details to follow soon).
The Drew years
Koch bought Fontainebleau from Witkoff, a different real estate firm that was aiming to complete the property by 2018. Subsequently, the property was renamed The Drew and later Drew Las Vegas.
Witkoff enlisted the services of a design and architecture firm to initiate the project. Further, the company appointed Bobby Baldwin, a seasoned professional from the gaming industry, as the CEO of Drew Las Vegas. Subsequently, Marriott was employed to manage the hotel at The Drew.
Regrettably, the plans never truly materialized, and the progress of The Drew came to a halt. Marriott has withdrawn from the property’s development. The land was acquired by Koch, and now Fontainebleau has taken over the completion of the project.
Carl Icahn makes a smart investment
In 2017, Witkoff bought Fontainebleau from billionaire investor Carl Icahn for $600 million. Previously, in 2010, Icahn Enterprises had acquired Fontainebleau for $148 million.
Icahn appeared to have no plan to complete the construction of Fontainebleau. However, he managed to make a minimum of $457 million from this troubled real estate asset.
Hence, for seven years of doing minimal work, the return on investment is not bad at all.
Original Fontainebleau plans
The initial plan of Fontainebleau was to construct on the sites where El Rancho and Algiers casinos formerly stood.
The upscale casino, resort, and condominium project still occupies a comparatively small 25-acre plot of land. For perspective, The Mirage, which is currently on the market, spans around 100 acres.
According to Vegas Today and Tomorrow, the initial plans for the Fontainebleau Las Vegas were ambitious and included the following aspects:
- A casino that’s 100,000 square feet.
- Lapis is a spa that spans 60,000 square feet.
- A performing arts theater with 3,200 seats
- 1,018 condominium-hotel units
- 300,000 square feet of retail space
- 390,000 square feet of indoor and outdoor conference area
- Cutting-edge nightclubs
- 27 dining establishments and lounges
Information about what the new Fontainebleau will provide upon its opening in 2023 will be disclosed in the coming years. In addition to hotel facilities, the new management will need to announce the gaming companies that will operate the casino and sportsbook.
At the very least, this should continue to be a luxury property, akin to what the company provides to its guests in Miami Beach.
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