Two Way Hard Three | Las Vegas Casino & Design Blog

December 23, 2007

BREAKING: Palazzo Will Not Have Guests in December

Posted by Hunter

It turns out that due to 'construction delays' there will be no hotel guests at Palazzo in 2007. I have confirmed with hotel staff that guests are being moved to The Venetian if they so desire.

Still working on final word if even the casino will be open this coming week - it's looking doubtful.

Thanks to Brian for the heads up on this.


Read archived comments (28 so far)
December 23, 2007 11:06 AM Posted by Nathan Boone

This is the biggest shock!!! I can't believe that there would be any delays at all!!! I met a girl in October that was applying for front desk position with me. I'll have to ask her and she if she even knows when she'll start working! Also, it says on the website that the 40/40 club will have a new year opeing...we'll have to see about that. It also looks like Palazzo will be copying and pasting a lot - a second burberry, some other shops, and another grand luxe cafe. I guess it's a good thing, if you don't want to wait at one, you can go to the other!

December 23, 2007 12:07 PM Posted by BrianFey

This was just as I predicted. LVS just can't open properties. I don't care what anyone says, Wynn Resorts is the single best management company in Vegas when it comes to opening hotels on time, and fully complete. Wynn may not rush, and may not build hotels in a year, but he opens then when they are done and ready, not like this poorly ran company. I think this is just one example of how LVS runs their company. They position themselves for today, rather than tomorrow. Its just like selling all their retail space, yes it puts some money in the bank today, but Wynn can own that retail space, and collect rent forever. You have two types of people, sprinters, and long distance runners. Clearly LVS is a sprinter, and Wynn Resorts is a long distant runner.

December 23, 2007 3:05 PM Posted by Jeff in OKC

I was at a Christmas party 2 weeks ago, and a friend of mine said he was staying at the Venetian for new years. Based on what's been posted here over time, I told him to be sure his reservations were guaranteed, since I didn't think Palazzo was going to be open and they may bump guests from the Venetian to accomodate them. He was shocked, but he follows my advice on Las Vegas.
Thanks, everyone, for making me look like an insider. And for helping all of us to know what's really going on.

December 23, 2007 7:55 PM Posted by mike_ch

Well this was honestly expected, and it's probably the better move for them to just keep the doors closed rather than run the risk of the whole resort looking unprepared. Look at how much mud got slung at Wynn Las Vegas for La Bete and poor direction on Le Reve, and that was really all that missing. In hindsight, one wonders why they spent so much time building a Ferarri dealership instead of the nightclub since that's where everyone's reaping profit from right now, but that's for another time.

LVS doesn't really seem to mind being torn up in the press for doing these sorts of things their way. I guess they don't think they're screwing anyone by offering people opening night in the Palazzo and then six weeks later asking them if they'd settle for a regular night at the Venetian instead, but the thing is that one person who feels cheated, he's going to go to Bellagio next time, or Wynn, or Caesars, or Four Seasons.

They pulled it off with Venetian because I don't think anyone honestly knew what to expect, there really wasn't any bar set for what they were doing, and they also had the convention center. And they did it again on Cotai with everything riding on "who cares, we have these conventions so we know people are going to come." And with this one, it was a disingenuous cash grab to get some extra NYE revelers because they know that in two years time nobody will really remember that Palazzo opened as a debacle anyway.

It's a strategy that I think will work for now, but every other company on the street is cooking the same recipe, which is a large luxury resort with room rates in the multi hundreds of dollars and big-name chefs and shopping. And when they also have CityCenter, and Echelon, and the Plaza, and Fanta-blow or whatever it's called all nipping on their heels at once, they aren't going to be able to do this.

Sheldy's got one last big trick up his sleeve for the Boulevard and that's to pay off Casino Royale to get out of the way for his third Strip property. And when that one opens, it can't be the mess that Venetian was or that Palazzo has and will be, because there'll be too much weight at the top and he's going to get bombed out. People will say "Remember when CityCenter opened? That place was three times the size of this property, and it was handled much better." Or they'll say that so long as CityCenter doesn't fly off the rails come opening, and I don't think it will.

December 24, 2007 2:30 AM Posted by Joey from Boston


I have my ressies for mid February at Palazzo, hoping shit gets done by then.

December 24, 2007 1:19 PM Posted by Dorian

It's Christmas Eve and I'm staying at the Venetian. This is my fourth time staying at the Venetian and I have never seen it as packed as it is now. It is obvious that The Palazzo reservations have been moved over, myself included. There are hour and a half waits for room service and bellman. People are wall to wall shoulder to shoulder in the casino and public areas. An IT tech that was sent to my suite said the Palazzo is a month away at best from any type of opening.

December 25, 2007 11:22 PM Posted by Chris from Dallas

I stayed at Venetian when it did it's opening. Nothing was ready. It was a madhouse downstairs. I still remember my wife having to stuff a washcloth in the drain of the tub to take a bath. Also, some time during the night, a picture fell off the wall in our room! Quite a shocking way to wake up!

Sounds like Palazzo (or MEGACENTER all caps trade mark symbol) is fairing no better.

December 26, 2007 3:55 AM Posted by Joey from Boston

It seems so strange to me for them to put out that latest promotion of $199 a night rates at Palazzo if they knew it wouldn't be ready in time.

After listening to TheStrip podcast with Steve Wynn describing how much effort Wynn puts into getting things right for an opening, I can't help but wonder if he knew that Sands was going to blunder their opening of Palazzo and wanted to highlight how superior his opening experiences are in relation.

December 26, 2007 4:39 AM Posted by andrew

Hotels always have issues opening on time.

I am not surprised by this, especially when you consider the number of other projects going on - City Center, Cosmo, Echelon, trump, Fountainbleu, Encore...There are only so many contractor to go around.

The issue with Palazzo - is that the opening was always planned for december - stating that it will be a progressive opening - with pool, show and shops in spring....WHY ????

Anyhow LVS did giv ea great return on stock value...from $35.00 back in Feb 2005 to over $100 now.

December 26, 2007 7:56 PM Posted by detroit1051

"The Palazzo Las Vegas Soft-Opening Kind Of On Hold
Several folks emailed us over the holiday weekend to give us the heads-up that the Palazzo Las Vegas missed its soft-opening date of Dec. 20th and instead will be opening on January 5th.
We gave the folks at the Palazzo a call this morning and discovered that rooms are open under a soft-opening this Friday, Dec. 28th but the hotel is not taking any new reservations until Sunday, Jan. 6th. Then the grand opening weekend for the Palazzo is January 18th and 19th when everything else, including the mega retail complex The Shoppes at the Palazzo should open as well.
For now, everything on the Palazzo reservations page is listed as sold out until Jan. 6th where we found a Palazzo Bella suite for $369. On the second night, a Monday, the rate jumps to $439. So much for those hotel opening rates."

December 26, 2007 7:59 PM Posted by Hunter


That's in contrast to what I was told and what I have heard from people that were booked for Friday night - that the rooms will not have any occupants this weekend at all.

I'll be there tomorrow - I'd love to see the place if it is indeed open.

December 26, 2007 9:49 PM Posted by Mike T

For those of us who were here for the disastrous opening of the Venetian, this comes as no surprise at all. At least they don't have a Blockbuster convention booked this

December 27, 2007 4:12 AM Posted by Joey from Boston

When I booked my stay Mid February I was assured that everything would be open by then by the reservation taker.

Not that I believe that at this point, but just interesting that they would relay that information.

December 27, 2007 1:30 PM Posted by dstanley

It is really remarkable that no one knows for sure if the Palazzo will be open tomorrow. The lack of buzz about the Palazzo is amazing. I think Sands Corp. has made a mistake by sometimes marketing the Palazzo as a new tower at the Venetian. People are not going to get too excited over a new tower. They need to focus their efforts on getting over the fact that it is a new and exciting destination resort and not just an additional tower.

December 27, 2007 5:15 PM Posted by mike_ch

Now it's January 17th:

December 27, 2007 11:24 PM Posted by Bill Bacon

Palazzo recived there TCO yesterday for the phases they planned to open. Word in the construction world is that they are opening on the 30th. Nobody seems to know for sure. Most the exterior venues apart from the casino including entertainment and restaurants won't be done for another couple of weeks.

December 28, 2007 5:14 AM Posted by detroit1051

LVS demonstrated with the botched opening of Venetian that public irritation or disappointment is short-lived. Other than the relatively few guests inconvenienced when Venetian first opened, how many people today even remember that it happened? I don't like it, but Adelson is doing a lot of things right to fill up Venetian and soon, Palazzo, with conventioneers and tourists/gamblers.
I often wonder, tongue-in-cheek, who controls the media in Las Vegas. They haven't been on this story as much and as early as they should have been, in my opinion. Here's the Review Journal story this morning:
The WSJ has a similar story:

December 28, 2007 6:37 AM Posted by Hunter

Also briefly mentioned in this story on nightclubs:

December 28, 2007 7:22 PM Posted by Hunter

Just a reminder that I am updating photos here on the site and also on Twitter, linked from the sidebar.

December 30, 2007 9:31 AM Posted by GG in LV

I work in a restaurant in the Venetian and got a mini tour two days ago with the person who is in charge of the shoppes at Palazzo! The space is amazing! Lots of water and natural light! Rich royal colors in the casino. He wishes he had another month extra to work on the mall part! After talking to mulitple sources they are trying to open tonight ( Sunday ) at 7 pm! It looks like it will happen. They say 20 percent will open, including the casino, 2nd Grand Lux location (stupid idea) and walkways. 40/40 club will open new years eve.


December 30, 2007 8:55 PM Posted by Mark D

It's open now. I walked through about an hour ago. Well, just the casino is open. I entered from the Venetian passage. There's a big dome there and a water fall and the ceiling rises several floors above what will be shopping in January. Then it opens to the casino and there are big artificial skylights over the widest aisles. Stylistically, there's nothing really wildly over the top or unique, but it feels elegantly comfortable, though the yellow carpet made me a little nauseous after awhile. Out by the front desk is another large dome with a large acrylic Lalique style sculpture of nymphs the base of which drops through an opening in the floor down to the next level. Numerous nice fronts to closed restaurants. There was a bar open that had zebra patterns on the pillars. Maybe the cafe was open, forgot to check that.

December 31, 2007 2:56 AM Posted by GG in LV

So after taking a closer look at the Palazzo tonight I have to say that I have mixed feelings! My main problems with the resort are in the details. The giant atrium that connects the two hotels is large and grand but the fake flowers and the even more fake looking ivy up the foutain, have to go!! The water nyphs in the main lobby look like something out of miami vice and the 80's. The zebra bar stands out like a sore thumb with the mustard and periwinkle carpet! Having 40/40 club has already attracted a crowd that might make the palazzo higher-ups think about make the resort have a dress code. Overall it is a good resort with nice surroundings but misses the mark with the details! Imagine Bellagio meets Forum shops with Sunset Station cheapness!

Just one persons thoughts! Anyone else?

December 31, 2007 6:51 AM Posted by cgriff

Hey there, I wonder why there has been no response to this thread yet from that "Leonard" fellow, who likes to post run-on sentences flaming Wynn and defending Addelson/LVS as the greatest casino magnate in LV history? Not that I liked reading that guy's tripe...


January 3, 2008 12:16 AM Posted by Mr. Casino

I guess sheldon adelson didn't read the book designing casinos to dominate the competition. He opened it early so he can make more money and become more richer than he is now. But a soft opening is good for the company because they can see what mistakes their are to fix so they can get those done for the grand opening in january. I am glad i am on this blog and i will be posting a lot more, and everyones opinions here are awesome and they have a lot of meaning.

January 3, 2008 9:53 AM Posted by Brian Fey

I am not sure how you consider this a good business decision. If i visit a casino, and nothing else is open, I will not enjoy it. Its the entire package. You say its not a lack of class, but it just shows you the greed of LVS. Lets not give the customer a first class finished project. Lets just give them a half assed property, and we'll open what we have today, then open more tomorrow, and then some more the next day. You have a casino, and a few places to eat thats it. That's a good business decision?

January 3, 2008 10:41 AM Posted by detroit1051

Brian, I agree that as a guest, I prefer Wynn, but as an investor, Adelson is more objective and less emotionally involved than Wynn. His obligation is to shareholders, and by opening properties as he does, it's to the shareholders' benefit. As you and I both said the other day, six months from now, no one except us casino nerds will remember the opening.

January 3, 2008 9:22 PM Posted by Mike T

Steve Wynn runs his hotel staffs through the paces before opening the doors too by having the staff spend nights at the hotel, and act as guests. This lasts 2-3 days, and by the time the completed product opens to the public, the hotel and the staff are ready to go. How can anyone think that what LVS does is better?

January 3, 2008 9:28 PM Posted by Hunter

I think it depends on what 'better' means - better for who? Employees? Customers? Bottom line?