The Nevada Gaming Commission Thursday enthusiastically backed a new gaming operator at the financially troubled Virgin Hotels Las Vegas amid the ongoing strike from union workers.
Current hotel president Cliff Atkinson and chief financial officer Chad Konrad have partnered to take over the casino from the Mohegan Sun. Atkinson will be CEO, Konrad the CFO of the new entity, C&C 4455 LLC.
The casino management change is expected to be completed by the end of March.
The hotel is owned by British-based Virgin Group, along with an investment management firm and Canadian pension fund. JC Hospitality is the operating company for the landlord.
Atkinson, a former MGM Resorts executive, told the Commission that nearly $400 million was put into renovating before reopening “in one of the most difficult times in Nevada’s history.” Virgin has struggled since then.”
The reason for the change is that the deal between the ownership and Mohegan Sun “simply didn’t work,” Atkinson said. In March, the tribe provided notice of termination, prompting the partnership between the two hotel executives.
“The lease structure would remain,” Atkinson said. “Our current ownership has been operating under it since 2018 under Brookfield and Warner Gaming and today under Mohegan Sun.”
Atkinson said they have many plans to maintain jobs and grow the business, including rolling out a new loyalty program, a sports-betting operation, and “bringing life back to the property through entertainment and food and beverage areas. The casino is one piece in the overall property turnaround.”
Atkinson said the property was refinanced earlier this year, “key to getting to this point in time.” It also moved from a Hilton-managed property to a Hilton franchise agreement.
“Today is one the last pieces to put in place to keep the property moving forward.”
Commissioner George Markantonis called what they’re doing an “extremely well-thought-out plan. It’s good to see you’re not feeling hampered by the distance (of one mile) from the Strip, which I think has been a challenge for the property for the last 20 to 30 years.”
Commissioner Brian Krolicki called it a great story, but a difficult one. He commended management for trying to save the jobs and “make a special property a success.” He said the marketing approach, keying in its proximity Harry Reid International Airport, will help.
Konrad agreed. “We don’t have the foot traffic that walks by the building like the Strip does, but we do have the airport, the Convention Center, and Sphere on our side of the Strip. We’ll have a baseball stadium on our side of the Strip as well, hopefully soon.”
Commissioner Abbi Silver wanted to know what was happening with entertainment.
Atkinson cited AEG as a partner in the theater. Other venues are being programmed to bring in more acts, including two residencies in the past year and live music with no cover. “It’s about bars and entertainment and reasons to come to the property,” Atkinson said. “It’s a big part of our turnaround strategy.”
Konrad has worked at the property for 25 years in every finance capacity, including six years as CFO. He worked said his experience there will help in the future plans. “This transition is a challenging one. We have our work cut out for us, but there’s opportunity too. Cliff and I decided to step up and enter into this because we have a similar passion for the property. We believe in what the property can do and our abilities to move this casino forward.”
Renovations planned for the property will be a surprise to people when they’re unveiled, Konrad said.
Silver said it’s important to cater to local residents, like the property has done in the past. Locals are a big part of the strategy as the Strip evolves, Atkinson responded, adding they offer free parking and other things that matter.
Krolicki ended the hearing by saying that Atkinson and Konrad “have the experience and passion to make it happen.”
