SLS Las Vegas Exits Marriott System On August 17, 2018

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W Las Vegas became part of SLS Las Vegas in July (read more here) and now the SLS itself (part of Tribute Portfolio) is exiting Marriott/SPG portfolio effective August 17, 2018.

SLS Las Vegas Marriott Exit U

Marriott Rewards & SPG members won’t earn points and elite qualifying nights or are eligible for benefits beyond this date either.

You can access SPG’s page for SLS Las Vegas here.

Seems that this exit doesn’t have anything to do with the fact that Accor is in the process of purchasing stake in SBE that owns SLS brand among others (read more here).

According to Casino.org the property has struggled for years and changed ownership this spring. The property name may change to Grand Sahara based on the recent filings.

UPDATE: Here’s statement that we received from Marriott spokesperson:

Marriott International and The Meruelo Group have mutually agreed to end their franchise and managed agreements with W Las Vegas and SLS Las Vegas, a Tribute Portfolio Resort. Beginning on August 17th, 2018, these hotels will no longer be part of the W Hotels Worldwide or Tribute Portfolio brands and the management of both hotels will be transferred to the owning company.

The parties are working closely together to ensure a smooth and seamless transition for associates, clients and partners. The new operator will honor all future reservations, including any Starwood Preferred Guest® and Marriott Rewards redemption stays currently booked and contracted meetings and events.

Here’s an excerpt from Casino.org from last year what went wrong (access there piece here):

When the SLS, standing for the home-shopping-network-sounding moniker of “Style, Luxury, Service,” opened its doors in August 2014, it heralded what appeared to be the comeback of a post-recession Las Vegas Strip. But just a year after opening under the auspices of partners Stockbridge Capital and SBE Entertainment, the new casino hotel had failed to turn a profit.

After failing a Gaming Control Board-ordered drug test and admitting to giving purported extortion money in the millions to an ex-con who claimed to have been his former business partner, Nazarian was forced to step out of his key role at SLS.

But that was just the beginning. Food and beverage, typically a moneymaker, cost the casino $5 million in losses that year. It became evident that no matter how hip Nazarian had tried to make the place, it couldn’t overcome that classic real estate issue: location, location, location.

And here’s the name update from last month (access here):

According to blog Eater Las Vegas, SLS owner Alex Meruelo’s real estate development company has filed renovation paperwork with the city that refers to the resort as the Grand Sahara. But nothing is apparently set in stone.

When reached by the Las Vegas Review-Journal, Meruelo Group rep Christopher Abraham explained, “We have not determined the name of the new property. It was a working name at the time that the plans were written up several months ago.”

Conclusion

Seems that this exit has nothing to do with the Marriott/SPG program merger happening later this week that some developers/owners may use as an excuse to get out of their contracts.

SLS Las Vegas has apparently lost lots of money over the years and the new owner is making much needed changes trying to turn the business around. Only time will tell.

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