After dipping its toes into the nongaming space in Dubai, Caesars Entertainment is going all in on the concept of hotel sans casino. Late last month, the company announced it would license its first nongaming brand, Caesars Republic. Billed as a lifestyle concept that "pays homage to the dynamic energy of Las Vegas," the flag's inaugural property is set to open in Scottsdale, Ariz., and will mark Caesars' first nongaming hotel in the U.S. The 11-story building, which is being developed by HCW Development and will be managed by Aimbridge Hospitality, is expected to house 266 rooms, a rooftop pool and bar, event space and a patio overlooking Camelback Mountain, among other features. Hotels editor Christina Jelski recently sat down with Marco Roca, president of global development and chief development officer for Caesars Entertainment, to talk about Caesars Republic and how the company is keeping up with shifting trends within the casino hotel sector.
Q: What's behind the company's decision to launch a brand like Caesars Republic and expand in the nongaming space?
Marco Roca
A: This has really been driven by our frequent guests asking for a product like this, where they can enjoy entertainment and celebrity chef experiences in a place that does not include gaming. Not everyone loves smoke-filled casinos and loud machines and people screaming with joy that they won big hands. Millennials have also expressed to us that they want curated, more localized venues. They still want to enjoy entertainment, but that entertainment might mean live shows featuring a DJ, comic, magician or band. We have a really good idea of what people want and what they consider fun and entertaining, and we will continue to encourage adults to play even when play doesn't include gaming.
Q: With millennial interest in traditional gaming appearing to cool somewhat, how have you had to adapt your flagship casino hotel business?
A: While our business mix may have shifted from 60% gaming to 40% gaming over the past decade, it's still a very important component. As a company, we continue to focus on trying to find out how millennials like to play. And we've found that they like to play in ways that are a lot more active. Sitting down in front of a slot machine and pulling the lever or pressing the button is not what they consider fun. They enjoy things that are more skills-based, and they're also interested in sports betting, which is more active because you can watch a game with friends and follow a team. At our Linq Hotel & Casino, which is our millennial property in Las Vegas, for instance, we've introduced a new sportsbook experience called the Fan Cave. You can have a food and beverage minimum at a table, play Xbox with your friends or select games to watch on a number of screens. And you don't even necessarily have to bet. It's very interactive and sharable and also creates these selfie moments that people like to post.
Q: What's the Caesars strategy for expansion?
A: It may take us a decade or longer to get 50 properties because we try to keep each one very special. It's really important that our Caesars Palace name remain at that level of a five-star, beautiful offering with celebrity restaurants and upscale rooms, and we're very careful about who our partners are. With Caesars Republic, we have more than 20 letters of intent out, and a lot of them are getting close to being signed. And that concept will be going global.
We're open to expanding all our brands in both gaming and nongaming formats, though so far Dubai is the only place where we currently have a nongaming asset. Overall, we are still keenly focused on continuing to grow our casino business. That will always be our core competency. But the hotel piece is also important, so we can offer guests places to stay outside of Las Vegas where they can still have the fun and earn the points that they've earned in Vegas and other places.