Las Vegas Weekly

March 13, 2009 · 8:58 AM

In its first month, M Resort hits the “over”

By John Katsilometes

Anthony Marnell III mingles with invited guests Sunday night before doors are opened to the public at M Resort.

Photo: Richard Brian

In sports-betting parlance, which is my favorite Vegas parlance, M Chairman and Chief Executive Anthony Marnell III took the “under.” But the opening of M Resort came in “over,” and he paid out 250 big ones.

In essence, that’s how Marnell explained the misfire on his employment force in the days immediately preceding the opening of M on March 1. Marnell was this week’s guest on “Our Metropolis,” the Frost/Nixon-esque community affairs show I host each Tuesday on KUNV 91.5-FM. The prim, impressively suited Marnell explained why he quickly summoned 250 new employees to meet unexpected demand at the $700 million resort on the southwest corner of St. Rose Parkway and Las Vegas Boulevard South.

Many reasons is the reason.

“We had two restaurants (the Vig Deli, connected to sports book, and Red Cup Café) that were overrun with people. Usually you get a lull, but we had no time to even vacuum the carpet. We were literally vacuuming around customers’ feet. After the opening party, I went to bed at 6 a.m., and at 8 a.m. it was busier than the night before. Problems were already starting at that point,” Marnell said. “I had a lot of thoughts going through my head. I’ve watched the last two locals openings, not to name names, and there was a big drop-off the next day from what had happened that night. Why would ours be any different, even though I think a lot of people were anticipating another, let’s call it, Marnell property on the market. I tried to hire the right staff, and asked the team to work overtime that week, or the subsequent weeks that would follow. … I didn’t want to do any layoffs. In this environment, you have to have a conscience when you go to put up one of these properties. It’s not just about the developer and the property. You have to be conscious of all 1,800 people, and not to put on 2,100 people out of the gate, knowing that the last two or three openings had been dismal five days after the opening, and the layoffs came within hours of the doors opening. You’ve taken someone out of a job, you put them in this job, and they have an expectation that you’re going to watch out for them.”

Marnell took the low side. “So, I juggled that, and I missed a little bit, by 10 percent. I took the under, and, again, I was wrong.” Two significant areas of concern were the two restaurants Marnell referenced. Red Cup Café was hampered by understaffing and technical problems in its first few days, but both issues have been addressed, he said. The Vig Deli, which is an order-at-the-counter spot, was built to serve 300 to 400 people a day. In the first week, it was serving about 1,500 each day. “It was just not made to run that volume of people,” Marnell said. “We’re talking five times the value.” Overall, M was twice as busy as anticipated that first week. A total of 20,000 customers signed up for the iMagine rewards Club in the first few days of operation when the hotel set a goal for 25,000, total, for the entire month.

I also asked Marnell if he still contends that opening a $700 million resort in this economic climate is a good idea. His answer: Whether it’s a good idea is irrelevant.

“I wouldn’t say it’s a good idea, but I didn’t have a choice,” he said. “Once you start them, you can’t stop them. If you leave that asset half-built, you owe the bank that money, and you have no way to pay that money. You’ll be in default, and there are all kinds of issues that come with stopping something once you start it. So you have to finish the building. I don’t think it’s a bad idea. So far, so good.”

Marnell grew up in the gaming industry, as the son of Marnell Carrao Associates Inc. founder Anthony Marnell II (whose company built the Bellagio, New York-New York, The Mirage, Excalibur, Caesars Palace, Treasure Island and Caesars hotels in Atlantic City and Lake Tahoe). He and his father operated The Rio when it opened as a single tower in 1990, and, yes, it’s hard to believe The Rio has been around that long. The parcel on which M sits was actually one of Marnell’s favorite places to shoot firearms as a kid.

Decades later, Marnell says his aim is still pretty good.

“All in all, things have gone as well as can be expected,” he said. “I just need to keep my head down and keep out of the crossfire.”

Share This