Caesars Entertainment announced it will begin licensing four of its brands - Caesars Palace, Flamingo, The Cromwell, and The LINQ - to owners and developers who want to build hotels and resorts worldwide.
More and more traditional gaming companies are looking to diversify their portfolios. Prior to his departure, Steve Wynn had plans to open an entertainment park called Paradise Park, and MGM Resorts International has already expanded its investments into entertainment and sports-related businesses.
Caesars’ desire reflects the fact that its business is being driven by non-gaming sources, especially entertainment.
Dan Thaler, Vice President and Executive Associate of Hospitality at Caesars explained: “Every single year, the portion of revenue coming from non-gaming is outpacing gaming now, particularly when you look at the customer statements of where that’s coming from. Most people, historically, thought of Vegas as gaming and then everything else around it. Now, gaming is just one piece of the broader offering.”
Now competing with other well-established hotel companies such as Marriott, Hilton and AccorHotels, Robert J. Morse, President of Hospitality for Caesars Entertainment, believes that the increasing consolidation taking place in the hospitality industry is “a tremendous advantage” for Caesars.
Robert J. Morse said: “We really have something that is different than most hotel brands have, and that is the fact that we look at the business as being entertainment as much as it’s just providing a hotel location... it differentiates us from others.”
He added, “If you want something that’s different, that’s a little bit more differentiated in the marketplace and it’s not a typical Marriott, Hilton, or IHG, that’s what we do.”
Caesars Entertainment has a loyalty program of its own, called Total Rewards (55 million members) and last year it formed a loyalty partnership with Wyndham Rewards (56 million members).
Robert J. Morse said Caesars intends to retain this valuable loyalty partnership, and he believes the company’s distribution strength and brand recognition benefit both owners and developers.
Caesars operates 47 casinos and a total of 38,000 hotel rooms in five different countries. The company is positioning Caesars Palace as “indulgent and fun luxury,” Flamingo as a “vibrant Vegas-style resort,” The Cromwell as a “luxury lifestyle boutique — the place to ‘see and be seen’,” and The LINQ as “social, sensory, and modern.”
Two Caesars-branded resorts and a beach club in Dubai are expected to open by the fourth quarter, and the company also signed a deal with Grupo Questro to open a Caesars Palace in Mexico.
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