Fontainebleau Buys Riviera Land for Possible Expansion

The Fontainebleau now owns adjacent land that could be used for a second tower. (Image: David Becker/ZUMA Press)

The Las Vegas Convention And Visitors Authority (LVCVA) on Tuesday approved the sale of five acres of land to the developers of Fontainebleau for $112.5 million. The deal for the parcel just south of the enormous blue casino resort should close before the end of the year, and until then invites wild speculation on how it could fit in the vision for the luxe resort on a not-so-glamorous stretch of the Strip.

Plans for Old Riviera Site Still TBA

After sitting dormant for over a decade, Fontainebleau finally opened its doors six months ago. Specifics about how Fontainebleau will use the land won’t be officially announced until after the sale closes. “This acquisition, which is strategically located for future growth, underscores our confidence in the Las Vegas market," CEO John Soffer said in a press statement. "We look forward to disclosing more details in the near future.”

One rumor being shared is that Fontainebleau could use the land to build a private high-roller hotel tower. Fontainebleau should have more information after the deal closes later this year.

The five acres Fontainebleau is purchasing was once occupied by the Riviera. In 2015, the LVCVA announced that it purchased the 26 acres of land where the casino once operated as part of plans to expand the Las Vegas Convention Center to the Vegas Strip.

The Riviera was imploded in 2016. This was almost exactly eight years before the LVCVA approved the sale of this plot of land to Fontainebleau.

Expansion of the Las Vegas Convention Center didn’t reach the Vegas Strip so the LVCVA had extra land that it could sell. In 2021 the LVCVA agreed to sell 10 acres of land to a Chilean developer but the deal never closed.

Last year developers 65SLVB agreed to purchase the same 10 acres of land for $125 million. The developers still have the rights to purchase half of the land in the original deal.

The developers, 65LVB, most recently opened the retail plaza 63 Las Vegas across from the Cosmopolitan and between Crystals Mall next to Aria.

Fontainebleau Feeling Good

Fontainebleau Las Vegas finally opened its doors to the public on Dec. 13, 2023. The Grand Opening was a star-studded event attended by Cher, Kim Kardashian, Tom Brady, Las Vegas Raiders owner Mark Davis and many more. Justin Timberlake took the stage to entertain the opening crowd. This opening was 16 years in the making and, understandably, the company would have such a lavish opening celebration.

Construction on Fontainebleau Las Vegas started in 2016. The developers ran out of money after completing about 75% of the construction in 2017. After changing hands numerous times, Fontainebleau Development re-purchased the property and finished construction.

Fontainebleau Development is a private company and is not required to report earnings. Soffer insinuates that the newest casino on the Vegas Strip is off to a good start:

“Almost six months into operations, we are already seeing positive and encouraging results for Fontainebleau Las Vegas,” Soffer said.

I spent two nights at Fontainebleau shortly after opening. The experience was a mixed bag but the experience was overall positive.

Return visits to Fontainebleau for dinner and drinks showed busy bars and restaurants. However, the property has been shuffling executives seemingly every few weeks.

Five executives were sacked less than a month after opening. The company already has a new president and recently promoted three executives.

It takes time for Las Vegas casinos to find their footing. For comparison, it took The Cosmopolitan more than five years before it turned a profit.

Like most casinos, Fontainebleau is looking to add customers. As such, they recently extended the “Elevate Your Tier” promotion into September. Fontainebleau Rewards will match tiers for guests who have higher status with other casino loyalty programs.