While operators in Downtown Las Vegas are not immune to the current economic troubles, overall they are doing a good job of controlling the bleeding. Whether it is the money being invested in the properties, the competitive price points or the value-driven business model, the Downtown area is doing better than most other gaming areas in the state. In November, when statewide revenue was down almost 15 percent and revenues on the Strip were down 16 percent, the Downtown area saw only a modest 1.6 percent drop.

And while Harrah’s Entertainment announced it would delay the introduction of new rooms at Caesars Palace because of softening demand, the El Cortez is getting ready to bring new rooms online in the El Cortez Cabana Suites. The new suites are part of an ongoing renovation project that is bringing new life to Jackie Gaughan’s historic property.

Mike Nolan, general manager and COO of El Cortez recently spoke with Casino Connection Publisher Roger Gros and Managing Editor Greg Jones about what is happening at the property.

Casino Connection: How did you get your start working for Jackie Gaughan?

Nolan: I started working with Jackie Gaughan in 1978. I was working on the Strip operating hotels and I turned 21 and went to work for Jackie and moved around through many of his casinos. In March of ’04 we sold five of our casinos and we kept the El Cortez. This is where Jackie lives.

We kept this property and started on renovations. We had been working on things with the other properties and the Cortez probably got a little neglected. So our focus was here.

We started on several projects. Our initial and second phases of everything we wanted to do was completed, and we’re in the process of completing a third phase. We have several more things we want to do, and as the economy shifts, we’ll be able to start with those projects. But there is a lot we have been able to do in the last four years.

Do you think the independent owners Downtown help the area more than the big operators?

We’re used to that kind of competition.

I think everybody down here is very committed to Downtown. The mayor has done a wonderful job, not only in the casino district, throughout downtown.

Right now it has been a little bit tough. It’s been a little bit tough not only in the casino district but throughout all of Downtown, But we have spaces available down here, some new bars opened and so we’re bringing these things together.

This week we have a meeting with the Fremont Entertainment District (east of the Fremont Street Experience). We’re the largest property in the Fremont Entertainment District, and we’re going to be meeting with the Fremont Street Experience and the Downtown Alliance to see what we can do together.

I think that Jeff Victor, with the Fremont Street Experience, did a wonderful job on New Year’s Eve. This was the place to be. I think everybody who came down here had a great time. It was well organized. I went out on the street several times during the night. People were having a great time. There was great diversity whether it was older couples, younger couples or families. He really pulled it off and did a great job for all of Downtown Las Vegas.

Is the new Fremont East area improving connectivity between your property and the Fremont Street Experience?

It’s not just the entertainment; the entertainment is wonderful and we want to continue that—but it’s also continuing on with retail, bars and restaurants. We have this condominium project that has been completed and is now open here. There are several apartments that have opened and condos on Fremont Street. People are starting to move back into the area, which is very important. We’re seeing more residents moving in down here and if we combine that with some retail and food it just makes a complete experience.

You’ve done a $20 million overhaul of this property. Could you explain some of the details of that project?

It’s actually up to about $26 million and still going. We were able to do all of the rooms in the hotel itself. We did all the rooms in both the tower and also the 50 rooms that were from 1941 that were built at that time.

Remodeling and reinventing those rooms was a lot of fun. The 300 rooms here are done, and what we’re looking forward to now is our new Cabana Suites. They should open mid-February or the first of March. It’s a very boutique hotel with a large lobby, business center and fitness center. The rooms are ultra-modern with flat screen TVs, iPod docks, walk-in showers, modernistic fixtures throughout. We hope that will draw a younger crowd that is coming down and is very active with these new clubs that have opened here on the street.

Are you looking to attract more locals than tourists?

The El Cortez has always been around 70 percent local. We’re letting them know what we have and what we’ve always had; what we’re doing to improve, to keep it fresh but at the same time to keep what the gamblers are used to. And that goes to the table games. We have single- and double-deck blackjack, everyone has gone away from that. We still pay full price on blackjack, which everybody now has gone away from. Those are things we don’t want to change; we want to keep to historic Las Vegas.

Every time there is a change, of course the customers are concerned. As older machines go away, people ask why we got rid of them. Sometimes they just don’t make parts for those machines anymore and so we have to cannibalize them. We have to take a bank of 12 and bring it to six so we have the parts to continue.

They’re always concerned about a change but a lot of our feedback—whether it be luncheons we have with the customers, both local and out of town, or the comment cards we review every Tuesday—the people support what is going on. They don’t like to see change in a sense, but at the same time, they appreciate better food, they appreciate a cleaner, more secure atmosphere, and so it goes both ways.

They’re the ones that tell us what is going on. These are sharp people. These people know where the deals are. They know the best place to play.

A hallmark of any Gaughan property—whether it is Jackie or Michael—has always been customer service. Is that still something that you emphasize with your employees?

We’re very very lucky to have the employees we have. A lot of them have been here for long periods of time. We’ve got some newer employees and that combination is great. You have that responsibility from the older and the fresh ideas from the new people and so that is always been good.

Does Jackie still play a role in operations?

Jackie is here all the time. We have lunch together every afternoon and dinner together every night. His office is right next door and he does like to spend a lot of time on the floor with the customers. You might run into him a lot playing poker downstairs. He likes to be around the customers as he always has. He’s someone who is free to talk to both for the employees and the customers.

By Casino Connection Staff

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