Resort lays off 40 workers

An executive says Las Vegas hotels typically lay off workers within a few months of opening.

By Hubble Smith
Review-Journal - Dec. 7, 1999

The Resort at Summerlin has laid off more than 40 employees in a move that's typical of Las Vegas hotels within a few months after opening, an executive said Monday.

Although many of the positions eliminated were casino dealers and floor people, cuts were also made in other areas, said Darrell Luery, who was named president and chief executive officer of the $276 million resort three weeks ago.

"The property's been open for four months," Luery said. "You always need to make adjustments. This has happened at every resort property in Las Vegas."

Luery noted that the layoffs account for less than 10 percent of the total work force at the resort, which has struggled with underperformance in early earnings.

"We developed a business plan for the property, and as part of that we had to evaluate the number of employees in each department," he said.

The adjustments account for current business levels and the experience gained by its staff following four months of operation.

"We had to get down to our fighting weight, then we had to complete our operations," he said.

The Resort at Summerlin last week opened its Aquae Sulis luxury spa and plans to have its 255-room Regent Grand Palms hotel tower open by New Year's Eve, according to the chief executive.

Conversion of the resort's Ceres restaurant to seafood cuisine has been a hit with customers, he added.

Luery, a veteran casino executive who took over a bankrupt Bally's in 1991 and turned it into a $90 million-a-year operation, said one of the resort's weaknesses is marketing.

"Our problem has simply been we haven't let the world know we're here," he said. "There are people in Henderson and even Summerlin who don't even know we're here. If they don't know we're here, they sure don't know throughout the world and throughout the United States."

Luery said he is formulating a full-scale marketing plan that will launch after the new tower opens, including "significant" special events that will get national attention and television advertising.

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