The Largest Resort on the Las Vegas Strip that NO ONE can Visit

The Largest Resort on the Las Vegas Strip that NO ONE can Visit

What’s up, guys! Welcome to Abandoned Explained, my name is
Jonah Stahl, and I’ll be your host today! Here on Abandoned Explained, we provide urban
explorers with an entertaining overview of the most unique abandoned locations, that
you won’t hear about anywhere else. In today’s video, we are going to be talking
about the largest resort on the Las Vegas Strip that you cannot visit, the FontaineBleau
Resort. The Fontainebleau is an unfinished, 68 Story
Casino Resort located on the Las Vegas Strip. This immaculate resort would have featured
thousands of rooms, around 1,000 condominiums, a 3,300 seat performing arts theater, numerous
nightclubs, 24 restaurants, a giant casino floor, and indoor/outdoor conference areas. This resort would have been a slice of Miami
Beach on the Las Vegas Strip. The resort is located on the Struggling North
Side of the Strip. So if it would have opened it surely would
have dominated this portion of the Strip. So what happened? What caused this resort that would have surely
been unrivaled to fail? The FontaineBleau Las Vegas was intended to
be the sister hotel to the immensely popular 1950’s era resort on Miami Beach in Florida,
also named the FontaineBleau. As you can tell, they were quite creative
when it came to coming up with the name for the Las Vegas Resort. Developers hoped that the popularity of the
original resort would translate over to the Las Vegas Resort. The Miami Beach Resort gets much of its popularity
from having been in many famous films such as James Bond Goldfinger, Police Academy 5,
and Scarface. The Floridian Resort is arguably the most
luxurious resort in Miami Beach, so the Las Vegas Resort would have had a lot to live
up to. This was a task that developers were willing
to take. In 2005, Turnberry Associates (God I hope
I said that right) bought the Florida Hotel for 165 million dollars. After purchasing the Hotel, Jeff Soffer, CEO
and Majority owner of Turnberry Associates opened another company known as FontaineBleau
Resorts LLC. I assume he did this so he could operate the
hotel under the company brand. Jeff Soffer had major plans for the FontaineBleau
Resort Name which included an expansion of the brand to the Las Vegas Strip. You see, Turnberry Associates always wanted
to get in on the gold mine that is the Las Vegas Strip. In May of 2000, they purchased a former Las
Vegas Casino, the El Rancho Hotel, for 45 million dollars. Jeff decided to purchase the failing casino
due to the amount of land that would come with the property, a total of 21 acres. This deal was a steal for Turnberry since
after their initial acquisition, land value dramatically increased. After their purchase, developers imploded
the failing casino to make way for a London Themed Resort that ultimately never materialized
due to the September Eleventh attacks which caused major issues for Travel and Tourism
Industry. Although this plan did not pan out the way
they were hoping it would, Jeff Soffer had new and better plans for the property. In March of 2005, Turnberry Associates purchased
3.7 acres of land south of the El Rancho property for 97 million dollars. The company now had Twenty Five Acres of land
on which they could build on. Later that year in May, plans were announced
to expand the FontaineBleau Brand to the Las Vegas Strip. Turnberry Associates stated that they were
going to build an immense Casino Resort that would include nearly four thousand hotel rooms. (This number was eventually downsized however). The company expected construction to begin
by March of 2006, and that the resort would be opened by 2008. At the time, many thought the resort would
be wildly successful since it was going to be located on the north side of the Las Vegas
Strip, where many of the oldest and tackiest hotels are located. Many thought this would be a golden opportunity
to bring some life back into the struggling north side since tourism was booming at the
time. Shortly after announcing their plans to the
public, FontaineBleau Resorts LLC made the decision to hire the former president of the
Mandalay Resort Group, Glenn Schaeffer. Glenn was brought onto the project due to
his executive gaming experience, as well as his major influence in the Las Vegas Gaming
Industry. His main role in the project would be to oversee
the new project as the president and chief executive officer of Fontainebleau Resorts
LLC. FontaineBleau Resorts hoped that by bringing
him onto the project, he would be able to cut construction costs as well as secure the
much needed funding for the resort. At this point things were beginning to come
together for developers. The following year (2006) in August, plans
for the 735-feet hotel tower with nearly 3 thousand hotel rooms and almost 1,000 condominiums
were approved by the county. The company experienced a small delay however. Construction was delayed until the following
year due to concerns of residents’ of Turnberry Place (an apartment complex located east of
the planned resort) about the increase in traffic caused by the new resort. Eventually, these concerns were addressed
and a new construction date was set for February of 2007. Nearly a year past the projected start date,
construction began on the resort in February of 2007. The Construction was to be completed by Turnberry
Construction. A few months later in April, Publishing and
Broadcasting Limited, Australia’s largest gaming operator, purchased 19.6 percent of
Fontainebleau Resorts for $250 million. The project was expected to cost around 2.8
billion USD to complete, so this purchase provided the resort with the funding to continue
construction on the property. While this deal took place, preparation work
was already being performed on the property. It was also at this point that the hotel was
downsized from 68 stories to 63 stories. Why they did this? I really have no idea since they still planned
on having nearly 3,000 hotel rooms and 1,000 condo units. By June of 2007, FontaineBleau LLC. secured
4 billion dollars from a variety of financial institutions like Bank of America. (They come into play later so remember that
Bank of America was a major part of this funding). This money was to be used to pay off company
debts as well as finish the Las Vegas Resort. With the funding for construction secured,
FontaineBleau LLC predicted that construction on the project would be completed by 2009,
only a year later than expected. The company stated that when the resort was
finished, less than one third of its revenue would come from the casino. I guess they thought the theater was gonna
be a real big hit. In October the project ran into trouble when
plans were approved to increase the parking garage from seven stories, to twenty three
stories. Why such a drastic change, the world may never
know, but what we do know is that this plan really pissed off residents of Turnberry Place. They alleged that they were deceived by Turnberry
Associates, stating that they were never informed of the decision to increase the size of the
parking garage. Turnberry Residents stated that prospective
buyers were told by Sales Representatives that the garage would only be seven stories
tall with two levels completely underground. The residents most substantial claim however,
was that the garage would violate Clark County Ordinance, Title 30. In simple terms, Title 30 states that for
buildings next to residential properties, for every one foot of building height, the
building must be set back three feet from the property line. According to residents, the garage is only
36 feet away from Turnberry Place western property line. The biggest concerns for the residents was
not their view being compromised, but the fact that the garage would bring a lot of
noise and pollutants right next to their homes. In response to the claims by residents, Turnberry
Associates CEO Jeff Soeffer said that Turnberry did a “respectful” job of building the
hotel tower away from residents. He went on to say that nothing was ever promised
to residents, and the property was zoned for a hotel and casino, so residents knew something
would eventually be built on this land. In this case, I honestly have to agree with
Soeffer. While it sucks for residents that their view
is gone, you cannot expect a company to buy land on the Las Vegas Strip and leave it vacant. I’m also not the only one who shares this
view. Turnberry Residents had a district judge rule
on whether or not the Clark County Commision should have approved the garage redesign,
since it allegedly violated the county ordinance. The district judge ruled in favor of the re-design
stating it was legally approved. In 2008, when the subprime mortgage crisis
hit, no major city was more devastated than Las Vegas. Many Americans felt that the excessiveness
of the Las Vegas Strip was just simply to much, and casino revenues plummeted. Unemployment skyrocketed and many homes went
underwater. (meaning that homeowners owed more on their
home than it was worth) In April of 2008, Fontainebleau Resorts stated
that they would be continuing construction despite other local projects experiencing
extreme financial issues. The company stated that the resort was fully
funded and the recession should have no effect on the completion of the resort. At this time the resort had 2.4 billion dollars
in debt and decided to try and downsize the debt by putting the 1,018 condos on sale. The company expected the presales from the
condos to rack in between 700 to 900 million dollars. They hoped that these sales would enable them
to get rid of a considerable amount of their debt on the resort. Unfortunately, these hopes never panned out
due to the extremely poor economic conditions at the time. By November of 2008, the FontaineBleau Tower
was topped out meaning that all they had left to complete was the interior. Even though things were not going well for
the resort at this time, things took a turn for the worst when 2009 rolled around. A year after the planned opening date, Fontaine
Resorts President and Chief executive Glenn Schaeffer left without comment in May of 2009. Schaeffer’s departure came a week after the
company had began layoffs in the corporate offices and a month after construction on
the project slowed down. (3,300 construction workers were downsized
to 250 workers) Schaeffer’s departure was a bad sign for
the already bleak future of the resort since he was the designated casino operator with
industry experience and was a previous Gaming Control Board licensee. Schaeffer’s departure left FontaineBleau
Resorts LLC scrambling to find someone else to take control of the multibillion dollar
project. This task was made harder since not only were
profits on the Strip extremely low at this time but the new resort would take years to
make profit. Keep in mind, Schaeffer was responsible for
securing over 3 billion dollars in funding for the project, so finding someone to fill
his shoes would not be an easy task. During the construction phase, the project
had gone 375 million dollars over their revised budget. This prompted one of the primary lenders,
Bank of America, to terminate their loan commitment which would have provided future funding for
the project. Bank of America was supposed to provide the
project with nearly 800 million dollars in funding. This event unfolded shortly after Schaeffer’s
departure from the company. With a loss of their CEO and primary lender,
the Fontainebleau Las Vegas was in a serious predicament. The company would now have to not only find
a new leader for the project, but also secure nearly a billion dollars in funding to fill
the void Bank of America left. At this point, FontaineBleau Resorts was in
some serious hot water. According to financial analysts who were following
the project, it would cost nearly 3.5 billion dollars to finish construction on the resort,
nearly double the projected cost. This debt would go on top of the well over
2 billion dollars of debt that company had already invested into the project. Due to this, along with Bank of America refusing
to provide future funding, the company was left with no choice but to file for Chapter
11 Bankruptcy protection in June of 2009. Fontainebleau LLC hoped that by filing for
Chapter 11 Bankruptcy Protection they would be able to finish construction since the project
was 70 percent complete at this point. Following their filing for Chapter 11, Fontainebleau
LLC filed a 3 billion dollar litigation suit against Bank of America claiming they wrongfully
withheld funds from the project. But, in 2012 the case was resolved in favor
of Bank of America. Honestly, I find this lawsuit to have been
a desperate grab for cash by Fontainebleau LLC. While it was wrong for Bank of America to
withdraw funding that was previously agreed upon,it was not unreasonable for them to withdraw
the funding. Bank of America did this to prevent them from
losing even more money. Many financial analysts believed it would
take years for the project to become profitable, meaning it would take quite a long time for
the Bank to break even on the deal. I believe Fontainebleau LLC sued them in order
to secure cash to not only finish the resort, but pay off the debts associated with the
construction of the resort. IF they would have won the suit they would
have been able to not only finish construction, but they could have opened the resort and
possibly have made profit during the first year of operation. In the companies last, desperate attempt to
secure funding for the resort, Fontainebleau’s Owner sued himself in the form of the general
contractor suing the hotel ownership company, Turnberry Associates. Keep in mind, both of these companies are
owned by the same person, Jeff Soffer. This was a terrible attempt to force creditors
to supply funding for the completion of the resort. Unfortunately, suing themselves did absolutely
nothing to secure funding and the resort would remain unfinished.By July of 2009, Construction
work was completely halted on the resort. Among the uncompleted portions of the resort
were many restaurants, along with some of the hotel rooms. According to Steve Duncan, a Urban Historian
who snuck into the unfinished resort, many of the rooms were complete but stripped down. Later that same month, the resort sought permission
in bankruptcy court to cancel events that were to unfold in 2010. Some of these events included numerous meetings,
and conventions. They also sought to cancel employment contracts
and default on a lease for office space which would have been used for Fontainebleau’s
employee recruitment center. So what’s next for the resort? Well, on February 18 of 2010, Billionaire
Carl Icahn purchased the resort for $150 Million Dollars. Following his purchase, Icahn auctioned off
the furnishing previously intended for the resort. In November of 2015, Icahn listed the resort
for sale for the asking price of 650 million dollars. The hotel was listed through CBRE Group who
stated that it would cost around 1.2 billion dollars to finish the resort, which means
it would cost less than 2 billion dollars for a buyer to enter the Strip Market. This meant that it would cost around 500,000
dollars per room, half of the one million dollars per room it cost to build new. In August of 2017, nearly 8 years since construction
was halted on the infamous resort, Wilkoff Group, and New Valley LLC
purchased the resort for 600 million dollars. Immediately after their purchase, the new
owners set forth plans for a major redesign of the property, as well as plans to waterproof
the project. Project Blue, as it was known to the new developers,
would have a second shot at life. Construction is now expected to resume sometime
during 2018. The new owners of the property have partnered
with JW Marriot to open and rename the project “The Drew”. The Drew will feature nearly 4,000 hotel rooms,
and 500,000 square feet of convention and meeting space. The Drew will also feature two Marriott Brand
Hotels, The EDITION, and JW Marriott Hotels, making this the first Marriott Hotel to open
on the Strip. A new completion date has been set for late
2020, and the hotel will be connected to the expansion of the Las Vegas Convention Center,
meaning that it’s main focus will be visitors attending conventions there. If the project is completed it will create
5,000 construction jobs, and 6,000 jobs upon opening. Now that we have covered the downfall, and
what’s to come for the project, this is the part of the video where I am going to
give my opinion on what caused the resort to fail, as well as if I think the new resort
will be successful. I personally think the Fontainebleau was a
victim of horrible timing. When developers decided to start construction
at the beginning of the Financial Crisis of 2007-2008, they were fighting an uphill battle. What I mean by this is when an economic crisis
hits, the first thing people stop spending money on is traveling. When you are barely able to afford your house,
people are not going to want to go and spend money on going somewhere exorbitant. This is especially true for Las Vegas since
Vegas’s tourism economy is practically built on blowing money. When you think of Las Vegas the first thing
to come to most people’s mind is gambling, expensive shows and dinners, and so on. Jeff Soeffer should have realized that since
your average Joe’s bank account wasn’t looking to hot, it probably was not the best
time to build a CASINO Resort. If they had waited a couple more years, things
might have worked out for them. Now do I think things will work out for the
Drew? The short answer is yes I do. Wilkoff Group and New Valley LLC got an amazing
deal on the property. According to CBRE Group, a real estate company
in the Las Vegas Valley, they said “It will cost about $1.2 billion to finish Fontainebleau. Combined with a purchase price of $650 million,
it would take less than $2 billion for a buyer to enter or expand on the Strip market. That’s about $500,000 per room, just half
of the $1 million or more per room to build new.” What they mean by this is the new owners are
going to pay half of what the original owners would have payed to open the resort. This means they will have considerably less
debt, thus making it easier for the owners to make a profit short term. The Drew is also located on the North Side
of the Las Vegas Strip. For those of you who don’t live in Vegas,
or have never visited the Las Vegas Strip, the North side of the Strip is quite sketchy
to say the least. Many of the Casinos on this portion of the
Strip are run down and honestly quite disgusting. The Drew should dominate this portion of the
Strip since it will be considerably newer, more modern, and hopefully a lot cleaner. Another key factor in the success of the Drew
is how much they end up catering to Convention Center Visitors. If they connect the resort to the expansion
of the Las Vegas Convention Center this will be a game changer for them. Many people who visit Las Vegas to attend
conventions stay in either AirBNB’s near the Center or hotels within walking distance. The reason many people do this is since Uber,
or Taxi rides on the Strip are ridiculously expensive. The closer people stay to the Convention Center,
the less they will have to pay to get there. If the Drew goes through with their plans
to connect their Resort with the expansion of the Convention Center, they should dominate
the tourism market for the Vegas Convention Center. Tourists won’t have to pay for rides to
the center, or pay for rides to get food since the resort will have restaurants. In my opinion, they should see massive profits
from this since the market for the Convention Center is only getting bigger, and many of
the big resorts on the Strip don’t focus much on convention attendees. Construction has already begun on the resort,
and only time will tell if things pan out for the new owners. I truly do hope things work out since I’ve
always been quite interested in what the resort looks like on the inside, and if they open
I’ll finally be able to see the interior. Anyways, this is going to be the end of the
video. I hope you all enjoyed this video since I
really enjoy making this kind of content. If you have any places you want me to make
a video on, let me know down below and I’ll probably end up making a video on it. If you enjoyed, be sure to leave a like down
below so I know you enjoyed the video. Also, make sure you subscribe and turn on
post notifications so you’ll be informed when my next video comes out. Youtube’s doing this new thing where your
sub box is no longer in any real order, they base it off what THEY think you’ll want
to see so make sure you turn on post notifications so you’ll be informed when I upload next. I’ll be posting a new video every Friday,
but sometimes I’ll be uploading throughout the week, so make sure you press the bell
icon. Thanks for watching and I’ll see you all
next video, Peace!

100 thoughts on “The Largest Resort on the Las Vegas Strip that NO ONE can Visit

  1. Vegas isn't Vegas anymore. It's a festering shit hole and isnt worth the time or money to visit. Maybe buying some real estate but that's about it.

  2. Turnberry is also the company that built the surprisingly good Signature at MGM Grand, which went spectacularly bankrupt also…and left behind one of the nicest affordable major-resort rooms on the Strip (albeit the BACK of the Strip)

  3. I’ve lived in Vegas my whole life but I’m only 14 so I don’t even remember that building and starting when I was Wayyy younger and till now we would go to the strip about every weekend

  4. I feel bad for the 1st company. They had the best of intentions and basically got fawked by more than just Bank Of Murica!

  5. AE, thank you so much for the detail explanation of the "Blue Blight" on the Strip. I, too, had high hopes for the resort as LaFountaineBleu, but when its developers are just downright idiotic, it's hard to root for them. Now that it is owned partially by JW Marriott, I will give them so much support.

  6. Boooo 👎👎👎 Comercials / dont watch this video the uploader is a ceap Cake! 👎👎👎I deleted your channel from my playlist! I dont like people who are greedy 🤮🤮🤮🤢🤢🤢

  7. I am surprised that Donald Trump did not buy this place. He would have made that place work. TRUMP 2020😊🇺🇸🇺🇸🇺🇸

  8. "The Drew" is a foolish name, I would have used " The Oasis" , Dumb executives don't even know how to name a hotel properly, fuckin assholes.

  9. Who has the crystal ball? Who knew there was be fallout from the Obama administration…oh 🙋🏼‍♀️ did. They need a tram…like a Disney ride type tram.

  10. There's a lot of properties that have the most ominous feeling you'd ever feel in your life and those properties seem to never really do too well or they sit abandoned…

  11. weird thing that Donald Trump didn't the this hotel because it's on the Las Vegas Strip think he want to look at the strip where women will strip naked or nude any he dose love the word strip plus the hotel would have a lot femlas workers which he also loves too

  12. Great info, however the reporter did have one thing incorrect. Marriott has two other hotels on the strip at the South end. The Marriott Grand Chateau which is next to Planet Hollywood and the Aria which is across the street which is also a Marriott brand hotel.



  14. They better get ready they will be getting them RAIDERS NFL them and everyone will be there so there gone gone to need it very soon next year!

  15. Boy…. Where do you get your information? Trump's wife had deals with Vegas. Brad Pitt. George Clooney. I can go on and on…. 2008 killed everything. That place was never gonna happen. Trump and Wynn and Venetian stood it's ground. Yeah right. The stratosphere and s mega resort?? Retarded idea… Get the facts!!

  16. Developers greed is prioritised than residents needs. That space would have been better suited into creating a green space the likes of a decent sized public park in which to hold concerts and other events in. A space in which Las Vegas residents as well as tourist had a place to escape from all the hustle and bustle of the entire Las Vegas strip.

  17. Thank you for the info – we drove past it for years and wondered what was going on with this building… very informative – again thank you for sharing!!

  18. vegas local and when he said gambling would be a small part of their total income that isnt shocking.. all of vegas, but as an employee i can speak more specifically for mgm resorts which owns most of the casinos on the strip, is trying really hard to move away from being associated with just gambling and more being known as “entertainment” and fun for everyone, even non gamblers.. we had a whole section in our hiring seminar type thing where they talked about not being just about gambling and being about entertainment and specifically not just encouraging gambling lol

  19. There's less and less smokers now. HAve non smoking gambling floors/rooms. The whole floor. Baccarrat non smoking please. Less than 8% of the people smoke now. Where I live less than 5%. We want sunlight and fresh air with nice smelling trees not dark places. Healthy foods that don't give us heart attack. Right now I"m suffering from too much salt in restaurant food. There's reasons why many people don't go out to eat any longer. I hope someone is reading this. Fat and Skinny people are getting heart attacks. Don't believe me? Bet you know someone with high blood pressure (almost l/2 of the people) and diabetes. Going to vegas soon, to find places that won't smoke me out.

  20. the miami beach hotel is pronounced FountainBLUE not Fontaineblue .. i saw Gloria Steffan there in a tent with Miami
    sound machine before her marriage to Emelio in a tent on the exterior .. and the rest is history.. what the miami
    facility has that Vegas will never have is the ocean, salt water and beach ???

  21. The fountain bleu in Miami Beach is fucking diamond. Awesome restaurants and liv one of the best night clubs in America. If Miami Beach was to get into gambling , Las Vegas would be hurting right now. The east coast crowd would be there. Shit half of Newyork and the super wealthy are moving to Miami and Fort Lauderdale. Already. No taxes no nyc bullshit. A lot of banks and Wall Street firms have down to south Florida. I really think this fountain bleu casino in Las Vegas will be successful if it’s ever finished. Just get the cops to clean up that part of Las Vegas. Put a big ass police station there.

  22. "Uber and Taxi rides on the Strip are ridiculously expensive"
    Well, taxis are expensive anyway, but don't charge extra for being on the Strip, and rideshare prices are way cheaper, and again, being on the Strip has no bearing on the price (Unless during times when demand is high, but that is the same anywhere in town)
    Strip to convention center is cheap in a rideshare because it's actually really close.

  23. Good video on a subject I knew nothing about. I’ve stayed at the Fontainebleau in Miami and it’s great. It’s a shame this fell through. Hopefully this new venture works.

  24. Good info! You have inspired me to work on my own Vegas travel channel. I would love to hear your feedback and let me know how you like my work. Hit subscribe and let me know! 😊

  25. there is more to this story ….. because insiders knew there was a bubble in the housing market as early as 2005 (sure they thought it would never happen because the housing market is backed by the government ) but Jeff Soffer must have pissed in someones Cheerios , to be left holding that big bag of excrement…….

  26. they made it too tall, people on the ground being shot from the top floor barely notice! also, you can't shoot the planes, it too far away from the airport, humpf

  27. Interesting video. Ive always wondered why this building was taking forever to complete. Now, it looks like another recession is coming before or after the elections. Smh

  28. This could very likely fail again. if Trump sends the economy in to a recession again. and that is exactly what he is doing. but you never know he might purchase it for himself. (imagine) it might become The Trump resort. or else he would dismantle it. like he has many times in the past. the impact study on the parking garage sounds eerily similar to another giant corporation. guess who.


  29. This is a good video but maybe lay off the scrolling webpages with unreadable text. Headlines with the source site visible will suffice.

  30. i work in construction i was one of the last guys to work there then one day we left and never came back we all thought we would back in a few months…. many years later…. still not even word of it starting again. maybe with the casino i am currently working at ( resort world) they will start work again

  31. Allegiant Stadium to open in late July 2020. for Raiders preseason games.
    Resorts World to open in late 2020
    Circa scheduled to open in late 2020
    The Drew scheduled to open in 2022

  32. This is what happens when developers have their heads up their asses. I hope the property is demolished and becomes open desert land again. Fucking assbites!

  33. I'm in Canada in an almost recession proof area of the BC coast, and in 2009 when the credit crunch hit, const. sites stopped completely in five days. Our company went from 114 employees to 14 in less than five months. It took nine or ten months for well positioned companies to resume building already approved/designed buildings. Things happening in finance in New York and London had an immediate and disastrous effect on us. And we're a tech, tourist, and major destination area. We continued our move upward but the body slam caught a lot of people with their proverbial pants down.

  34. After 48 seconds of this BSF wannabee yelling into the mic I decided my time was better spent elsewhere. Next time try not screaming at us like we were deaf, seniors.

  35. Jesus Christ, how can you fucking BUTCHER the pronunciation of one of the most famous hotels in the country? Pronounce it like a Fountain and the color blue. Not Fontaine. It's French you stupid twat!

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