Hooters Revisited: Confidence Amidst Uncertainty

Diane Taylor -- Tradeshow Week, 4/10/2008 12:54:00 PM

If you plan to meet Gary Gregg or CeCe Knapp, executives at Hooters Casino Hotel Las Vegas, be prepared to have your assumptions challenged.

Two years ago, the former San Remo Hotel on East Tropicana Avenue just off the Strip reopened as Hooters Casino Hotel Las Vegas. As one regular San Remo guest said to Knapp, “Sorry, I’ll no longer be coming to your property. Hooters and I don’t fit.”

Knapp, not to be dissuaded, told her, “You’ll like it here; we have fun and we’re a great value.” Knapp, who was formerly with San Remo and is now Hooters vice president of hotel operations and sales, finally convinced the customer to try Hooters, “and she’s been back four times since,” she added.

Gregg, COO of the property, likens the atmosphere there to that of a “Cheers” neighborhood gathering spot. The day TSW Las Vegas visited, he dressed as he usually does: in a Hawaiian style shirt and knee-length shorts. “Yes, we’re a relaxed, informal, friendly place,” he said.

But the big question is: How’s business? Responding to losses in 2006 and 2007, Gregg said, “During the fourth quarter of 2007, we added key marketing programs to promote revenue. We also overhauled expenses, reorganized our management team, restaurant operations, staffing levels, benefit programs and other expenses.” First-quarter results for this year are coming soon, and Gregg appeared optimistic. 

Hooters restaurant inside the resort is number one in sales volume of all 450 Hooters restaurants. Knapp said occupancy percentage last year was “in the high 80s, and we think we’ll be there again this year - if not in the low 90s.” 

Meetings at Hooters Casino Hotel are typically for groups of 25 to 75 people, although the showroom can seat 300 (before 6 p.m.), and the pool area can accommodate up to 1,200.

“Every major convention includes a block of rooms at Hooters,” Knapp said, adding that a monorail station across the street at MGM Grand Hotel & Casino added convenience.

Among Hooters’ meeting customers are Cirque du Soleil, Quiznos Sub and Yamaha.  Last year, Knapp spent 150 days on the road promoting her property.

Asked about a pending sale of Hooters, Gregg said the owners of the hotel did not purchase it with the intent to sell, but an offer came that was hard to dismiss. Potential owners Hedwigs Las Vegas Top Tier are paying $500,000 per month (in addition to the purchase price) for their option to purchase the property, and they have until June 30 to make a decision.

 “We don’t know what eventually is happening with the property,” Gregg said, “but we’re operating as if our future is unlimited."

“We’re also booking rooms into 2009,” Knapp added. “We’re getting requests for rooms, so we have a caveat regarding a change of ownership, but we’re booking nonetheless.”