
On Monday, the London-based Dennis Publishing announced that they have signed a $1.2 billion dollar plan with real estate developer Concord Wilshire Partners to build the Maxim Hotel & Casino. This catapults Maxim into the same league as other men’s powerhouses Playboy and Hooters, both of which have launched casinos in Las Vegas (Playboy is launching later this year).
The new Maxim Hotel & Casino is slated to open in 2010 and will taut 2,300 rooms, a 60,000 square-foot Casino and a host of services including a luxury spa, high-end retailers, celebrity chefs and lots of conference space.
If that isn’t enough to pull in the crowds, Dennis Publishing will use all their connections, starting with the Maxim Lounge, a space that will unite the brand with night life impresarios Rande and Scott Gerber. The company's music magazine, Blender, will also get top billing on the outdoor and indoor concert spaces, so you can expect great concerts and guest artist to be at the venue on a regular basis.
It seems like a perfect fit for the magazine, which is one of the leading men’s publications in the world, catering to young men’s interests – gadgets, clothes and sexy women, among other things. According to Stephen Colvin, president and chief executive of Dennis Publishing U.S., "Vegas has always been - and is increasingly becoming more so - a natural home for an entertainment brand targeted at a young audience."
“Over the past couple of years, the magazine's brand has graced a growing number of products, like duvet bedding, home office and entertainment furniture and even frosted hair dye, all seeking to embody the spirit of the fun-loving Maxim man,” according to reports in the International Herald Tribune. “But the hotel deal could prove to be the most lucrative.”
“Concord Wilshire is paying Dennis an upfront fee in the mid-seven-figure range,” said Steve Sirang, the company's chairman and chief executive.
Adam Steinberg, a gambling industry analyst for Morgan Joseph, said that the “Maxim brand should be able to create some buzz but that the planned hotel and casino would still have to overcome some competitive hurdles.”
With Vegas’ return to night life, I think it’s a safe bet that the publishing giant will see maximum returns on this venture.
