Mr. Trump Jr.

Development & Construction

Creating Distinct Hotel Positioning in a One-Industry Town

By Donald Trump Jr., Executive Vice President Development & Acquisition, The Trump Organization

Co-authored by Brian Baudreau, Vice President & Managing Director, Trump International Hotel Las Vegas

The white-gloved doormen opened the highly polished doors of the glittering, 24-karat-gold-clad Trump International Hotel Las Vegas in March 2008 – just as the economy went into freefall. In Las Vegas, the U.S. city most devastated by the sub-prime mortgage crisis, the recession hit especially hard. With Americans pulling back on traveling and on gambling as discretionary income tightened or even evaporated, casino revenues plummeted, group business – the city’s bread-and-butter – declined and the once bustling city experienced a steep drop-off in tourism.

In addition, this brand-new property was designed to be non-gaming and non-smoking. It offered intimate meeting spaces in a market dominated by convention centers and mega hotel meeting space. Punctuating the situation, a staggering 7,000 new rooms were poised to flood the hotel market over the next two years. It was a daunting beginning to be sure, but given that we are committed for the long term, we put our game face on and did what we needed to do to be successful.

Having risen through the ranks of The Trump Organization over the course of many years, from corporate security to vice president of development supervising the construction of Trump Las Vegas, Brian Baudreau ultimately took the reins as managing director of the property. Charged with the formidable task of making a success of a newcomer property, positioned as the antithesis of the typical Las Vegas mega-resort, this managing director had the additional challenge of doing it in the most trying economic environment in nearly a century.

The approach was a straightforward one: begin with a realistic assessment, identify the challenges, delineate the hotel’s strengths and capitalize on them in creating a strategy for success.

We decided to focus on the counterintuitive nature of our hotel as a non-gaming, non-smoking, “intimately” sized property. Instead of making gambling the focal point, we zeroed in on the attributes that make the hotel an oasis of calm in an otherwise bustling metropolis: the lack of a casino, the spa experience, dining and proximity to a major shopping center.

Non-gaming and non-smoking.

In looking at statistics from the LVCVA (Las Vegas Convention and Visitors Authority), one might be surprised to learn that well over half of visitors to Las Vegas come primarily for vacation or to see friends and relatives, while only 13% come specifically to gamble. When you consider those statistics, the non-gaming/non-smoking hotel model really makes sense and has a definitive market. What we have found in Las Vegas is that our guests are relieved not to have to contend with the ceaseless ding ding ding and the smoke of a casino, particularly when they come down for breakfast at our restaurant, DJT, or leave The Spa at Trump wanting to retain the sedative relaxation of a massage for as long as possible.

Clearly, Las Vegas’ biggest attractions are gambling and shopping.

As a non-gaming hotel Trump Las Vegas has an ideal location: the Fashion Show Mall – one of the nation’s largest shopping centers, with shops including Nordstom, Macy’s and Neiman Marcus – right out our front door. For those seeking the excitement of the Strip, we also have a shuttle that will take guests to multiple gaming and shopping destinations along the Strip. Guests can gamble or shop till they drop and then return to the calm, elegant atmosphere at Trump Las Vegas when they have had enough of the crowds and the noise. Given our proximity to the Fashion Show Mall, we have developed an excellent relationship with the mall and various of its tenants. As a result, we have been able to create special packages and exclusive events for our guests. For example, we offered the “Saks Fifth Avenue Shopping Soiree” last year. This exclusive package consisted of an overnight stay at our hotel, a spa treatment and dinner combined with a personal shopper/stylist and makeup consultation at Saks, capped with gift and shopping incentive cards. The relationship with the mall has spilled over to the hotel, too. Soon, we will host the first fashion show at our pool for guests and the community, showcasing the best of spring apparel from Fashion Show Mall.

Size.

Trump Las Vegas has 1,282 suites – large compared to its TRUMP HOTEL COLLECTION sisters, but considered “boutique” by Las Vegas standards. But being smaller has yielded significant advantages for guests, the primary one being easy ingress and egress, unlike casino-based resorts. When a guest walks into our lobby, it is grand but manageable; the check-in desks are clearly visible and just steps away from the entrance. Many people I know have had the experience of making a few laps at one of the mega-resorts – wading through casino slot machines and tables – in an effort to find the check-in desk. Once checked in, locating the elevators is another task. Our guests really appreciate the experience of arriving at the hotel and getting to their room within a few short minutes thanks to the intimacy of the lobby and check-in process. Similarly, the dining experience at our hotel, focused primarily on our signature restaurant, DJT, allow the guest an intimate dining experience in a fine restaurant where the food is the star. This is counter to the dizzying array of celebrity-focused restaurants in many Las Vegas hotels where the choices are confusing and many restaurants require advance reservations or are subject to long lines to get in.

Personalized Service.

In the Las Vegas market, service reputation is second only to price as a guest’s deciding factor in choice of hotel. At Trump Las Vegas, our guest tends to feel like a larger presence in a smaller space. We have put a number of personalized services in place, foremost of which is the Trump Attaché, an internal service department that contacts our guests prior to their arrival to offer to make arrangements in the event of special needs and services. These might include stocking the guest’s refrigerator with groceries from Whole Foods, determining their selections from the Trump Pillow Menu, or invoking a signature program such as Trump Kids or Trump Pets to accommodate more diminutive, but no less important, guests. Because of the Trump Attache program, repeat guests never have to remind us of their preferences. They are recorded and recalled from the first stay.

Spa.

While Las Vegas is known for its mammoth, outlandish spas, some as large as 80,000 square feet, The Spa at Trump is modest by comparison…and by design. An amenity spa, it is manageable in size, is staffed by excellent therapists, and delivers the same personalized service as does every other aspect of the operation. Here, spa guests choose from five signature Trump Personal Intentions – designed and named to Purify, Balance, Revitalize, Calm and Heal – and this choice directs their spa experience as they are guided by a personal Spa Attaché. In addition to a rich menu of classic treatments combined, The Spa at Trump offers unique Las Vegas-inspired treatments such as the Vegas Recovery Massage and Morning-After Eye Cure, a popular service in this city that rarely sleeps. In addition, we have established a relationship with celebrity skin health expert Kate Somerville to offer her treatments exclusively in our market. When it opened, our spa was named to Condé Nast Traveler’s “Hot List” and voted one of Spa magazine’s “Favorite New U.S. Spas,” and has consistently earned a Forbes Four-Star rating – proof that good things do come in smaller packages.

Part of our strategy is to regularly create new packages and promotions for the spa. As an example, we have recently launched the “Paws Massage Package” which consists of an in-suite 30-minute massage for both the guest and his or her dog, and the initial response has been strong. With the increase of guests traveling with small pets, we find they especially appreciate it when we lavish attention on their four-legged traveling companions.

In addition to communicating directly with past guests, we employ advertising, public relations and social networking in our marketing efforts. Being able to reach guests in the manner in which they want to receive information has been key to building a following and a robust repeat business over the past three years. As the economy improves, business momentum will follow. We feel it already and are finding that the strategy we have put in place is paying off.

For hoteliers faced with what may first appear to be shortcomings or insurmountable challenges, our advice is to analyze what you have vis a vis the market and the competition and then allocate your resources to cultivate and promote what makes your property unique. In addition, listen and respond to your guests. See what others in your market are doing well, and use that as a springboard for going above and beyond with offerings and service that are genuine to your particular property. Finally, look around to see what opportunities and partnerships may be within reach and do your best to make something of them for your hotel and your guests…who, when satisfied, will come back again and again.

Brian Baudreau contributed to this article. Mr. Baudreau is Vice President and Managing Director of the award-winning Trump International Hotel Las Vegas, and has worked for The Trump Organization for more than 20 years. Baudreau oversaw the construction and completion of Trump International Hotel Las Vegas as vice president of development prior to its opening in March 2008, during which time he worked closely with the general contractor as well as all sub-contractors and vendors to ensure that building timelines and budgets were met and that the Trump brand integrity was maintained at all levels of design and construction.

Donald J. Trump Jr. is an innovator and leader in today's young business world. As an Executive Vice President at The Trump Organization, he works in tandem with his siblings Ivanka and Eric to expand the company's real estate, retail, commercial, hotel and golf interests nationally and internationally. His extensive real estate development experience, rigorous education and inherent business sense add a level of detail and depth to the management of all current and future Trump projects. Mr. Trump Jr. can be contacted at 212-832-2000. or donjr@trumphotels.com Extended Bio...

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