Fantasy Springs raises bar for destination casinos

Public Record, The, Jan 25, 2005 by Kleinschmidt, Janice

A 1,000-square-foot Avalon Bay clothing store is the first tenant of a retail concourse connecting the casino and hotel. Another 2,000 square feet are available for more retailers. CEO James McKennon says the resort is looking for a signature restaurant with noncompeting cuisine or a spa operator to rent another 5,000 square feet along the concourse.

Although he declines to state specific numbers. McKennon says he is "very impressed" with room bookings since the hotel's soft opening on Dec. 21. From then until the Dec. 28, the number of rooms available was restricted from 25 to 50. "We wanted to make sure systems, policies, procedures and staffing all were practicing," he says, adding that the occupancy rate for the first month of operation will be above the average rate in the Coachella Valley. "February and March bookings are strong as the word has gotten out - similar to what you would see ... for other top properties in the valley," McKennon says. Fantasy Springs now advertises $99 grandopening rates: weekend rates will range from $129 to $199 based on availability.

A number of local residents have been hotel guests for a night, though most business has come from outlying Southern California. "We started marketing the project in November," McKennon says. "As we rolled into December, we started ratcheting up our marketing efforts in the Los Angeles and Orange County marketplaces." The resort approached those areas "with gusto," he says. running radio and print ads and moving its billboard ads further cast on Interstate 10 (McKennon says billboard advertising in Los Angeles is prohibitively expensive).

The new additions "gave us the ability to start branding the resort as a resort rather than just a casino." McKennon says, with Balagan as "the vehicle."

"We also have employed the power of the Internet through good placement and a variety of different travel partners," he says.

According to McKennon, since expanding its offerings, the Cabazon tribe has "seen a dramatic uptake in volumes" at the casino. Customers had one-hour waits at the buffet and Bistro restaurants the weekend after the grand opening. The lounges also proved popular. "The feedback has been extraordinary." McKennon says. "One thing I am really happy about is we are seeing people just lounging around out on the plaza. ... which is exactly what that space is meant for."

In the next couple of weeks, he says, Fantasy Springs will bring entertainment to the amphitheater to draw people into the plaza after dinner. The amphitheater is just beyond the buffet outdoor terrace and VolleyBar and is just below the Bistro terrace.

"We don't just want to be a casino," McKennon says. "We understand where our revenue comes from, [but] we want to diversify our customers' experiences. Those other assets will drive more trips and loyalty because there are so many other things to do." He reveals that plans call for outdoor concerts in the plaza beginning in late spring or early summer, with a nominal $5 charge.