It was announced in today' RGJ that the new owners plan to turn the Siena into a five-star hotel. Yay?
The Siena right now is in total turn-key condition. With everything down to the last bed sheet still in the building and nothing being liquidated, the new owners of the Siena could in theory have the place operating within a month or two, and that's exactly what Grand Siena LLC told local news outlets earlier this week...their goal is to get the restaurants and hotel up and running while they go through the often-slow process of getting a gaming license.
A few things about the transaction surprised me. I did not expect the three bidders at the auction to be gaming-centric. On the heels of yet another dismal report for Washoe County gaming revenues, one would think gaming, particularly in Washoe County, would be the last thing on an investor's mind. But perhaps acquiring the property and its contents for a mind-blowing $3.9 million makes any business seem feasible. After all, it's a gorgeous property, one of the best looking downtown.
I was surprised when Grand Siena LLC announced they plan on reopening the closed hotel and restaurants ASAP, and would also retain the same name, The Siena. A smart move? Or not-so-smart move? It's definitely a smart move if you are looking to reopen as soon as possible. Rebranding can be expensive and time-consuming. From casino chips to napkins to posters to signs, the cost of simply introducing a new name is astronomical. But I need to point a few things out;
1. The Siena is the best house in the worst neighborhood. The Lakemill Lodge is still there. Joseph's Inn is still there. In the Siena's south-facing rooms, guests have a front row seat to all the 'action' that happens at Lakemill, the Section-8 apartments just south of Lakemill, and Joseph's Inn.
The weed-ridden empty lot and deteriorating diagonal First Street just north of the Siena still exists. The Reno Aces Ballpark and Freight House District are fantastic additions to east downtown, but the Siena has a mere one-block advantage when it comes to walkability over other nearby hotels like Harrah's and Eldorado.
So, perception will be the first challenge for the Siena to overcome. Is it possible to be a five-star hotel being surrounded by one-star motels? Also, let's not forget that when the Siena original opened, it was billed as a five-star luxury hotel with 'one of the best spas on the West Coast'. That positioning didn't work too well for the Siena, and they soon realized their best bet to survive was try to tap into the locals, but as we all know, by then most locals ignored the Siena.
2. Money Money Money. The Siena had over 400 creditors listed in its bankruptcy papers....local businesses Siena owed money to. At various points in its recent 2-year history, The Siena had been operating without paying property taxes, gaming taxes, hotel room taxes, utilities, sewer, mortgage, land lease, casino lease, or their vendors and STILL couldn't make it. The big question is...why? What are the new owners going to do differently?
3. The Real Losers - It may seem like a win-win situation. The Siena sells and will reopen soon, and hundreds of people will be put back to work soon. But I'd like to take a moment to recognize the true losers in this deal...the private investors who trusted Barney and Walter NG, and who saw their retirement and life savings wiped out in the midst of a father-son battle that rivals any plot in Dallas or Dynasty. When the Sienna sold at auction, the private investors of Bar1K/Wild Game/REReno saw their $50,000,000 investment obliterated. The family feud between Barney Ng (Siena Hotel and Casino, Wild Game Ng, One South Lake Street, Five Way, and a couple others entity names) and Walter Ng (Golden Mountain, Bar-K, RE Reno) ultimately cost the Siena, and was a HUGE slap in the face to the tireless employees who tried to make the property work against all odds.
And that brings us to today. Despite all the challenges, there is a strong band of faith in this community and beyond toward the Siena. As a community, we don't want to see closed down buildings and people out of work. We want our city to be successful. While I have reservations about keeping the same name and re-opening the Siena as a full-fledged hotel casino, I share the new owner's passion and strongly believe with the right management and no debt, the Siena can be a success.
I hope the new owners take a long hard look at Siena's history, there are a LOT of lessons to be learned. Oh and plunking down enough money to buy Lakemill Lodge so the owner walks away from his investment would help too.
I always value my readers' thoughts and opinions, so how do you feel about all of this?
Mike, it shows there IS confidence in our marketplace, especially downtown. This is really good news. Most gaming analysts ie, Bill Eadington, said the Siena would never sell and sit there dark for years, well he was WRONG wasn't he? It just makes me so angry these people play down Reno when they don't even realize how attractive it is. So in regards to the Siena, these owners aren't Barney Ng or his family, they are smart and sound like they have some experience. They will do a great job and don't think they will stop with just existing facilities, to really make it work, they would pay to clean up some of the blight around it. As a person who is interested in such a business, hotel/casinos, major works will be done to the Siena in the next year. I can't wait, like you, to see what exactly they're going to do but in my mind I see them expanding it, with a parking garage included. Only time will tell but that is my assumption, I wish them the best of luck and will be there when it reopens and will support it to no end. Now, let's get the FITZ REOPENED!! I know Fernando has to be watching what's unfolding with the Siena.