Creative Conversations with Max Tappeiner

The principle of ready, aim, fire is kind of out the window over the last 12 months. It's fire, aim, fire, fire, fire, ready, fire. That's the pace we're moving at right now. But hey, this shall pass, and we will come out of this, and our industry will stabilize.

Thank you, Joe. It's a privilege, and thank you for having me.

That's right. We're looking at a summer opening, but the earlier the better. Maybe June, July is hopefully when we'll be opening the doors.

Thank you, Joe. We sit on 88 acres, a massive parcel of land, at a price tag of a little bit over $4 billion, one of the most expensive private developments in the history of the Las Vegas Strip. It's a mega project. We're the largest private construction site in the United States right now. We have 3,500 construction workers on site every day. When we are finally done, it will be one of the must-see destinations in the world. We will have 3,500 rooms, a state-of-the-art theater, we're bringing in Zouk and Ayu, some of the best entertainment in the world. We will have restaurants, an incredible spa, and a service experience that is second to none.

Thank you, Joe. It speaks to the embrace of technology and tech-forward thinking that we deploy here. There is this massive 100,000 square foot screen that sits on the side of one tower, and then two additional screens that all interact with each other. When you think back to 1999 when the Bellagio opened, or 1989 when the Mirage opened, the first time you saw the fountains or the volcano, there was a real sense of awe and wonder. Over time, Las Vegas hasn't had a renewed sense of wonder. Now that it's 2020 and there hasn't been an opening of this scale for over 10 years, we're looking to bring that sense of wonder and awe back to Las Vegas. We hope to create content for these screens that you will have to come and see, because there won't be a tech-immersive experience like the one we're creating here anywhere else in the United States. You'll be able to see these screens when you fly in. I flew in just last week on a Saturday evening, and as you fly in you can see those screens, and of course as you get closer, the better the view and the more incredible the experience. We'll use that to draw you in, and then the property experience will be even better, and the technology experience on property will be even more state-of-the-art than the screens on the facade.

Oh, there is absolutely. Ron and his team are so talented, everything they're producing is best in class. The hype in the community, speaking to that, we posted job openings a week and a half ago, and today, ten days later, we have 60,000 applications for 5,000 jobs. I think that speaks to the excitement and the demand. We do hope that we will be part of the renaissance of travel. It's a difficult time for the travel and entertainment industries, and we believe we will be the biggest story in 2021 when we come out of this. We really want to give the travel industry in Las Vegas and the United States a boost. We hope to be that light at the end of the tunnel. When entertainment comes back to life, we will have the best entertainers in the world. When the club environment comes back alive, we will have the best DJs in the world. We feel very privileged to be in a position to serve as that small beacon.

Good question. When Scott asked me to join the team, he referenced that we only want to hire the best. We want to hire this group of Navy SEALs that works together cohesively as one unit and moves in the same direction. In your career, you only have a few opportunities to create that. Scott was able to create that and embrace it. All the individuals we have here truly are those Navy SEALs, best in class, best in the industry. That is needed to succeed. If you build a $4.3 billion project, you need the most responsible, experienced, and ambitious leaders. We believe we have a team of Navy SEALs that can do it all.

I really worked my way up. I chose a very traditional hospitality path out of Europe. I went to hotel management school. I was born into the industry; my father was a hotelier. It wasn't my choice, but I was born into it. My father asked me what I wanted to do, and I told him I wanted to make a lot of money. He said, 'Stay out of hotels.' But here I am. I chose a very traditional career path. I went to hotel management school in Berlin, spent three years there. I worked in the kitchen, stewarding, banquets, the front desk, as a parlor maid. Any discipline you can think of, I spent time in. That served as the foundation for my career because if you haven't made beds, worked as a steward in the kitchen, or prepared eggs at 4 AM, you just don't have an appreciation for what that is. Going through that for three years made me appreciate the craft of running a hospitality business. From there, I wanted to explore the world. I joined Mandarin Oriental in London as a rooms division trainee, then was transferred to the opening of Mandarin Oriental in New York in 2003. I spent four or five years there as an assistant front office manager, then worked in banquets for a year and a half. I transferred with Mandarin Oriental to Washington DC, spent two years there, did an executive MBA with the company. Then I came to Las Vegas to open CityCenter with Mandarin Oriental in 2009, progressed through the front office, became hotel manager at Mandarin Oriental. Thereafter, I joined The Venetian Palazzo Las Vegas Sands, spent four years as VP of Operations. A year and a half ago, Scott asked me to do this. Looking back at the steps that got me here, there were a couple of key principles. Number one, I always wanted to work for the best management teams, the best brands, in the most challenging destinations, in environments that command very high rates because when you can charge high rates, there is an expectation from the guest that you have to deliver upon, which is very high. That was one of my key philosophies. Number two, it was never about the money for me. When I left New York and went to Washington DC as a front office manager, I took a 60% pay cut. I was married, my wife was not happy, but long term it was the right thing to do. Don't work for the money; the money will come eventually. It's about long-term career progression. Number three, it's personal development. You have to work on yourself. I did the executive MBA, came to the US, a foreign country with a different culture, not my mother tongue. That was always growth along my career. Now I feel privileged to be in this role where I can give back to the teams and share some of my experiences. We just launched a book club here on property. I have 46 leaders, we read a book together and talk about it. It challenges me to become a better professional and individual.

Number one, we will all come out of this stronger, better, faster. We will all be better leaders and managers. We will all have experiences that enriched our career. When you're in it and have to shut down a property or deal with putting out all these fires, it's never right, but you develop an ability to think in a different manner. Risk management is not something you can prepare for; you're thrown into it. You have to react, pivot, and move at a pace that is unprecedented. The principle of ready, aim, fire is kind of out the window over the last 12 months. It's fire, aim, fire, fire, fire, ready, fire. That's the pace we're moving at. But this shall pass, and we will come out of this. Our industry will stabilize. The individuals who were able to grow through all of this and consolidate will emerge as much stronger leaders, and opportunities will be presented to those who excelled in this environment. Opportunities are limited right now, but they will become plentiful when things get back to normal. The night always gets darkest just before sunrise, and I think we're there. January and February might become really dark months, but come March and April with the arrival of the vaccination being widely available, we anticipate stabilization and a sense of normalcy to come back in June or July. If that's the case and demand comes back, occupancy and rates come back, there will be a fight for top talent. The individuals who have excelled in this can really leapfrog others who stagnated or didn't adjust to this new reality. Some of the principles we are now embracing regarding guest safety, team member safety, and community involvement won't go away. If you think we get back to 2019 and that will be the world we go back to, that's not the case. Guest safety, team member safety, and community involvement will never go away. If you can embrace that and run with it, you're extremely well positioned to have a fantastic and flourishing career in the coming years.

I don't know what Batista means. I hope it's a positive one.

As long as it's not gorilla or elephant, I'm fine with that.

Okay, all right. I'm a sucker for brands. I have great respect for brands. To build a strong brand, so much goes into that. I've worked for some great brands, so I have admiration and respect for brands that have succeeded. Zouk is recognized as the number one nightlife operator out of Asia, and that's an incredible accomplishment. The pedigree of the brand, the traditions, and the longevity—there is no nightlife brand in the United States that has that longevity that Zouk has. I think it's over 30 years of continuous operation, which is incredibly impressive. I have nothing but respect for this brand and great admiration. I'm super excited to bring it here to Las Vegas. We've had a couple of DJs on site, toured them on property, and they're extremely excited for Resorts World and for Zouk. Some of them have performed at your locations in Asia, and when they heard we're coming here, they wanted to talk to us. That speaks to the brand. The challenge for us is how we can take a brand like Zouk and translate it into Las Vegas, how we can make sure we bring in talent that supports the brand foundations, and how we can support you and your team in providing a future outlook for Zouk. We will be one stepping stone for this brand. This brand has a bright future, so we have to make sure we contribute to it and continue to cement the legacy you have built over the last three decades.

Oh yeah, it'll be incredible. With some of the designs, I hope you can show some of them here. It has this Balinese influence design, and it's stunning. It has a beautiful DJ booth with a massive background that is overwhelming. The audio experience will be second to none, the visual experience will be second to none. The pool experience leading up to the DJ is incredible. The cabanas will have the latest technology and offerings. We have good-looking waitstaff as well that will complement the whole space. Ron and the team are designing a uniform program that you will have to come and see when you travel to Las Vegas, because it will be one of the best-looking and sexiest uniform programs in the city. Holistically, we're creating an experience that you will have to come and see for yourself. We'll be able to cater to your entry-level and general access consumer, but also to your very high-end consumer. Ultimately, DJs perform all over the world and have seen all venues. When we presented to some of the DJs, they were super excited to be playing here. I have no doubt it will be an all-around success.

We are a very tech-forward property. When we look into the world of hospitality, there aren't too many hotels, casinos, or entertainment operators that do technology really well. What we firmly believe is that the service experience for those who choose should live on your personal smartphone. You should have the ability to check in on your phone, have your mobile key on your phone, order pillows to your room, make restaurant reservations, and communicate any need through your phone. In addition, you should be able to order food or beverages from anywhere anytime on your phone. We really embraced the residential room service approach. When you're sitting in your house and want to order Thai, you pick up your phone and order Thai. If you want Italian, you do that on your phone as well. We will create that same experience here. The traditional room service experience is still there for certain consumers, but the majority will gravitate towards a mobile platform. We're augmenting a technology component to the traditional service experience. In addition, we've embraced The Boring Company, an Elon Musk company. It's an underground transportation system with Teslas flying through tunnels. You'll be able to get in a Tesla here on property and get to the convention center in less than 45 seconds. During a big convention, it might take 20 to 30 minutes to get there, so now you'll be able to get there faster in an electric vehicle, which is futuristic and will cost a fraction of normal transportation. That speaks to our sense of innovation, risk-taking, and entrepreneurialism. We're the first private entity to ever sign on with The Boring Company tunnel. Those are the technology enhancements and thought process that will be deployed. When it comes to the traditional service experience, wherever we deliver a traditional service experience that isn't tech-enhanced, it needs to be authentic and best in class. When we consider our food and beverage offering, we'll have 40 of them. Some are brands you will be very familiar with. We're looking to bring in the best chefs in the world, and some may not be three-star Michelin chefs out of big destinations. Some might be food hawkers out of Singapore or Hong Kong, where we bring them in and they do two or three dishes, but those dishes are the most authentic and best in class you can have anywhere in the world. That's how we think about food and beverage and the overall service experience on property.

It's interesting right now. We work hard. To your listeners and those working in our industry, our work is a lifestyle. If you don't enjoy what you do and you work 60 hours, I wouldn't wish that on anybody. I really enjoy what I do. I surround myself with a team that I admire and look up to. Everybody on my team, I feel privileged to work with. Creating that positive work environment is key to success. Then you have to find a balance. Similar to you, I like to hit the gym and lift weights. I think you probably lift a lot heavier than I do.

That is one outlet. I love the outdoors. I love to get away. I have a small group of friends, and we go scrambling, borderline rock climbing. We go to the very edge of where you need a helmet and a rope, and that's usually where we stop. That's really good to disconnect. For any young professional, find something that when you are doing it, you are 100% focused on the activity. For me, it's this rock climbing and scrambling environment. When I'm in there, I'm 100% focused, and that's almost like meditating because I have no time to think about work or any problems. When I come out of a six or seven-hour hike, I'm completely refreshed, creative again, and have a lot more energy. On top of that, I read quite a bit. I always read at least one management literature, The Economist, and then something fun as a distraction. Reading is key to success.

That's right. What people don't realize about Las Vegas is that we have so many national parks surrounding us. Especially the northern national parks in Utah, between Zion and Bryce Canyon and the Arches, and obviously the Grand Canyon, are incredible. The next time you're in Vegas, I'll take you out and we'll do some of those fun hikes.

Thank you, Joe. Hopefully we'll have you here for the opening.

That's right. Well, Joe, thank you for the opportunity. I'll have more than a spare room for you when you get here, and maybe one or two glasses of champagne as well.

You as well. Thank you.