Maxim Magazine Expands to Casino and Hotel

Maxim Magazine hardly needs any introduction in most gentlemen’s circles.  Made famous for featuring Hollywood’s biggest starlets in the skimpiest outfits, Maxim is now expanding its reach further into the mature entertainment arena.  A Las Vegas hotel and casino will borrow the Maxim name in exchange for $1.2 billion dollars.  The licensing deal is being organized by an American based property developer.

Concord Wilshire Partners and Dennis Publishing have signed a deal to develop the Maxim Hotel & Casino.  The deal marks the latest brand extension the hotel and gaming industry has seen.  Concord Wilshire Partners, a real estate firm, is currently developing about $7 billion worth of properties.

The casino venue is scheduled to open in 2010, on the Las Vegas Strip.  Everything is being done on the large scale for this project; the casino will sprawl across 60,000 square feet and the hotel is made up of 2,300 rooms.  The amenities will include restaurants runs by celebrity chefs, luxury shops, a spa, and conference facilities.  The venue will also include the Maxim Lounge nightclub.  Rande Gerber and the magazine, have been developing a chain of Maxim Lounges.  Gerber developed Time Warner Centre’s Stone Rose in New York, he also happens to be married to Cindy Crawford.

Over 2.5 million readers subscribe and contribute to the financial success of Maxim magazine.  The casinos American partners are hoping to convert those faithful readers to steady and reoccurring patrons once the casino finally opens.

Although Dennis Publishing will not be investing a dollar in the project, they will make huge profits as long as the casino resort stands.  Concord Wilshire will pay Dennis Publishing a fee of about $5 million dollars upfront.  They will continue to receive a fee of no less than that amount each year.  In addition, they will receive a percentage of all food and drink sold and shop rental fees.

Maxim will have an extremely active part in developing the casino resort, according to the director of brand development at Dennis Publishing, Barry Pincus.  Pincus said Maxim will have so much creative control as to choose the architects and the resorts overall feel.  Maxim will even “[decide] how big the pools should be.”

Pincus stressed that the casino resort should reflect the flavor that made the magazine popular.  While being “sexy and flirtatious” the resort will also be “extremely tasteful”, after all, Maxim has female readers as well as male.  Pincus explained, “We get three million women readers every month, so what we do will appeal to both men and women.”

Of course Maxim will benefit from more than just licensing fees.  Pincus expects the casino venue to act as an advertising and sponsorship events showcase, all involving numerous celebrity visitors.

The Maxim Hotel & Casino will find itself battling among stiff competition in Las Vegas.  Rivals will consist of well established gaming giants like Caesar’s Palace and MGM.

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