The Walker Webcast: Jeffrey Soffer, Chairman and CEO of Fontainebleau Development

Date: December 18, 2025
Host: Willy Walker (Walker & Dunlop)
Guest: Jeffrey Soffer (Fontainebleau Development)

Overview

This episode of The Walker Webcast features a lively conversation between Willy Walker and Jeffrey Soffer, Chairman and CEO of Fontainebleau Development. The discussion covers the monumental scale and storied development of the new Fontainebleau Las Vegas, the shifting landscape of hospitality and commercial real estate, Soffer's vision as a developer, and trends in the Florida and broader luxury property markets. Listeners are treated to insights on leadership, evolving guest expectations, the art of curating luxury experiences, and the enduring appeal of best-in-class assets.

Key Themes & Discussion Points

The Scale and Complexity of Fontainebleau Las Vegas

[00:55 - 02:10]

• The Fontainebleau is a 9 million-square-foot resort, rivaling the combined size of Hudson Yards in New York.
• The resort includes every possible amenity and required a complex process of design and reimagining after being dormant for nearly a decade.
• The project weathered ownership changes and the financial crisis, with Soffer buying it back in 2021 and completing construction and hiring in just 30 months.
  • Quote: “This building is 9 million square feet... I would say it’s a lot easier building condos… designing every little area. So it definitely takes a lot of thought.” — Jeff Soffer [01:10]
  • Quote: “It sat for eight years... we had to reconceive a lot of areas and reimagine spaces... Did it all in 30 months... then had to hire 6,500 people.” — Jeff Soffer [01:59]

The Journey: Losing and Reacquiring the Project

[03:28 - 04:45]

• Soffer compartmentalized emotionally after being forced to let go during the crisis, focusing on other projects.
• The project was reacquired only with the right partner, highlighting the importance of relationships and timing in development.
• Retail is curated carefully, with an eye toward growth and securing the right tenants for long-term leases.
  • Quote: “I’m happy to put my money in, but I’m only doing it if I get the right partner.” — Jeff Soffer [03:50]

Revenue Streams in Modern Resorts

[05:27 - 09:10]

• Revenue now comes from a combination of gaming (~25%, down from 60% historically), rooms, food and beverage, conventions/groups, entertainment, and nightlife.
• Conventions and group bookings are crucial to midweek success; entertainment acts as a magnet for guests but isn’t a direct moneymaker.
• The slot and everyday gambler remains the heart of the business, despite the allure of high-rolling VIPs.
  • Quote: “Vegas traditionally... 60% gaming... Today, average hotel here is probably around 25% of the business comes from gaming. The city has transitioned.” — Jeff Soffer [05:58]
  • Quote: “The heart of it is the average person... you need those everyday people in there.” — Jeff Soffer [08:20]

Data, Loyalty, and Competitive Advantages

[09:10 - 11:13]

• Loyalty programs and data-driven marketing are key but challenging for privately held operators.
• Established players like MGM leverage vast databases to drive marketing and fill rooms; Fontainebleau is rapidly building its own.
  • Quote: “The loyalty thing is the biggest challenge… Our database is growing, but we’re obviously new. We’re going into our third year, so we’re starting to see the significant ramp.” — Jeff Soffer [09:17]

Soffer’s Visionary Approach to Real Estate

[11:13 - 15:10]

• Soffer identifies niches and bets on long-term asset quality.
• He prefers ‘build and hold’ over merchant-building, citing the enduring value of premium real estate.
• The ability to adapt to market needs, especially for integrated resorts with diverse amenities, is central to his approach.
  • Quote: “If you build good property, it will always be there… real estate is a test of time.” — Jeff Soffer [12:40]
  • Quote: “Those are things that you just can’t replace in good, good locations.” — Jeff Soffer [13:54]

The Fascination with Hospitality

[15:10 - 17:17]

• While the family started in mall development, Soffer is drawn to the integrated hospitality experience—large-scale resorts with multifaceted offerings and strong brands.
• The complexity and challenge of getting every element right is a key motivator.
  • Quote: “I like the big box space... integrated resorts... that can appeal to just more than a place to lay your head.” — Jeff Soffer [15:42]

Customer Service and Operational Excellence

[17:17 - 20:29]

• Private ownership enables fast decision-making and a relentless focus on service quality.
• Acquiring and retaining skilled staff, from frontline to executive, is a major focus, as is building guest loyalty.
• Success hinges on consistently delivering great guest experiences, especially to convert loyal players from other resorts.
  • Quote: “It’s important for me... the level of service, the quality of food, the experiences you have here.” — Jeff Soffer [17:53]

Market Segmentation and Trends

[20:29 - 23:49]

• The Fontainebleau aims for the high-end luxury segment, but is mindful of shifts in demand across economic strata.
• High-end resorts in Las Vegas and Miami continue to outperform, even as mid-market segments face headwinds.
• Ongoing investment in renovations and amenities is required to remain competitive—3% to 3.5% of gross revenues are annually reinvested.

Miami & South Florida: Market and Challenges

[22:50 - 26:51]

• Miami’s leisure market has softened (down 14%), but group bookings are strong; luxury residential supply is tight, driving price spikes.
• South Florida’s environmental challenges (flooding, hurricanes) are being mitigated through infrastructure investments like raised seawalls and pumps, though insurance costs remain a concern.
  • Quote: “Hurricane warning cost me a million dollars because people were coming, they’re canceling…” — Jeff Soffer [25:25]

Personal Anecdotes and Local Color

[27:28 - 29:56]

• Soffer shares stories of living next to Tom Brady and Jeff Bezos, and about creating the Hall of Excellence sports museum at Fontainebleau, displaying iconic memorabilia (e.g., Tom Brady's Super Bowl rings, Babe Ruth's bat).
  • Quote: “Tom’s like, look, I got all these rings and all this stuff... I don’t leave it in my closet... So we have all his rings... We just thought it’d be a cool attraction.” — Jeff Soffer [29:19]

Design and Creative Process

[30:07 - 31:56]

• The property was extensively redesigned from bare steel, with Soffer applying lessons learned over his career.
• Emphasis was placed on optimizing space for new uses over maximizing retail.

Events and Partnerships: F1, Discovery Land

[31:56 - 34:54]

• F1’s arrival in Las Vegas and ongoing partnerships (e.g., with Discovery Land in Florida) are seen as strong business drivers, particularly when logistics and event timings are designed to benefit hotels as well as the city.
  • Quote: “F1’s a great event for this town... There’s nobody here, you know, for Thanksgiving traveling...” — Jeff Soffer [32:06]

Relationships with Service Firms

[34:54 - 36:14]

• Soffer values loyalty, execution, and honesty in financial and service partners.
• Longstanding relationships and trust in delivery are key differentiators.
  • Quote: “I’m very loyal to the people that are good to me. So you guys have my business.” — Jeff Soffer [35:47]

The Future: Technology and AI

[37:05 - 38:09]

• Soffer is watching for operational efficiencies through AI, particularly around labor, which is the largest expense.
• He remains bullish on the enduring need for hospitality and vacation experiences, even as AI and technology may change other aspects of life.

Notable Quotes

• On Fontainebleau’s scale: “This building is 9 million square feet... It’s very complex and it takes a little bit of thought.” — Jeff Soffer [01:10]
• On vision and timing: “Good things come to those who wait.” — Jeff Soffer [09:17]
• On real estate: “If you build good property, it will always be there, and real estate is a test of time.” — Jeff Soffer [12:40]
• On the Miami market: “There’s just no supply. That's happened significantly in Dade County, and you see it in Palm Beach as well.” — Jeff Soffer [24:11]
• On loyalty in business relationships: “I'm very loyal to the people that are good to me. So you guys have my business.” — Jeff Soffer [35:47]

Timestamps for Key Topics

• 00:55–02:10: Scale, history, and complexity of Fontainebleau Las Vegas
• 03:28–04:45: Emotional detachment, reacquisition, and retail strategy
• 05:27–09:10: Resort revenue mix, changing gaming economics
• 09:10–11:13: Marketing, loyalty, and database challenges
• 12:01–15:10: Vision, build-and-hold philosophy, long-term asset value
• 15:10–17:17: Transition from family retail to hospitality focus
• 17:17–20:29: Service culture and employee engagement
• 20:29–23:49: Market segmentation, luxury trends, South Florida context
• 25:13–26:51: Environmental risks and mitigation in Miami
• 27:28–29:56: Neighbor anecdotes, Hall of Excellence creation
• 30:07–31:56: Design changes and creative reimagination
• 31:56–34:54: F1 and Discovery Land partnerships
• 34:54–36:14: Choosing, working with services/financing firms
• 37:05–38:09: Looking forward: AI, efficiency, hospitality’s future

Memorable Moments

• The inside story of reacquiring Fontainebleau post-crisis: “But my president partner... came to me one day and said, ‘hey, you want to buy this back?’”
• Description of the Hall of Excellence museum, packed with sports memorabilia and narrated by celebrity voices.
• Amusing neighbor talk with Tom Brady (“He bought my lot. He’s my friend...”) and Jeff Bezos (“I actually met his wife a few times. My sister is friends with him...”).

This episode provides an in-depth look at the vision, execution, and challenge of building and leading world-class hospitality properties, alongside broader real estate trends and business insights from one of the industry’s most influential figures.