On Thursday I got a sneak preview of Lavo at Palazzo. I was physically sick and tired and not really in the mood to enjoy myself or really appreciate the place. I tell you this to put in context how impressed I was by Lavo. I  was there not out of desire but because of deadlines.

Lavo right now is a subject of intense interest for two reasons. The first is why I was there: Lavo is the first expansion in Vegas from the group of men who created and own the wildly successful Tao restaurant/nightclub at the Venetian. Meanwhile, nightclub competitors Pure Management Group and Light Group have grown by opening new nightclubs and restaurants at a rapid clip on the Strip. Except for Tao Beach, another success, in this context, the decision by Tao's owners to hold back on opening any new venues in Vegas is notable; and then there is the fact they have decided to do so now, especially in this economy.

Success in Vegas almost inevitably leads to rapid expansion. Here is a comparison. About a year ago, in talking to Pure managing partner Robert Frey, off the top of his head, he could not tell me exactly how many places PMG then ran on the Strip, and the company has existed for only a few years. Light Group is named after a club that is now gone. Around New Year's weekend, Light Group opened the high-end nightclub Bank in the original club's former Bellagio location. That is how the company handles the old spaces. The Light Group's latest restaurant, Yellowtail, just opened at Bellagio. And, with an equity investment to fuel future expansion from oil-rich Dubai, the continued growth of Light Group seems assured. Yellowtail is also included in the story that brought me to Lavo last night, the next Buffet print column (for Calendar on Sept. 14) touring the highlights of the latest fall offerings on the Strip.

But Lavo is also of interest for another reason. The venue has been the subject of litigation with Palazzo and Venetian parent company Sands (owned and run by Vegas mogul Sheldon Adelson). The argument at the heart of the litigation is a complex landlord/tenant dispute. But the mystery, as I have noted, is why Adelson would want to play hardball with the company that put Tao in the Venetian and has finally agreed to expand into his new property rather than into a competitor. "Yes, we have had a lot of offers over the years," one of Tao's owners told me once. "But we are interested not in growth for growing but only if we find the right space, and there are very few spaces on the Strip that are perfect. And the space has to be perfect."  With Tao, the choice of space paid off in every way. The nightclub has remained a celebrity magnet while the restaurant claims to be the largest money-earning eatery in the country.

Until opening Lavo, Tao has been the only independent operator that could compete on an equal footing against the two top-tier clubs run by the big operators: LAX (PMG) and Bank (Light Group). Because Tao is the rare Vegas success story that hasn't pursued perpetual expansion, the Venetian has benefited greatly from the exclusivity of having Vegas' only Tao-run club, restaurant and day club.

Change is another thing. I asked when the design of Lavo would be finished, and I was told that one of Tao's owners recently brought back a new item for the older club. So every club will have perpetual change. But Lavo's initial design is not yet completely installed and the grand opening is not set until Sept. 13. (The restaurant and nightclub have soft opened while final touches and service kinks are worked out.)

Finding Lavo was difficult because The Palazzo has not put up any signs that offer any hint of the club's existence -- a huge problem when searching for a small venue in a gigantic building. Lavo and Palazzo have a seemingly schizophrenic relationship, with court actions and no signs but cooperation in other ways: The resort offered shout-outs for Lavo's opening announcement press release from Rob Goldstein, president of The Palazzo and The Venetian:

 

"From its inception our goal was to build a resort that offers customers a unique and compelling entertainment and retail experience. We are excited for Lavo restaurant and nightclub to join the other great attractions at The Palazzo like Cut, 'Jersey Boys' and Barneys and many others.”

 

Also, Lavo co-owner Jason Strauss told me they were getting cooperation from the Palazzo on their grand opening. Yet, none of the three or so Palazzo employees I spoke to was willing or able to point me in Lavo's direction. I ended up getting directions from an employee of another tenant store. Very odd. But this is a short-term problem, assuming Lavo remains in control of the space, as Lavo has a great location with a highly visible terrace near entrances. And I am sure the tremendous buzz the place already has will only grow as more people see the space.

 

I was totally and unexpectedly overwhelmed by Lavo's quality. Strauss gave me a tour. He describes the underlying philosophy: "When we open a space, we want the place to tell story." This is less a narrative story than a fanciful assembled theme, but it still is created with complexity and detail (if not historical accuracy). Lavo is heavily dedicated to its Roman/Mediterranean bathhouse theme. For example, even the bathrooms in the restaurant use sinks operated by foot pedal where the water falls from the ceiling into individual basins that you place your hands deep inside.

But Lavo has not been built in a vacuum, and Tao's owners have clearly spent time checking out the competition. Touches that can be found at other Vegas post-Tao nightclubs and restaurants abound. What Strauss calls "voyeur models" who bathe and do other sexy nonverbal performances around the room reminds one of Cathouse at Luxor where women appear behind glass as they act out preparing their make-up. And the nightclub upstairs is filled with furniture you can dance on and no roped-off VIP section in a similar style to Prive at Planet Hollywood. But in every case Lavo has added original touches like shower handles above the booths that both keep with the theme of the bathhouse and serve as handgrips for those dancing where they should sit.

 

The nightclub was not open when I was there. But I had a tour and then ordered food to check out the restaurant. The design, again, is amazing -- from the tiles to the walls, everything connects to the theme. Strauss emphasized in our interview how much effort went into sight lines, and this too is obvious. Even standing on the stairs has a glass plane to create a view. The lighting, low furniture and communal food menu (favoring small dishes and finger foods like chicken parmigiano sliders to be split among diners) helps create a very relaxed and social ambience. I am not very sensitive to design. I have been to the openings of more than 100 new nightclubs and restaurants in Vegas, yet this was the first time I have been so impressed by the look and feel of a place from the outset.

Of course, Lavo is over-the-top Vegas extravagance: the balcony, for example, contains not only a great view of the Strip but also a range of hookahs for smoking in keeping with the Mediterranian theme. I watched a hookah master prepare the coals in a swirling and showy ritual. But there is also a comfort, informality and functionality to Lavo that seems just as key to the appeal. There is no equivalent at LAX, Bank or even Tao.If I ever go on a first date again before I die, this is where I am taking her. Yet this intimacy perfect for a first date can also be brushed aside for a see-and-be-seen night of partying. It is a difficult balance. Lavo promises to be the sort of creation that Vegas is best at: extreme luxury, gaudiness almost as art, yet maintaining a mass appeal (how else do you fill a place every week?) for an atmosphere that breathes exclusivity while somehow making this populism seem an elitist experience. (Photos by Sarah Gerke)