Hot August Nights revs up revenue

War. 38 Special. America. Foghat.

The Hot August Nights premier concert lineup is a veritable hit parade of classic 1970s rock ‘n’ roll.

There’s no cost to attend the shows at the outdoor stage at Grand Sierra Resort, but booking those bands is an expense that runs upward of $500,000, said Deny Dotson, executive director of Hot August Nights. Rising costs to put on the event are one reason why HAN is making a push this year to increase its revenue from one of Northern Nevada’s largest special events.

Hot August Nights this year brought all apparel manufacturing in-house, so it can begin selling HAN-branded merchandise such as T-shirts, hats, keychains, model cars and coffee mugs year-round from its website. It’s also launching VIP seating areas across various hotel-casino venues to enhance the spectator experience.

“A good third of all our expenses is putting on entertainment at all the venues,” Dotson told NNBW in an interview at the HAN offices last week. “There’s no way we could have these free concerts without our sponsors.

“(VIP seating) will help us offset some of the increased costs we’ve seen over the last couple years for entertainment, staging, lighting, security and production. Things have gotten so expensive since COVID and with supply chain (disruptions). We were looking at how we can offer the same quality of show and try to break even.”

The VIP experience will feature exclusive seating areas similar to what’s done at other major special events such as Rib Village at the Nugget Rib Cookoff and The Branding Room at the Reno Rodeo. There’s been a VIP section at Grand Sierra Resort, called The Garage, for several years, but this year will also feature the VIP Burnout Bar at the Nugget drag races, as well as another VIP Garage in the Nugget’s east parking lot along the popular Victorian Avenue cruise (the site of Rib Village).

Costs are between $75 and $100 per person per night for the VIP areas and include beverages and snacks.

“At the Nugget you will be able to see the cruise and hear the music on Victorian Avenue,” Dotson said. “You get great seats, and you don’t have to put a lawn chair down at 6 in the morning to save your spot.”

In all, between 500 and 600 people per night could purchase the VIP experience, he added. The revenue will help offset ongoing production and operating expenses for Hot August Nights, which later this year will implement a new business management system to “increase efficiencies and get away from three-ring binders and file cabinets,” Dotson said.

“We are way past the need to improve our internal processes,” he said. “Now that apparel is being made in-house, we can host online sales all year round rather than just during the event.

“It’s going to be a great opportunity for us, but it won’t be easy. Anytime you change internally when you haven’t in a long time, there will be adjustments.”

Hot August Nights also puts on a swap meet at Livestock Events Center and the MAG Auctions car auction at the Reno-Sparks Convention Center. Hot August Nights rents out both facilities from the Reno-Sparks Convention and Visitors Authority and has management agreements with MAG Auctions and Turlock Swap to run those events.

“A lot of people don’t really realize the scope of Hot August Nights and how big it really is,” Dotson said.

The HAN offices on Greg Street are a full-time facility with a staff of six, who are supplemented by about 440 volunteers, Dotson added.

“That’s the only way we can do this business with our volunteer members,” he said. “It’s really broken down into 13 committees, everything from hospitality, check-in, drag races to entertainment. They all work seamlessly, and there’s a lot of experience on those committees.”

There are some other areas where Hot August Nights will benefit from managing key events during the weeklong classic car show. HAN ran the drag races at the Nugget for years, but the hotel-casino took it over for the past few years. This year, however, HAN will once again manage the event, meaning it receives revenue generated from food and beverage sales, as well as ticket sales since the drag races are one of the few HAN events that charge an admission.

Hot August Nights events are spread across town. Major casino properties host show-n-shine events and book their own entertainment. HAN registers 5,500 cars for the event, but several thousand more classic vehicles come to the event that aren’t registered, Dotson said. All event check-in takes place in the convention center at the Grand Sierra Resort. Participants receive a placard for a parking space at one of the hotel-casinos, as well as a gift bag that’s assembled by HAN staff.

James Herr, president of the Hot August Nights board of directors, said event registration is a tiered pricing structure, and any increases in revenue from HAN events helps keep registration prices stable.

“It’s adding value to the event and making the brand stronger,” Herr said.

Dotson, former executive director of the Virginia City Tourism Commission, started with HAN in October and immediately began looking at ways to increase brand awareness and boost revenues from Hot August Nights. The event’s economic impact on Greater Reno-Sparks is between $90 million and $100 million, Herr told NNBW. Hotel-casinos, meanwhile, enjoy their highest room rates for the year, and major resort properties are fully booked during the week of Hot August Nights, Herr added.

“There are a lot of new things happening this year, and I credit it to Deny,” Herr said. “He sees opportunity and jumps on it.”