The global economic crisis (tm) is hammering Las Vegas hard. Each week it seems there is another announcement of a proposed hotel, a major renovation, or a big expansion being put on hold or cancelled outright.
We were supposed to be entering the next big wave of Las Vegas development, with tens of thousands of new hotel rooms slated to open in the next decade, but not only has the economy killed most of that, it could be causing a fundamental change in the long-term future of Vegas.
For years, casino companies created growth by building something new, turning The Strip into what one gaming executive called a "Casino Arms Race." But troubled times may be changing attitudes and it could result in a significantly fewer construction cranes hovering over the Las Vegas Strip for years to come.
Here is the status of the projects that were supposed to be coming to Sin City:
Sure Bets
Encore is the sequel to Wynn Las Vegas and it is on track to open in early 2009. Genius casino operator Steve Wynn timed things well, getting all of his financing and construction ducks in a row long before the economy went south so this one will open as planned. How the ultra-luxury, very expensive hotel will perform once it opens is an entirely different question.
The $9 billion CityCenter project has had a few financial hiccups in its outrageously expensive quest toward opening, but this one will open on schedule in late 2009. Filling the more than 7,000 rooms may be a challenge but they have more than a year to hope for a rebound in the national economy.
The new Octavius tower at Caesars Palace will definitely open next year as planned. It will add 600 rooms, a wedding chapel, and more.
Definitely with an Asterisk
Fontainebleau is proceeding as planned, rising high in the sky just north of The Riviera. It's 4,000 rooms and 100,000-square-foot casino are still on track to open in late 2009 but there have been rumors that the parent company behind this project is struggling. So while I think this one will open, I wouldn't be surprised to hear about a delay in the timetable.
M Resort is under construction on the far south side of town along Interstate 15. It too is set for a late 2009 debut and everything seems to be all-systems-go, but this is another project that seems vulnerable to the economic downturn, especially since it will be dependent on locals and traffic from Southern California, two groups that aren't going to casinos as often as they used to.
The condos at Planet Hollywood are rapidly approaching completion and I'm confident they will open as planned in 2009. But is anyone buying condos these days? Especially expensive ones right on the Las Vegas Strip?
The massive expansion at the Hard Rock is continuing apace, with new rooms, more casino space, new restaurants and entertainment venues, and more all still scheduled to be open by late 2009 or early 2010. But the parent company of the resort recently dropped out of the Echelon project citing financial concerns, so while I think the Hard Rock's future is secure, it still deserves an asterisk.
Question Marks
Construction on the $5 billion Stardust replacement called Echelon was halted earlier this year and the company in charge of the project has said that it won't start again until 2010 at the earliest. Since partners that were to contribute a couple of boutique hotels and a mall have dropped out, there are rumors that the partially constructed hotel may have to be at least partially de-constructed once a new plan is figured out.
Proving that the economic turmoil is a global problem, Israeli based Elad Properties is being vague at best about when they will move forward on their plans to build a $5 billion version of New York's famed Plaza hotel on the land once occupied by The Frontier. 2010 is rumored as being the absolute earliest that construction will begin but there are more rumors afoot that it could be even later than that.
The $3 billion Cosmopolitan hotel and casino under construction next door to Bellagio went through foreclosure a couple of months ago, and the exact details about who will manage the property are still uncertain. That hasn't stopped crews from working on it, but whether or not it will open in late 2009 or early 2010 as currently planned is highly questionable.
Steve Wynn's next big part of his master plan was going to be building a massive convention center and hotel complex on the land currently occupied by the golf course, with construction to begin as early as 2009. While the project will most likely get built eventually, the timetable is now in doubt.
The new owner of The Sahara had promised a top-to-bottom renovation of the property but nothing has happened yet. While some are questioning whether it ever will, I think this is one that has legs - it just might be awhile before we see any movement.
The Union Park development of 60 acres adjacent to Downtown Las Vegas is still in the planning phases but I think a lot of the specifics - like a major hotel-casino and several other boutique hotels and entertainment venues - are questionable.
In Limbo
Harrah's was going to unveil a master plan for its Strip casinos that could've involved tearing down at least two of them (maybe more) and major overhauls of the rest. We'll probably be waiting awhile for that unveiling so the Imperial Palace, Bill's, and Bally's are safe for awhile.
Also on hold (perhaps permanently) from Harrah’s is a plan to build a big sporting and event arena behind Bally’s that could’ve hosted a major-league hockey team.
Mandalay Bay had planned to build a condo tower in front of the main hotel. That project is on hold.
The partially constructed St. Regis condo tower in front of The Venetian will remain partially constructed for now. The project has been put on hold indefinitely.
A partnership to build a major hotel-casino complex on the empty lot across from The Sahara between MGM Mirage and South African company Kerzner International has been shelved.
Durango Station was going to be the next locals' joint from Station Casinos, set to start construction on the southwest side of town next year. The pause button has been pushed on this one.
Plans to build a second tower at Trump International have been put on hold.
The reopening of the Lady Lucky in Downtown Las Vegas is reportedly in jeopardy.
Just about every hotel company in town has said that they are cancelling or dramatically scaling back ALL of their plans to renovate or remodel their existing hotels. In other words, they hope you like the room decor now because it's going to be staying that way for awhile.
Not Happening
Plans to tear down most of the Tropicana and build a 10,000 room replacement have been cancelled.
A couple of companies were going to build an Elvis Presley themed resort next to Planet Hollywood. That project is dead.
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