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Sunday, 15 March 2009

A Silver Lining for a Hotel Developer



EVEN in flush times, CityCenter was an ambitious undertaking. Sprawling over 67 acres on the Las Vegas Strip, it was to contain four hotels, one of them with more than 4,000 rooms, and hundreds of condominiums offering hotel services.

The owners — MGM Mirage, the publicly held casino operator, and Dubai World, an investment arm of the Dubai government — have together spent nearly $9 billion on CityCenter, which they hope to open by December.

But the demand for hotel rooms in Las Vegas has softened in the economic downturn, and MGM Mirage, which is controlled by the financier Kirk Kerkorian, is struggling to raise funds to complete the project. The company said in a recent filing with the Securities and Exchange Commission that it might default on some of its loans later this year.