Thursday, 5 August 2010

MGM Resorts’ Vegas venture slides - The National Newspaper

MGM Resorts International, one of the world’s biggest casino and hotel operators, said the value of its Las Vegas joint venture with Dubai World dropped for a third time, leading to US$883.5 million (Dh3.24 billion) in losses for the second quarter.

The company said the bigger than expected loss resulted from a $1.12bn reduction in its assessment of the CityCenter development in Las Vegas, which is yet to turn profitable since opening late last year amid a stagnant local property market and a fragile economic recovery in the US. The value of the complex on the Las Vegas strip, which includes residential units, hotels, retail space and a casino, is now about $2.65bn, said Dan D’Arrigo, the chief financial officer of MGM Resorts.

CityCenter cost about $8.5bn to build and is one of the largest privately financed construction projects ever in the US.

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