CityCenter Scales Back
When it came out last month that MGM sold the Treasure Island resort, partially to save the CityCenter development, it seemed trouble was in the offing. Now the AP is reporting that the project, which is the biggest new development on the Las Vegas Strip, is now being scaled back. MGM Mirage and Dubai World have delayed construction on one of the hotels in complex, the 400-room Harmon Hotel & Spa. There was also a plan for 200 residential units in the hotel which has now been canceled. So far 88 of those units were under contract and buyers will get their deposits back. The hotel is scheduled to open in 2010.
The move is part of a general economic slump in Las Vegas that started with the decline in the real estate market and has worked its way to the Las VegasStrip. MGM shares are down 80 percent over the past 12 months as casino revenues have continued to fall. The other parts of city center including the 4,000-room Aria casino, a Mandarin Oriental hotel and a sprawling retail and entertainment playground are scheduled to open in December 2009.