Travel Agent - September 15, 2008 - (Page 31)

the rights. Details on this have been sketchy at best, but the Las Vegas CVB’s most recent construction report has Hyatt listed as a name on the project. Deutsche Bank has taken possession of the property because it is owed more than $900 million on the project, which is a couple of years behind schedule and only half built. One project that has evaporated is a massive expansion of the Tropicana Las Vegas. With an estimated cost of $2 billion, the plan was to reinvent the resort as it increased the room count to a staggering 10,000 rooms. However, owners Columbia Sussex have lost their gaming license to operate the Tropicana in Atlantic City, causing the entire company to essentially implode. It’s unlikely this project will move forward. In visits to the property, we have repeatedly been told by staff that they were not confident in management’s ability to properly run the Las Vegas property, let alone recreate the entire resort. Book a night with FAME. Lagging Projects Other projects have been put on indefinite hold, such as The Plaza, a $5 billion offshoot of the New York City icon from Elad IDB Las Vegas LLC, a partnership between the Elad Group and IDB Group of Israel. This resort was to feature 4,100 hotel rooms and 2,600 resort condominium units, as well as a 175,900-square-foot casino, and more than a million square feet of space devoted to dining, entertainment and shopping. Though spokespeople insist the project will see shovels in the ground sometime in 2009, the company deferred payment on a $625 million loan, which was used with additional cash to buy the site for a record price of $35 million per acre, the highest ever fetched for land in Las Vegas. Totaling $1.25 billion, the 2007 purchase significantly raised the price per acre of land on the Strip from $17 million just the year prior. The 56-year-old Sahara hasn’t gotten much ink lately. Sam Nazarian bought the property for $300 million in 2007, with hopes of turning it into a hot spot for young partiers on a budget. The mogul already has street cred from creating nightclub and restaurant concepts in Los Angeles that have attracted such gossip column staples as Paris Hilton and Lindsay Lohan. Nazarian has already freshened up some of the property with more than $2 million in changes, but rumors persist that he’ll do a total makeover, which would include the construction of a new hotel tower. But whether he can meet a self-imposed deadline of 2011 remains to be seen, as construction financing in the hotel industry and especially for Las Vegas has all but evaporated. In the short term, there are still numerous resort openings that have already secured the necessary funding to continue construction and stay on schedule. Encore, the latest venture from Steve Wynn, is set to open later this year at a cost of $2.3 billion. It will feature more than 2,000 suites. Coming in 2009 is the $2.9 billion, 3,900-room Fontainebleau Las Vegas. Also opening will be the $1 billion M Resort, which held a topping-off ceremony at the end of August. Other funded projects in the works include a $1.2 billion tower at Planet Hollywood and a $1 billion Caesars Palace expansion. Overall, the softening demand that’s at the root of the real estate struggles in Las Vegas is good news for travel agents. Room prices are plummeting and value add-ons are on the rise. I Planet Hollywood Resort & Casino is the shopping, dining, and gambling destination of choice for the city that celebrates celebrity. Celebrity has found its worldwide headquarters in the center of the Las Vegas Strip. Plus, your clients will get the star treatment when you book with US Airways Vacations, the Vegas Experts. CONNECTING YOU For the latest information on Las Vegas developments, visit www.travel agentcentral.com/las-vegas Visit usairwaysvacations.com/planethollywood or call 800-455-0123 today © 2008 US Airways, Inc. USV08-1024 Interested? Request #011. September 15, 2008 TravelAgent | 31 http://www.usairwaysvacations.com/planethollywood http://www.usairwaysvacations.com/planethollywood http://www.travelagentcentral.com/las-vegas http://www.travelagentcentral.com/las-vegas

Table of Contents Feed for the Digital Edition of Travel Agent - September 15, 2008

Travel Agent - September 15, 2008 Online Now Contents Agent Insider From the Editor Hawaii Europe Pacific/Asia Las Vegas US Airways Vacations - Atlantis, Paradise Island Specialist Central & South America Mexico Caribbean Cruises Cover Story: Merge Mania France by Rail Weddings & Honeymoons Gay & Lesbian Travel Tours Agent Profile Triptailor Vacations Agenda: Fam Trips, Deals & Incentives, Calendar Vegas Week Insights on Singapore Travel Leaders Builds New Alliances The Latest from the Caribbean A Sneak Peek at a New Ship Classified Marketplace In the Spotlight Editorial Index Advertising Index Trendwatch Special Supplement: Thailand Travel Planner

Travel Agent - September 15, 2008

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