Dubai World postpones Las Vegas hotel

by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 08 January 2009

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PULL OUT: Las Vegas CityCenter's residential complex has been hit by money saving measures. (Getty Images)

A major Dubai investment holding company has been forced to pull out of the construction of a residential complex in Las Vegas, as part of cost saving measures, it announced Thursday.

The Harman residential complex, which is part of the CityCenter complex in Las Vegas, is being developed by Las Vegas-based CityCenter Holdings, a joint venture between MGM Mirage and Dubai World subsidiary Infinity World.

The venture is also postponing the opening of The Harmon Hotel and Spa to late 2010, allowing it to defer $200 million construction costs to complete the interior fit-out of the hotel.

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The company hopes to achieve cost savings of 2.2 billion dirhams ($600 million), it said in a statement, as reported by UAE daily Emirates Business 24/7 on Thursday.

"This is an appropriate action in the current circumstances,” said Chris O'Donnell, chief executive officer of Infinity World Development Corporation, in the statement.

"We have full confidence in the long-term future of the Las Vegas market and the success of CityCenter.”

In October 2008, CityCenter secured a $1.8 billon senior bank credit facility, which can be increased to $3 billion.

"Both sponsors continue to actively pursue additional financing for the project," the statement said.

CityCenter Holdings is developing a 67-acre vertical city on the Las Vegas Strip.

Dubai World is a major investment holding company that wholly owns or has substantial interest in a portfolio of businesses and owns 50 percent of CityCenter through its affiliates Infinity World (Cayman) L.P. and Infinity World Investments LLC

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