Monday, October 04, 2010

Fontainebleau is Dead - For Now

In a sign that the Fontainebleau project is dead for now, owner Carl Ichan held a garage sale of sorts, selling off assets from the hotel. Beds, chairs, couches, lamps, door moldings and just about anything else that wasn't nailed down was sold recently to the highest bidder at auction.

I'm wondering why a hotel that was so far away from completion would have so much furniture. It seems that installing room furniture would be the very last step in completing a hotel, but apparently everything was ordered and ready to go via subcontractors when the project went bankrupt.

I guess this proves that Ichan never really had any intention to complete the Font, and is just biding his time until he can flip the property for a profit. My prediction is that two years from now the strip will be almost fully recovered and Ichan will unload the blue elephant for about $300 million which translates into a 100% return on his investment. Not a bad deal.

I still think that the property will open someday, but that date is getting pushed further and further back. I'm personally looking forward to a Fontainebleau / Echelon double grand opening party in December 2015.

Source: NY Post.