Tuesday, October 26, 2010

St. Regis at Palazzo Capped at 5 Floors?

A recent Reuters article announced that the Venetian and Palazzo will join the portfolio of InterContinental Hotels Group. The group is best known for their Holiday Inn and Crowne Plaza brands. By joining forces with InterContinental Venetian and Palazzo will become part of the Priority Club program, which has 52 million members.

While this is a nice development for the Las Vegas Sands properties, there was another item in the article that caught my eye.

It appears that the Sands agreement to build St. Regis-branded condos in front of the Palazzo is close to expiring. Given the state of the Las Vegas condo market it's clear that LVS won't be building any condos if they don't have to. COO Michael Leven revealed that the building might be capped at the current five stories. "We might finish it off there to get rid of the eyesore."

If the building is completed at five stories I wonder what they will use that space for. There is already a Walgreens on the ground level, and five floors probably isn't enough to be a separate hotel tower. Perhaps they will just complete the outside until they figure out what they want to do, similar to the Octavius tower at Caesars.

Story: Reuters.