Friday, August 27, 2010

Dubai World might Sell CityCenter Stake

Dubai World, the 50% owner of CityCenter might be looking to sell its share of the property. According to a Reuters report, the company has shown a willingness to sell off core strategic assets in order to reach a re-structuring deal with creditors.

Dubai World paid $2.2 billion for a 5.9 percent stake in MGM in October 2007 and $4.8 billion for an investment in CityCenter. Those investments are now worth a fraction of what they paid. Their stake in City Center is probably worth about a billion dollars now, while their shares of MGM are worth even less than that.

While this news technically means that 50% of CityCenter is on the selling block, in reality it is unlikely a deal will be done anytime soon. Critics are saying that the sale of assets is unlikely and is only being talked about to appease creditors. Even if Dubai World was serious about selling CityCenter I doubt there would be any buyers in this market.

Source: Reuters.

Thursday, August 26, 2010

Cosmopolitan Partners with Marriott

Cosmopolitan has partnered with Marriott International. Cosmo will become part of Marriott's Autograph Collection. These hotels are not owned or operated by Marriott but provide the hotel access to Marriott's customers through their booking engine and rewards program. In turn Marriott will get a cut of the hotel revenues, they will not however get any of the gambling revenue at Cosmo. Most of the Autograph Collection hotels are small, boutique places - Cosmopolitan will be the largest hotel in the Autograph Collection.

This certainly seems like a mutually beneficial partnership. Marriott gets access to a prime hotel on the strip, while Cosmo gets access to Marriott's massive customer base and booking engine.

Source: AP.

Monday, August 23, 2010

Lady Luck Renovation Plan Approved

Las Vegas city officials have approved plans for the renovation of the closed Lady Luck Hotel.

This brings the hotel one step closer to re-opening, which is scheduled to occur in 2012. I am still in a "Believe it when I see it" mode when it comes to this project, but construction work is reportedly going to start immediately so if that happens I'll be convinced that the plans are legit.

Source: Fox 5 News.