Jim Murren - speaking on the most recent MGM Resorts International earnings conference call gave some thoughts about what the never-opened Harmon Hotel land could become:
"For those of you who are out here, or are going visit soon you'll note, which is happy news for us - that Bobby Baldwin has finished deconstructing the nightmare that was The Harmon.
That allows us to spend really constructive time to develop ideas of what would maximize that two-plus acres parcel right on the corner of the Strip. And clearly, though we're not ready to explain all of the ideas we have, you'd have to believe that an expansion of Crystals is the overarching use of that property, and there could be others.
Crystals itself is an extraordinarily valuable asset, we've discussed it on prior calls, and don't think that we've lost sight of that. We believe it not only is more valuable today than it was even last quarter, but we believe with a growth plan it would be more valuable still going forward."
Showing posts with label CityCenter. Show all posts
Showing posts with label CityCenter. Show all posts
Thursday, September 03, 2015
Saturday, August 22, 2015
Harmon and Cosmopolitan 2009 Construction Photos
I was going through some old Las Vegas photos and came across these from 2009 which I think might be interesting to the Las Vegas fanatics out there.
The first photo shows the ill-fated Harmon Hotel being constructed. The tower was deemed unsafe because of construction flaws and ultimately had to be dismantled piece by piece.
The second photo shows Cosmopolitan under construction, along with a pre-remodeled Bill's Gamblin' Hall which would later become The Cromwell.
The first photo shows the ill-fated Harmon Hotel being constructed. The tower was deemed unsafe because of construction flaws and ultimately had to be dismantled piece by piece.
The second photo shows Cosmopolitan under construction, along with a pre-remodeled Bill's Gamblin' Hall which would later become The Cromwell.
Friday, August 21, 2015
Update on Stalled Construction Projects
Four years ago I wrote a blog post about stalled and abandoned Las Vegas construction projects. I thought it would be fun to go back and see what has happened to those projects:
- Fontainebleau - sold to Carl Icahn and is essentially abandoned.
- Echelon - sold to Genting Group and will be built into Resorts World.
- St. Regis tower at Palazzo - Still unfinished. A building wrap was installed to hide the construction. Las Vegas Sands has talked about doing something with it, but that hasn't happened yet.
- Harmon Hotel at CityCenter - The tower was deconstructed. The Crystals mall will likely expand into that space.
- The Shops at Summerlin - Developed by the Howard Hughes Corporation it was re-branded as Downtown Summerlin and is open with a multitude of retail and dining establishments.
- Wyndham Desert Blue timeshare across from Rio - Work resumed in 2013 and the project was finished. It's a nice looking building.
- ManhattanWest - The project was purchased for pennies on the dollar and construction resumed in 2013. It was renamed The Gramercy and is now open with upscale residential, retail, and office space.
- Vantage Lofts - opened in spring 2014 as Vantage Luxury Flats and Loft Living.
- Mercer - The project was purchased by a developer who plans to open it in the first quarter of 2017. They kept the name Mercer.
I couldn't find any updates on Parkline Lofts, Spanish View Towers, or Uptown. I'm assuming they're still stalled and/or abandoned.
- Fontainebleau - sold to Carl Icahn and is essentially abandoned.
- Echelon - sold to Genting Group and will be built into Resorts World.
- St. Regis tower at Palazzo - Still unfinished. A building wrap was installed to hide the construction. Las Vegas Sands has talked about doing something with it, but that hasn't happened yet.
- Harmon Hotel at CityCenter - The tower was deconstructed. The Crystals mall will likely expand into that space.
- The Shops at Summerlin - Developed by the Howard Hughes Corporation it was re-branded as Downtown Summerlin and is open with a multitude of retail and dining establishments.
- Wyndham Desert Blue timeshare across from Rio - Work resumed in 2013 and the project was finished. It's a nice looking building.
- ManhattanWest - The project was purchased for pennies on the dollar and construction resumed in 2013. It was renamed The Gramercy and is now open with upscale residential, retail, and office space.
- Vantage Lofts - opened in spring 2014 as Vantage Luxury Flats and Loft Living.
- Mercer - The project was purchased by a developer who plans to open it in the first quarter of 2017. They kept the name Mercer.
I couldn't find any updates on Parkline Lofts, Spanish View Towers, or Uptown. I'm assuming they're still stalled and/or abandoned.
Monday, August 04, 2014
The Harmon is being Dismantled
The never-opened Harmon Hotel at CityCenter is finally coming down.
The tower was deemed unsafe because of construction flaws discovered in 2008. In 2010 I speculated the building would be imploded. Then in 2011 MGM made it official by submitting an implosion plan to Clark County.
For the next three years the building's fate was held up in the court room, as MGM sought approval to take the building down.
Ultimately it was determined that a piece-by-piece dismantling would be safer than an implosion. Recently the progress has become visible, as the glass windows are being removed.
The deconstruction is expected to be complete in the summer of 2015. MGM hasn't announced what they're going to do once the demolition is complete. I've always thought that space could be used as a grand entrance way to CityCenter and Aria.
The tower was deemed unsafe because of construction flaws discovered in 2008. In 2010 I speculated the building would be imploded. Then in 2011 MGM made it official by submitting an implosion plan to Clark County.
For the next three years the building's fate was held up in the court room, as MGM sought approval to take the building down.
Ultimately it was determined that a piece-by-piece dismantling would be safer than an implosion. Recently the progress has become visible, as the glass windows are being removed.
The deconstruction is expected to be complete in the summer of 2015. MGM hasn't announced what they're going to do once the demolition is complete. I've always thought that space could be used as a grand entrance way to CityCenter and Aria.
Wednesday, February 20, 2013
Parts of CityCenter could be For Sale
MGM Resorts International would consider selling off parts of CityCenter in order to reduce the project's huge debt load.
During MGM's earnings call this morning, CEO Jim Murren said the Crystals mall was particularly attractive for a possible sale, and even mentioned that the shopping complex was built with a plan to sell it off eventually. Not sure I'm buying that part.
The company isn't going to sell Aria, but would be also be open to take offers on the non-gaming Vdara and Mandarin Oriental hotels.
The biggest downside I can think of with selling Crystals would be MGM's loss of that part of the Strip and the ability to funnel people back to Aria. On the other hand they are building a huge Aria marquee that should help with that, and I assume the eventual buyer of Crystals would have some kind of agreement to be Aria pedestrian friendly.
During MGM's earnings call this morning, CEO Jim Murren said the Crystals mall was particularly attractive for a possible sale, and even mentioned that the shopping complex was built with a plan to sell it off eventually. Not sure I'm buying that part.
The company isn't going to sell Aria, but would be also be open to take offers on the non-gaming Vdara and Mandarin Oriental hotels.
The biggest downside I can think of with selling Crystals would be MGM's loss of that part of the Strip and the ability to funnel people back to Aria. On the other hand they are building a huge Aria marquee that should help with that, and I assume the eventual buyer of Crystals would have some kind of agreement to be Aria pedestrian friendly.
Sunday, February 10, 2013
The Wedding Chapel at Aria
CityCenter has always needed a wedding chapel, and now its getting one.
The creatively named The Wedding Chapel at Aria is scheduled to open on April 23rd.
Much like CityCenter and Aria itself the chapel will try to shed the tackiness of the traditional Las Vegas wedding experience and transform it into a modern and upscale experience:
"Guests will enter the chapel through chrome, gated double doors backed by mahogany wood. Within the chapel lounge they will be greeted by a sense of natural light streaming through frosted glass windows etched with a blossoming tree. The stylish furniture, wrapped in sumptuous fabrics and set in comfortable arrangements, will create a contemporary, high-end residential feel. Inside the chapel, delicate live flowers weave their way up walls upholstered with infinity symbols to create a sense of romance and opulence."
I'm glad to see a wedding chapel at Aria. It's my opinion that every Las Vegas resort needs a wedding chapel, and I was a little dismayed when both Aria and Cosmopolitan opened without one. Cosmopolitan fixed that problem by opening their wedding chapel about a year ago, and now Aria will have one too.
Source: Aria Press Release.
The creatively named The Wedding Chapel at Aria is scheduled to open on April 23rd.
Much like CityCenter and Aria itself the chapel will try to shed the tackiness of the traditional Las Vegas wedding experience and transform it into a modern and upscale experience:
"Guests will enter the chapel through chrome, gated double doors backed by mahogany wood. Within the chapel lounge they will be greeted by a sense of natural light streaming through frosted glass windows etched with a blossoming tree. The stylish furniture, wrapped in sumptuous fabrics and set in comfortable arrangements, will create a contemporary, high-end residential feel. Inside the chapel, delicate live flowers weave their way up walls upholstered with infinity symbols to create a sense of romance and opulence."
I'm glad to see a wedding chapel at Aria. It's my opinion that every Las Vegas resort needs a wedding chapel, and I was a little dismayed when both Aria and Cosmopolitan opened without one. Cosmopolitan fixed that problem by opening their wedding chapel about a year ago, and now Aria will have one too.
Source: Aria Press Release.
Thursday, March 08, 2012
Zarkana to replace Viva Elvis
Viva Elvis at Aria will be closing in August and will be replaced by another Cirque du Soleil show - Zarkana.
Zarkana spent two successful summers at Radio City Music Hall in New York, and has also toured internationally with stops in Madrid and Moscow.
It's kind of sad to see Viva Elvis go so soon, but I have a feeling Zarkana will be a much better fit for Aria.
I always wondered why they would have a 50's themed show at an ultramodern hotel like Aria. They were obviously trying to capitalize on the success of the Beatles show Love, but it just didn't work out. I wonder how the Michael Jackson show at Mandalay Bay will fare.
Source: Cirque du Soleil Press Release.
Zarkana spent two successful summers at Radio City Music Hall in New York, and has also toured internationally with stops in Madrid and Moscow.
It's kind of sad to see Viva Elvis go so soon, but I have a feeling Zarkana will be a much better fit for Aria.
I always wondered why they would have a 50's themed show at an ultramodern hotel like Aria. They were obviously trying to capitalize on the success of the Beatles show Love, but it just didn't work out. I wonder how the Michael Jackson show at Mandalay Bay will fare.
Source: Cirque du Soleil Press Release.
Saturday, January 14, 2012
January Restaurant Roundup
A couple of restaurant tidbits have crossed the wire over the past couple of days.
The biggest news is probably the Gordon Ramsay restaurant rumored for Paris Las Vegas is actually happening. Robin Leach reported the Ramsay news way back in December 2010. A year went by without anything happening, but now there's an official press release stating that Gordon Ramsay Steak will be opening in the spring to replace the closed Les Artistes Steakhouse.
KJ Dim Sum & Seafood Chinese Restaurant is opening at Rio. Pulse of Vegas says they should be open in time for Chinese New Year, which is January 23rd. Las Vegas locals might be familiar with KJ's sister location in Chinatown, branded KJ Kitchen.
Lastly, Vegas Tripping is reporting that Union Restaurant at Aria is closing. It appears the restaurant might have suffered from service issues and was a tad overpriced.
The biggest news is probably the Gordon Ramsay restaurant rumored for Paris Las Vegas is actually happening. Robin Leach reported the Ramsay news way back in December 2010. A year went by without anything happening, but now there's an official press release stating that Gordon Ramsay Steak will be opening in the spring to replace the closed Les Artistes Steakhouse.
KJ Dim Sum & Seafood Chinese Restaurant is opening at Rio. Pulse of Vegas says they should be open in time for Chinese New Year, which is January 23rd. Las Vegas locals might be familiar with KJ's sister location in Chinatown, branded KJ Kitchen.
Lastly, Vegas Tripping is reporting that Union Restaurant at Aria is closing. It appears the restaurant might have suffered from service issues and was a tad overpriced.
Thursday, August 25, 2011
Veer Towers Wind Tunnel
Sportswriter Bill Barnwell of Grantland has recently moved to Las Vegas to write about living on the Strip for a year.
He is renting an apartment in the Veer Towers at CityCenter and recently wrote about a strange phenomenon that occurs when the wind blows at Veer:
"I was lucky to get a place in the West property that faces away from the sister tower — according to residents who live in the section of the East tower that faces west, the building is subject to a loud, sustained whistling noise that occurs any time the desert wind whips past the building. This sound makes living in the apartment impossible and forces MGM, who still owns the building, to put any resident who complains in the adjacent Vdara Hotel & Spa for a free stay. The estimate I heard for how many times this has happened in 2011 was in the mid-20s."
This is a relatively small problem that will go unnoticed by most Las Vegas visitors, but it still makes me scratch my head about CityCenter. Almost every building at the complex has had issues:
Aria: Visitors have complained that it's too far away from the Strip, and the main show Viva Elvis is already getting a makeover.
Vdara: The only restaurant closed back in March, and they also have the Vdara Sun Ray.
Crystals: Has been relatively trouble free aside from vistors complaining that it's an underwhelming shopping mall. Eve nightclub closed but that's not really their fault.
Harmon Hotel: Never opened and probably is going to be imploded, pending County approval.
Veer Towers: Wind Tunnel.
Mandarin Oriental: Is the big winner, as I can't think of any glaring issues.
He is renting an apartment in the Veer Towers at CityCenter and recently wrote about a strange phenomenon that occurs when the wind blows at Veer:
"I was lucky to get a place in the West property that faces away from the sister tower — according to residents who live in the section of the East tower that faces west, the building is subject to a loud, sustained whistling noise that occurs any time the desert wind whips past the building. This sound makes living in the apartment impossible and forces MGM, who still owns the building, to put any resident who complains in the adjacent Vdara Hotel & Spa for a free stay. The estimate I heard for how many times this has happened in 2011 was in the mid-20s."
This is a relatively small problem that will go unnoticed by most Las Vegas visitors, but it still makes me scratch my head about CityCenter. Almost every building at the complex has had issues:
Aria: Visitors have complained that it's too far away from the Strip, and the main show Viva Elvis is already getting a makeover.
Vdara: The only restaurant closed back in March, and they also have the Vdara Sun Ray.
Crystals: Has been relatively trouble free aside from vistors complaining that it's an underwhelming shopping mall. Eve nightclub closed but that's not really their fault.
Harmon Hotel: Never opened and probably is going to be imploded, pending County approval.
Veer Towers: Wind Tunnel.
Mandarin Oriental: Is the big winner, as I can't think of any glaring issues.
Monday, August 15, 2011
MGM to Implode Harmon Hotel Tower at CityCenter
News broke today that MGM Resorts International has submitted a plan to Clark County to demolish the Harmon hotel tower by implosion.
People have been speculating for almost a year now that the stalled CityCenter hotel would be demolished, but this is the most definitive statement yet that MGM has made regarding the project.
The unfinished Harmon Hotel at CityCenter Las Vegas:
It was previously thought the Harmon would sit untouched until the legal battle between MGM and Perini was over, but it looks like MGM wants to move right away with the implosion. It could happen as early as six months from now.
It's sad to see a brand new building be imploded, but this has to be done by MGM. One of the major flaws of CityCenter is the main resort - Aria (and the casino) is so far away from the Strip.
While they can't move Aria, imploding Harmon will allow them to construct a grand entrance-way to CityCenter, hopefully with moving walkways leading to Aria.
UPDATE: August 27, 2011.
This wasn't entirely unexpected, but it appears MGM will have to jump over a few hurdles before they are able to demolish the Harmon.
Clark County has asked for more detailed plans regarding the implosion, including details on how the Harmon would affect hotel room supply and demand in Las Vegas.
There are also safety concerns because the Harmon is located so close to Las Vegas Boulevard and surrounding hotels. The Strip would probably have to be shut down for the implosion.
Perhaps the biggest obstacle for MGM is the pending litigation between them and the builder, Perini Building Co. Perini still maintains that the flaws in the Harmon aren't that serious and could be fixed.
Check out this Vegas Inc article for more about the Harmon implosion obstacles.
People have been speculating for almost a year now that the stalled CityCenter hotel would be demolished, but this is the most definitive statement yet that MGM has made regarding the project.
The unfinished Harmon Hotel at CityCenter Las Vegas:
It was previously thought the Harmon would sit untouched until the legal battle between MGM and Perini was over, but it looks like MGM wants to move right away with the implosion. It could happen as early as six months from now.
It's sad to see a brand new building be imploded, but this has to be done by MGM. One of the major flaws of CityCenter is the main resort - Aria (and the casino) is so far away from the Strip.
While they can't move Aria, imploding Harmon will allow them to construct a grand entrance-way to CityCenter, hopefully with moving walkways leading to Aria.
UPDATE: August 27, 2011.
This wasn't entirely unexpected, but it appears MGM will have to jump over a few hurdles before they are able to demolish the Harmon.
Clark County has asked for more detailed plans regarding the implosion, including details on how the Harmon would affect hotel room supply and demand in Las Vegas.
There are also safety concerns because the Harmon is located so close to Las Vegas Boulevard and surrounding hotels. The Strip would probably have to be shut down for the implosion.
Perhaps the biggest obstacle for MGM is the pending litigation between them and the builder, Perini Building Co. Perini still maintains that the flaws in the Harmon aren't that serious and could be fixed.
Check out this Vegas Inc article for more about the Harmon implosion obstacles.
Friday, August 12, 2011
Which Las Vegas Hotel Imploded Next?
There's a blog post over at Vegas Tripping discussing which hotels are most likely to be imploded in Las Vegas.
I was thinking about it, and came up with these 5 hotels I think could be imploded in the near future:
Sahara - The hotel is already closed so step one is out of the way. Owner Sam Nazarian insists that he will be opening a re-branded Sahara in 2014, but most people agree that's never going to happen.
Harmon - Construction issues caused this never-opened CityCenter hotel to be capped at around 50% of its planned height. Repairing the building might be more trouble than it's worth.
Fontainebleau - Like the Harmon, this hotel might be taken down before it even opens. One of the tallest buildings in Vegas, the Font was left 70% complete when the owners ran out of money. Finishing the resort will cost well over a billion dollars, and nobody has that kind of money anymore. Another case where implosion would be cheaper than completion.
Hooters - The bankrupt hotel will continue operations for now, but if things get bad enough I wouldn't be surprised if it closed down eventually. Implosion would make room for a new Tropicana parking lot.
O'Sheas - This is a wild card because it won't be imploded, and isn't even a hotel. It will likely be de-themed and re-named for Project Linq though, which will effectively wipe it off the map.
A building that will never be imploded is the Jockey Club. Steve Friess had an interesting article in the Sun today about why the Jockey Club will live forever. The article mentioned Controlled Demolition Inc. (the company that does all of the Las Vegas implosions) already has a general plan of how to implode almost every hotel in Vegas. That's a scary thought.
I was thinking about it, and came up with these 5 hotels I think could be imploded in the near future:
Sahara - The hotel is already closed so step one is out of the way. Owner Sam Nazarian insists that he will be opening a re-branded Sahara in 2014, but most people agree that's never going to happen.
Harmon - Construction issues caused this never-opened CityCenter hotel to be capped at around 50% of its planned height. Repairing the building might be more trouble than it's worth.
Fontainebleau - Like the Harmon, this hotel might be taken down before it even opens. One of the tallest buildings in Vegas, the Font was left 70% complete when the owners ran out of money. Finishing the resort will cost well over a billion dollars, and nobody has that kind of money anymore. Another case where implosion would be cheaper than completion.
Hooters - The bankrupt hotel will continue operations for now, but if things get bad enough I wouldn't be surprised if it closed down eventually. Implosion would make room for a new Tropicana parking lot.
O'Sheas - This is a wild card because it won't be imploded, and isn't even a hotel. It will likely be de-themed and re-named for Project Linq though, which will effectively wipe it off the map.
A building that will never be imploded is the Jockey Club. Steve Friess had an interesting article in the Sun today about why the Jockey Club will live forever. The article mentioned Controlled Demolition Inc. (the company that does all of the Las Vegas implosions) already has a general plan of how to implode almost every hotel in Vegas. That's a scary thought.
Thursday, August 11, 2011
Viva Elvis Changes Coming in 2012
Viva Elvis, the Cirque du Soleil show at Aria will be closed temporarily in early 2012 to undergo some major changes. The show will be revamped to become less biographical and more acrobatic.
Viva Elvis will go dark in January 2012, with an expected re-opening at the end of the first quarter.
Part of the change will be incorporating performers from the Cirque show ZED, which was forced to closed after the Japan earthquake.
One of the biggest complaints about Viva Elvis was that it wasn't really a traditional Cirque show. Instead the show relied heavily on Elvis era dance numbers.
While Viva Elvis has received mixed reviews, I'm not sure making these changes will improve that. Some people might be happy with the added acrobatics, but Elvis fans are going to be upset that the show is going to be "less of a biographical representation of Elvis."
Source: Fox 5 Vegas.
Viva Elvis will go dark in January 2012, with an expected re-opening at the end of the first quarter.
Part of the change will be incorporating performers from the Cirque show ZED, which was forced to closed after the Japan earthquake.
One of the biggest complaints about Viva Elvis was that it wasn't really a traditional Cirque show. Instead the show relied heavily on Elvis era dance numbers.
While Viva Elvis has received mixed reviews, I'm not sure making these changes will improve that. Some people might be happy with the added acrobatics, but Elvis fans are going to be upset that the show is going to be "less of a biographical representation of Elvis."
Source: Fox 5 Vegas.
Wednesday, August 10, 2011
Beso taken over by Landry's Restaurants
Eva Longoria's financially troubled Beso restaurant has been taken over and will be bought out by Landry's Restaurants Inc.
Eva Longoria will remain as a partner in the restaurant. Landry's owner Tilman Fertitta issued a statement saying, "Eva created a landmark restaurant at the spectacular CityCenter, and I look forward to working with her as my partner in Beso."
Landry's is a large company which owns multiple chain restaurants. They also own the Golden Nugget casinos. Having the backing of a large company like that means Beso will be in business for a while.
Eve, the closed nightclub portion of the restaurant might even re-open as a result of the new ownership.
Source: Press Release.
Eva Longoria will remain as a partner in the restaurant. Landry's owner Tilman Fertitta issued a statement saying, "Eva created a landmark restaurant at the spectacular CityCenter, and I look forward to working with her as my partner in Beso."
Landry's is a large company which owns multiple chain restaurants. They also own the Golden Nugget casinos. Having the backing of a large company like that means Beso will be in business for a while.
Eve, the closed nightclub portion of the restaurant might even re-open as a result of the new ownership.
Source: Press Release.
Tuesday, August 09, 2011
Aria Occupancy hits 90%
MGM Resorts International has reported their second quarter results, and Aria has scored all time high occupancy and room rates for the second straight quarter. Occupancy hit 90% in the second quarter of 2011 while ADR increased $1 to $202.
At the other MGM properties second quarter occupancy was 94% with an ADR of $126, compared to occupancy of 93% and ADR of $115 in the same quarter last year.
Aria Occupancy and Average Daily Rate:
1Q 2010 - 63% - $194
2Q 2010 - 80% - $178
3Q 2010 - 82% - $175
4Q 2010 - 80% - $190
1Q 2011 - 86% - $201
2Q 2011 - 90% - $202
Source: MGM Resorts International.
At the other MGM properties second quarter occupancy was 94% with an ADR of $126, compared to occupancy of 93% and ADR of $115 in the same quarter last year.
Aria Occupancy and Average Daily Rate:
1Q 2010 - 63% - $194
2Q 2010 - 80% - $178
3Q 2010 - 82% - $175
4Q 2010 - 80% - $190
1Q 2011 - 86% - $201
2Q 2011 - 90% - $202
Source: MGM Resorts International.
Monday, July 18, 2011
CityCenter - Bad News for Eve and Harmon
Two recent bits of news about CityCenter surfaced in the past couple of days.
The stalled Harmon Hotel building has been deemed unsafe in the unlikely event of a major earthquake. The news is further proof that the Harmon likely will never open, and might be disassembled. MGM and Perini Corp. are battling in court over who's to blame for the debacle.
Eva Longoria's Eve Nightclub has closed, at least temporarily. The club at the Crystals shopping complex has faced financial difficulties from day one. Beso, the restaurant attached to the club will remain open.
The stalled Harmon Hotel building has been deemed unsafe in the unlikely event of a major earthquake. The news is further proof that the Harmon likely will never open, and might be disassembled. MGM and Perini Corp. are battling in court over who's to blame for the debacle.
Eva Longoria's Eve Nightclub has closed, at least temporarily. The club at the Crystals shopping complex has faced financial difficulties from day one. Beso, the restaurant attached to the club will remain open.
Monday, June 27, 2011
Stalled and Abandoned Las Vegas Construction Projects
Vegas Inc. had a story on Friday profiling stalled and abandoned construction projects in Las Vegas.
I was thinking about writing about stalled construction projects a few weeks ago, and these six immediately came to mind:
- Fontainebleau
- Echelon
- St. Regis tower at Palazzo
- Harmon Hotel at CityCenter
- The Shops at Summerlin
- Wyndham Blue across from Rio
The Vegas Inc. story also profiled some lesser known projects:
- ManhattanWest
- Mercer
- Parkline Lofts
- Spanish View Towers
- Uptown
- Vantage Lofts
We didn't really need any more evidence that the Las Vegas real estate market is struggling, but 12 stalled projects really hammers home the point.
UPDATE: August 21, 2015 - I wrote a blog post updating the status of these projects.
I was thinking about writing about stalled construction projects a few weeks ago, and these six immediately came to mind:
- Fontainebleau
- Echelon
- St. Regis tower at Palazzo
- Harmon Hotel at CityCenter
- The Shops at Summerlin
- Wyndham Blue across from Rio
The Vegas Inc. story also profiled some lesser known projects:
- ManhattanWest
- Mercer
- Parkline Lofts
- Spanish View Towers
- Uptown
- Vantage Lofts
We didn't really need any more evidence that the Las Vegas real estate market is struggling, but 12 stalled projects really hammers home the point.
UPDATE: August 21, 2015 - I wrote a blog post updating the status of these projects.
Tuesday, May 10, 2011
Aria Improves Occupancy and ADR in 2011
In the first quarter of 2011, Aria scored all time high occupancy and room rates. Occupancy was 86% with an average rate of $201.
I've been keeping an eye on Aria's occupancy rate since it opened. They started off slow with a low 63% occupancy in the first quarter of 2010, but the numbers have been improving slowly throughout 2010 and now into 2011.
Aria probably will never be the cash cow that MGM was hoping for when the project was conceived, but breaking the $200 room rate mark is a step in the right direction.
Room rates were higher across the board at MGM properties in the first quarter, so we might be looking at the start of a real economic recovery in Las Vegas.
Aria Occupancy and Average Daily Rate:
1Q 2010 - 63% - $194
2Q 2010 - 80% - $178
3Q 2010 - 82% - $175
4Q 2010 - 80% - $190
1Q 2011 - 86% - $201
Source: MGM Investor Relations.
I've been keeping an eye on Aria's occupancy rate since it opened. They started off slow with a low 63% occupancy in the first quarter of 2010, but the numbers have been improving slowly throughout 2010 and now into 2011.
Aria probably will never be the cash cow that MGM was hoping for when the project was conceived, but breaking the $200 room rate mark is a step in the right direction.
Room rates were higher across the board at MGM properties in the first quarter, so we might be looking at the start of a real economic recovery in Las Vegas.
Aria Occupancy and Average Daily Rate:
1Q 2010 - 63% - $194
2Q 2010 - 80% - $178
3Q 2010 - 82% - $175
4Q 2010 - 80% - $190
1Q 2011 - 86% - $201
Source: MGM Investor Relations.
Tuesday, February 15, 2011
Aria Finding its Niche?
After being open for slightly over a year, it looks like Aria has settled in and is beginning to find some success.
It was revealed in MGM's fourth quarter earnings conference call that occupancy at Aria was at 80% for the quarter. That number was actually down from 82% in the third quarter, but the average room rate went up from $175 to $190.
2011 is shaping up to be even better as CES, Chinese New Year and the Super Bowl were very successful for Las Vegas. The opening of Cosmopolitan has also proved to be beneficial for CityCenter, as foot traffic has increased.
It also appears that visitor reviews on travel websites have been a lot more positive than when Aria first opened. It looks like some of the service issues that plagued Aria have been remedied.
It will be interesting to see if Aria can increase occupancy while maintaining the $190 room rate and relatively high customer satisfaction.
It was revealed in MGM's fourth quarter earnings conference call that occupancy at Aria was at 80% for the quarter. That number was actually down from 82% in the third quarter, but the average room rate went up from $175 to $190.
2011 is shaping up to be even better as CES, Chinese New Year and the Super Bowl were very successful for Las Vegas. The opening of Cosmopolitan has also proved to be beneficial for CityCenter, as foot traffic has increased.
It also appears that visitor reviews on travel websites have been a lot more positive than when Aria first opened. It looks like some of the service issues that plagued Aria have been remedied.
It will be interesting to see if Aria can increase occupancy while maintaining the $190 room rate and relatively high customer satisfaction.
Monday, February 14, 2011
Vdara Loses Restaurant - Gains Grocery Store
Silk Road, the only restaurant at Vdara will be closing in March. Despite pretty good reviews and a cool layout the restaurant never really got off the ground. As good as it might have been Vdara is just a bad location, out of the way for anyone not staying at the property. The fact that they weren't even open for dinner couldn't have helped things. A quick glance at Yelp shows that many people liked Silk Road, although there seemed to be some service issues, including one person reporting they were made to sit at the bar because they were wearing a short sleeve shirt. I'm not sure why a struggling breakfast joint would enforce a dress code that strictly.
In semi-related news, Vdara will be getting a grocery store. Market Café Vdara will open March 1st. It's not exactly clear what the store will offer, but I'm guessing it will be a convenience store with small grocery items and various sundries. When CityCenter was touted as a possible permanent residence for condo owners, talk of a grocery store was one of the selling points. Even though most of the condos remain unsold, a grocery store is a nice perk to the owners and hotel guests alike.
In semi-related news, Vdara will be getting a grocery store. Market Café Vdara will open March 1st. It's not exactly clear what the store will offer, but I'm guessing it will be a convenience store with small grocery items and various sundries. When CityCenter was touted as a possible permanent residence for condo owners, talk of a grocery store was one of the selling points. Even though most of the condos remain unsold, a grocery store is a nice perk to the owners and hotel guests alike.
Tuesday, January 18, 2011
Aria TV Commercial - The Center of Attraction
Aria has a new TV commercial. It shows a couple doing a variety of things, including:
- Checking into the hotel.
- Playing a little roulette.
- Dining at what looks to be a private restaurant.
- Dancing and walking around the property including through the pocket park.
- Setting a bar on fire.
- Swimming in the pool in the middle of the night with their clothes on.
I don't think you're really allowed to do those last two things. The commercial finishes with a few exterior shots of the hotel and a narrator says "The center of attraction has shifted. Aria Resort and Casino at CityCenter Las Vegas."
The song is "Coleen" by The Heavy.
I like this commercial. It shows people having fun at Aria, which isn't something I've seen in previous marketing efforts from them. Even though the commercial is unrealistic with the couple having the hotel to themselves and doing some things that are against the rules, it still makes Aria look like a place to be.
If they were looking to compete with the highly successful Cosmopolitan commercial, I think they did a good job.
Rumor has it the commercial will play during the SAG Awards on January 30th.
UPDATE: April 4, 2011.
I saw this commercial on TV today. It appears they have changed the ending slightly. Instead of saying "The center of attraction has shifted," it now says "The center of Las Vegas has shifted." There's also a graphic on the screen with the new tagline. I'm guessing that some viewers of the first version of the commercial didn't realize this was a Las Vegas hotel.
- Checking into the hotel.
- Playing a little roulette.
- Dining at what looks to be a private restaurant.
- Dancing and walking around the property including through the pocket park.
- Setting a bar on fire.
- Swimming in the pool in the middle of the night with their clothes on.
I don't think you're really allowed to do those last two things. The commercial finishes with a few exterior shots of the hotel and a narrator says "The center of attraction has shifted. Aria Resort and Casino at CityCenter Las Vegas."
The song is "Coleen" by The Heavy.
I like this commercial. It shows people having fun at Aria, which isn't something I've seen in previous marketing efforts from them. Even though the commercial is unrealistic with the couple having the hotel to themselves and doing some things that are against the rules, it still makes Aria look like a place to be.
If they were looking to compete with the highly successful Cosmopolitan commercial, I think they did a good job.
Rumor has it the commercial will play during the SAG Awards on January 30th.
UPDATE: April 4, 2011.
I saw this commercial on TV today. It appears they have changed the ending slightly. Instead of saying "The center of attraction has shifted," it now says "The center of Las Vegas has shifted." There's also a graphic on the screen with the new tagline. I'm guessing that some viewers of the first version of the commercial didn't realize this was a Las Vegas hotel.
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