As the recession has made people think twice about gambling away their increasingly valuable savings, it’s also made Vegas developers reconsider how they spend their money.
MGM Mirage, like all casino companies, has been hurt by the downturn and isn’t expected to have a great 2009, so it’s trying to cut costs by scaling back its real-estate development.
WSJ: The gambling giant said it will delay the opening of the 400-room Harmon Hotel & Spa by one year until 2010 and cancel 200 residential units it planned to build there.
The changes will shave $200 million from City centre’s cost. The company had previously announced that design changes to the project would save $400 million, reducing the total budget to $8.6 billion from $9.2 billion.
MGM Mirage owns City centre with Infinity World Development Corp., a subsidiary of Dubai World, a major investment arm of the Persian Gulf state of Dubai.
The companies said the rest of City centre — which includes a 4,000-room hotel and casino, a Mandarin Oriental hotel, two condo towers, a condo-hotel and a retail complex — will open as planned in late 2009.
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