After MGM Mirage’s scaling back of its City centre casino, another Vegas conglomerate is delaying its expansion plans. Harrah’s says that it plans to delay the opening of a new hotel tower at Caesars Palace.
The 660-room tower slated to open this summer supposed to be part of a billion-dollar expansion, including new meeting and convention space and three swimming pools.
Harrah’s plans to go ahead with other parts of the expansion but will wait on adding the additional hotel rooms for which there isn’t currently much demand.
Las Vegas Sun: While demand for the convention space remains high in spite of the downturn, hotel demand has suffered in this economy, Harrah’s spokesman Gary Thompson said.
With additional hotel rooms opening in the next few months “it was not prudent to bring this to market,” Thompson said. “We have not had the advance bookings we anticipated for those rooms,” he said.
Harrah’s has a tight balance sheet because it was taken private last year with billions of dollars in debt. The company, like many others, has been cutting costs and shaving staff. Still, financing for the $1 billion expansion was in place before the credit markets collapsed.
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