Harrah announced a 1 billion expansion plan at Caesars Palace. This project includes the addition of a new 23-storey hotel tower with 665 guestrooms called Octavius and 263 000 sq ft of meeting space. The Ceasars Palace, once completed in the spring of 2009, will offer from 3328 to 4013 rooms.
This is quite impressive considering the current financial crisis affecting hotel occupancy rates all around the world and also in Vegas. Occupancy was down with 88.3 % of rooms filled in August, down 2.9 % compared with August 2007. The privately held Harrah’s reported losses of $285.4 million for the first six months of 2008, compared with profits of $422.8 million in the first half of 2007.
Will The Caesars Palace need to hire back Celine Dion to fill up the hotel? Are there too many hotels in Vegas? Will the occupancy rate grow after the recession? I think it will! Otherwise the world’s top resort developers would not have bet on it! Like I said before… Viva Las Vegas!