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Las Vegas Crisis: One billion dollars for the Caesars Palace

October 22nd, 2008 · 3 Comments

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.

Gary Selesner, president of Caesars Palace, said “This is all about the future,” “We’re building our capacity for the turnaround that will come, whether it’s one, two or three years down the road.”

Caesars Palace

Also coming in late 2009 between Bellagio and Monte Carlo resorts is Las Vegas Citycenter developed by MGM Mirage & Dubai World valued at more than 9 billion dollars. More on this mega project later.

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!

Tags: Hotels & Resorts

3 responses so far ↓

  • 1 Las Vegas // Oct 23, 2008 at 10:06 am

    I think you are correct. The economy will sort itself out and rebound. Then Las Vegas will be the hot spot we have always known it to be. People are still visiting, just not in groves as usual. Things will change.

  • 2 Ellen Fields // Nov 19, 2008 at 3:25 pm

    that’s “droves”, not “groves” I believe….

  • 3 probesbel // Dec 20, 2010 at 12:00 am

    “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.”
    Are you sure that this is true?