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Financial crisis around the world in luxurious hotel & condo projects

January 19th, 2009 · 2 Comments

These are tumultuous time for the mega real estate projects around the world. The luxurious market is highly affected with the current recession and some of the best developers have no choice but to put on hold construction for the next year.

Nakheel Tower

In Dubai, Nakheel announced they were halting construction of the Nakheel Harbour & Tower, a 38.12 billion project that will take 10 years to complete. Nakheel also stopped work on the $790 million Trump Tower last month.

MGM Mirage and Infinity World Development are downsizing the scope of their 9.2 billion CityCenter project on the Las Vegas Strip as the gaming sector faces a weak hand. They will postpone the opening of the 400-room Harmon Hotel & Spa to late 2011 representing savings of $200 million and cancel the residential condominium component (savings of $600 million).

Ritz-Carlton-Vancouver

The recession is also hitting closer to home in Vancouver where work stopped, last October, on Holborn Group’s Ritz-Carlton hotel and condo tower. The cost of the project was estimated at $500 million and the hotel is no longer showing on the Ritz Carlton website under new opening. The Jameson House condo project is also on hold since November. Key lenders backed out of the 180-million architectural icon by Foster.

Let’s monitor the market and hopefully 2010 will bring better news.  There are still many hotel openings coming up and I will make sure to keep you updated!

Tags: Real Estate

2 responses so far ↓

  • 1 Christopher Spear // Jan 20, 2009 at 7:34 am

    Hoteliers will need to concentrate on filling the rooms they have versus stealing share from new rooms coming on board. It’s going to be an interesting time. But we can do it! “Yes, we will!”

  • 2 Luxury // Oct 16, 2009 at 5:29 am

    Crisis usually hit the less powerful spenders but this time overall the world the recession hit hard and deep and we are seeing luxury objects and services sector downsizing. Think about luxury boats 50% down, this is a sector usually unaffected by crisis. No surprise luxury hotels are one of many casualties but as for other businesses they are trying to cope and even taking chances where possible to emerge even stronger.