MGM Mirage’s CityCenter Forges On
MGM Mirage (MGM: 11.10 0.00%) began taking bookings this week for parts of its CityCenter complex on the Las Vegas Strip. While construction on the entire project will not be complete for many months, the Vdara Hotel and the Aria Resort and Casino are both scheduled to open later this year.
Even as reservations are accepted at the two hotels, other parts of CityCenter are mired in controversy and financial difficulty. The Harmon Tower, in particular, has been troublesome, with reports of inspection failures and the reduction of floors to cut building costs.
Vdara will open October 1st, while Aria will take business starting December 16th. Room rates for the two range from $160 to $7500 nightly.
Any revenue that can be pumped out of CityCenter will be gratefully swallowed by MGM Mirage, which is facing a massive liquidity crisis largely due to CityCenter loans.
If CityCenter can be made to deliver anything close to its original projected income, MGM Mirage may not have to unload more casinos to raise cash, as it did with Treasure Island. But there is a year of stormy seas for the casino operator to cross before those revenues could be tapped.
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