Another huge Las Vegas Strip casino/hotel project is getting closer

Owning a casino on the Las Vegas Strip is a lot like buying a professional sports franchise. There are only a limited number and few make it to the open market,

Most of the properties on the famous 4.2-mile stretch of road are owned by Caesars Entertainment (CZR) – Get the report from Caesars Entertainment Inc. and MGM Resorts International (MGM) – Get the MGM Resorts International Report. These two giants each have an array of properties that allow them to serve everything from the top high roller to the person looking to do Las Vegas on a tight budget.

Until recently, Las Vegas was a city where new construction – at least for large-scale projects – was expensive and fraught with peril. Many new casinos have been announced, but few have been built.

Fontainebleau Las Vegas, for example, which has enjoyed an almost 20-year odyssey under multiple owners. Now appears on track to open in late 2023. Perhaps even more impressive is that Resorts World Las Vegas was built from the ground up and opened on the North Strip during the pandemic.

It’s become a Las Vegas arms race where a variety of players (including Hard Rock International who bought The Mirage from MGM) want a piece of the action. It’s pushed available land on the Strip to incredibly high prices and sparked interest from billionaires looking to make their mark on what may be the hottest real estate in the world.

Another billionaire wants a casino on the Las Vegas Strip

Tilman Fertitta, the billionaire who owns the NBA’s Houston Rockets as well as downtown Las Vegas’ casino, the Golden Nugget, has shut down a 6.2-acre lot on the Strip for $270 million. That’s $43 million per acre, according to an article in the Las Vegas Review-Journal.

A sometimes-reality TV star who made his fortune in the restaurant business, Fertitta has kept his plans for the Las Vegas Strip close to the waistcoat.

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“It could also lead to a landmark project by Fertitta on Las Vegas Boulevard, an ultra-competitive tourist corridor that regularly sees new development plans, albeit with a mixed track record of projects under construction,” Eli speculated. Segall from the newspaper.

The property currently houses retail businesses, including gift shops, as well as a tex-mex restaurant and a motel that is currently closed. Fertitta could build a casino on the property or opt for a luxury hotel without a casino.

The Las Vegas Strip is hot

Caesars and MGM have not been idle on the Strip as new players, including Fertitta, seek to settle in their territory. MGM didn’t just sell The Mirage, it also acquired Cosmopolitan.

“The Cosmopolitan is an iconic brand with a loyal and complementary customer base that will further enhance our Las Vegas Strip portfolio,” MGM CEO Bill Hornbuckle said at the company’s press conference. call for first quarter results.

Caesars also intends to sell its Flamingo property (although it may still end up operating it).

“Well, we’re at 23,000 rooms today. You remove Rio rooms and then you remove a property, depending on the property, say 3,000 to 4,000 rooms,” Caesars CEO Tom Reeg said during of the visit to his company. call for fourth quarter resultsin response to a question about selling property on the Strip.

Caesars is also working on rebranding its Ballys Casino to its player-friendly Horseshoe brand.

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