Two Way Hard Three | Las Vegas Casino & Design Blog

Steve Friess picked up on the news from Wachovia that Elad is putting the Plaza Las Vegas project on hold due to the challenging credit market:

Very interesting, especially coupled with the Cosmopolitan news. Friess apparently just did an interview with Steve Wynn where the casino mogul predicted this.

Update: Elad, the developer, is denying the report so at this point this is in question.

Thanks Hail2Skins!


Read archived comments (9 so far)
March 17, 2008 5:51 PM Posted by DavidF

While I don't have a doubt this has mainly been caused by the current state of the financial markets, I also wonder if its also due in part to the cool reception of the New York Plaza during the Soft opening.

Any thoughts as to any other projects which are going to have problems? IMHO anything scheduled for opening outside of next 12 months, with the exception of CityCenter, has got to be in Danger of being held back...

March 17, 2008 5:51 PM Posted by BrianFey

Wow, I really thought those guys had more money than God, I guess not. This isn't all that bad of news. This just means more business for Wynn, and I think we were getting to many rooms coming at once anyhow. I do hate this for Perini, they were close to landing the project I heard. That and the Cosmo problems, along with this terrible stock market have sent their stock reeling, but I still think its a very good buy at these levels.

March 17, 2008 6:18 PM Posted by John

I might agree with that statement, David, but there are only three major projects, including City Center, under construction that will open outside of the next twelve months. In my opinion, Boyd has the ability the finish at least phase one of Echelon. In addition to that, I highly doubt that Fontainebleau will be putting a halt, or at least a hold, on construction due to the fact that the project is probably about 35% complete. Now, does this mean that a project like Fontainebleau is going to be successful once completed? I don't know. We know that the resort has a large residential component, but we don't know how that will factor into the success of the resort, aside from the initial sales of the units themselves. In all honesty, it's going to be very interesting to see what happens.

In terms of other projects, I highly doubt that the Kerzner/MGM JV will progress much during this financial crisis, due to the same factors that have put the Plaza on hold. I also have my doubts about LVS' proposed additions, as well as what Wynn has planned for the golf course, because of the fact that there is little or no need for the addition of that many more hotel rooms and/or condos, which I doubt we will ever see gain the popularity they had a few years ago, at this period in time.

March 17, 2008 6:49 PM Posted by hail2skins

Elad is denying the report.

March 17, 2008 7:03 PM Posted by Hunter

Well, the Clark County agenda is set in advance so I wouldn't read its presence there into this either way... Though it does sound like perhaps this isn't true and was just an over enthusiastic analyst.

I'm sure if they do want to put it on hold we'll know tomorrow based on the outcome of the development meeting.

March 17, 2008 7:10 PM Posted by BrianFey

Never trust an analyst! I've always said that!

March 20, 2008 5:57 AM Posted by detroit1051

2:53 p.m. March 19, 2008
LAS VEGAS � Clark County commissioners have given final approval to plans for a $6 billion Las Vegas Strip casino resort modeled after The Plaza Hotel in New York.
There was no mention during a brief public presentation by representatives of Elad IDB of reports earlier this week that the project was stalling due to a shaky credit market.
On Monday, Elad chief Miki Naftali said the project was �forging ahead as planned.�
Elad also owns The Plaza in New York.
A Las Vegas-based spokesman for the company says groundbreaking could take place later this year on the 3,500-room Las Vegas Strip project.
It's slated to open in 2011.

March 20, 2008 8:32 AM Posted by Mike T

Apparently the project is up to 4,100 rooms now.

From the Sun:
The Clark County Commission today approved permits for the Plaza, which submitted plans for seven high-rise towers including 4,100 hotel rooms, 2,600 condominium units, a 175,900 square-foot casino, 134,500 square feet of restaurant space, 347,887 square feet of retail, 539,607 square feet of convention space, a 50,000 square-foot health club, a 1,500-seat theater and 227,038 square feet of rooftop space for pools and other amenities.

July 21, 2008 5:56 PM Posted by anon

It is officially on hold indefinitely.