The world may have been reeling from the news that some of Dubai’s strongest financial institutions could not pay their debts, but this did not halt or slow down the opening of the Vegas CityCenter. The complex opened in December and is jointly owned by Dubai World and the MGM Mirage.
The CityCentre has had a mixed reaction with some praising it and some cursing it. With a staggering 4,004 rooms and a spanking new casino it is hope that tourists will come flooding back to the city. Some opinions are that the CityCenter has just introduced a glut of rooms to a market that is already over saturated and this might just in turn drive down the value of other rooms in the area. It is a large hotel and with it opening means that there is a 4% increase in the number of rooms available in Vegas, which is a big increase to happen overnight!
The CityCenter has cost a whopping 8.5 billion US Dollars to build and for many it is a bit of a last grasp at pulling the market back up for the ailing region. This is certainly a huge bet for not only Vegas but also Dubai. Due to the current recession a drop in visitors to the city has been seen, partly because people are not taking many holidays and also to avoid wasting money on gambling. This has meant big trouble in sin city as many casino companies did not foresee the coming recession.
At the end of last year Dubai hit the news for all the wrong reasons having announced a whopping 60 billion debt. Dubai World has said that it is seeking a 6 month delay with paying its creditors the colassal 60 billion that it currently owes. The emirate racked up the debt during its own real estate bubble that burst because of the global recession. The CityCenter project cost 8.5 billion US Dollars to build, but has been valued at a mere 4.88 billion US Dollars by external evaluators. This is one gamble that people are really crossing their fingers will pay off.