Gambling giant MGM Mirage plans to build a new 4,000-room mega-resort and extensive urban development in the heart of the Las Vegas strip, a project that will dramatically change the landscape of the city's most important commercial hub.
MGM Mirage officials are calling the ambitious plan a "Project City Center" and believe it will help transform Las Vegas into a sophisticated, multidimensional city that rivals other major metropolitan areas.
Terry Lanni, Chairman and Chief Executive Officer of MGM Mirage Inc., said, "Our master plan represents a significant new direction for our city and our company."
The multibillion-dollar project includes three 400-room boutique hotels, about 550,000 square feet of retail stores, dining and entertainment venues, and 1,650 luxury condominium complexes.
The large-scale development will be built on a 66-acre site between Bellagio and Monte Carlo Hotel-Casino, with the first phase creating 12,000 jobs when completed in 2010.
MGM Mirage will select master architects and residential and hotel partners over the next 18 months.
Jim Murren, president and chief financial officer of MGM Mirage, said that once completed, it could be the largest private funding development in the United States.
With the announcement, MGM Mirage has solved the question of where to build the company's next most anticipated hotel casino. It discussed building a mega-resort in Atlantic City or Las Vegas due to its unprecedented popularity that has helped gambling companies make huge profits since 2003. The city is expected to surpass a record 37 million visitors this year. 릴게임
Gambling analysts were cautious about MGM Mirage's announcement scheduled for Wednesday.
"That's a complete exclusion for MGM," said John Mulkey, a gambling analyst at Bear Stearns in New York. "They've been more aggressive underwriters than developers in the past, but it certainly seems within their reach to be able to do something impressive on the land."
Like cities, MGM Mirage is about to undergo tremendous changes.
Lanni said plans for a $4.8 billion merger with Mandalay Resorts Group were underway with a target of the first quarter of 2005.
The deal is awaiting government approval and will create the world's second-largest gambling company, a title currently held by Harrah's Entertainment Inc.
MGM Mirage is the third largest resort in the project. Las Vegas Sands started construction at The Palazzo, a $1.6 billion hotel casino that is scheduled to open in 2007. The Palazzo is across from Wyn Las Vegas, Steve Wynn's latest gambling temple that cost $2.7 billion, and it will open on Apr. 28.
On Wednesday, MGM Mirage shares closed down 78 cents at $58.92 on the New York Stock Exchange. This was close to a high of their 52-week trading range of $34.05 to $60.07.
