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 huge complex was opened towards the end of last year and is owned by Dubai World and the MGM Mirage.
The CityCentre has had a mixed reaction with some praising it and some cursing it. The resort has 4,004 rooms and a new casino that many say will attract the tourists 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. It certainly is a big bet, a big bet for Vegas and a big bet for 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. Naturally this has meant big trouble in Vegas as a lot of their casino’s did not see the recession coming.
At the end of last year Dubai hit the news for all the wrong reasons having announced a whopping 60 billion debt. Dubai World said it would seek a six-month delay in paying creditors on the nearly 60 billion that it 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 bet that people are hoping will really pay off.