Caesars Palace's new Octavius Tower is nearly completion and the Las Vegas Sun has a preview of the rooms. Designed during the pre-downturn heyday, they are going for the "boutique" hotel look that is so popular this days with the acommpanying prices, of course. The only problem, which is the same that MGM faces with City Center, is that the debt load taken on to build these super sweet top of the line rooms will not be able to be supported by the cash coming in the door. The days of the casino subsidizing thier insane construction budgets with $300 meals are over and they certainly wont be able to get away with $500 a night to pay the bills. The new 665 room tower with some additional convention space and restaurants cost a billion dollars. By comparison, the new Eastside Cannery tha opened in August was build from the ground up for a quarter of that.
The bottom line is that while all of the new luxury rooms built in the past few years are certainly nice, they cost way too much to build. Sadly, I think there may be a bankruptcy or two in the near future due to the crushing debt load some of these companies have taken on, Harrah's and MGM Mirage in particular. Upside is that when it happens, the winner will be the Vegas visitor who will be able to experience the best of Vegas at reasonable prices once again.
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