Dubai World and MGM Mirage have high hopes for CityCenter

Calcutta News.Net
Saturday 6th March, 2010

Dubai World’s joint venture partner in the CityCenter complex of Las Vegas, MGM Mirage is anticipating the $8.5billion resort will provide a much needed boost to the company’s bottom line.

Through it subsidiary Infinity World, Dubai World owns 50% of CityCenter which opened late last year amid slumping revenues, high unemployment and foreclosures all around the gambling city. Despite restructuring a $22 billion debt, Dubai World also took a 9.5% stake in MGM Mirage in 2007.

Chief Executive of MGM Mirage, Jim Murren commented that “despite the economic turmoil that we have seen, we remain ever more confident that CityCenter will be not only an extraordinarily profitable enterprise for our company and out partner, but it has forever changer the dynamic here in Las Vegas and the competitiveness of our company.”

The 27 hectare Las Vegas Strip resort contains a Cirque du Soleil, Elvis show, 2,400 condominiums and luxury non-gaming hotels including the Mandarin Oriental. Considered the showpiece of CityCenter, the 4,004 room Aria gaming resort which opened mid December earned an operating income of $7million in its first 15 days of operations.

The resort also boasts a 46,450 square metre retail and entertainment district and a $40million fine art collection.

The largest, single privately-funded development in US history has over 12,000 staff employed.,
“This is going to have a positive impact on the city and certainly it is going to have a very positive impact on us.”

“We have seen the worst of the downturn. Make no mistake we don’t expect a rapid recovery here. The environment remains challenging and is going to remain so for some time to come, but we see light at the end of the tunnel” said Mr Murren.

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