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Signature Sales Propel Progress at CityCenter

LAS VEGAS – It's no wonder MGM Mirage is plowing ahead with its $7 billion Project CityCenter at the center of the Strip. At its nearby Signature at MGM Grand, hotel-condominium units sold out for an average $788 per square foot in the first tower and $940 in the second tower. Plus, three-quarters of the units in the third tower have sold at a breathtaking $1,033 per square foot, MGM Resorts President John Redmond said. "Project CityCenter is more compelling after each sale," he said.

Smaller operators say high-rise condominium project cancellations and delays show it's getting harder to make a buck on the Strip. These operators feel squeezed by the rapidly increasing cost of land, rising construction costs, increases in interest rates and delays in the permitting process. All of these factors have contributed to recent cancellations and slowed some projects more than expected, including Wild Wild West, the Tropicana and Echelon Place, analysts say.

Some insiders point to Wynn Las Vegas as evidence of it being harder to turn a buck on the Strip. While the megaresort is chugging along with the largest cash flow -- earnings before interest, depreciation, taxes and appreciation -- in Strip history ($73.2 million in its first full quarter of operation) and the most per room, some analysts wonder how it's stacking up for investors. Per billion invested, it comes at $27.1 million, well behind $40.6 million from the Bellagio for its first quarter (1998) and $28.6 million for MGM Grand (1993). Still, it handily beats The Venetian ($18.3 million in cash flow, $6,053 per room and $12.2 million per $1 billion invested).

Despite a continuing tide of red ink, Donald Trump said he wants to have a casino up and running in Las Vegas before the end of 2010. Trump Entertainment Resorts already is building an ultraluxury condominium project across from Fashion Show mall. The Donald also said he's chasing the dream of operating in Macau and possibly in Rhode Island. "We are looking at a lot of areas, including Las Vegas," he said.

Boyd Gaming Corp. Chairman Bill Boyd breaks the mold. Though he lives and works in an industry and city not known for their generous philanthropy, Boyd recently won kudos in the national media for his generosity. The Chronicle of Philanthropy named Boyd, alone among Las Vegas and gaming executives, as one of the biggest donors in the country. They cited his gift of $25 million to University of Nevada, Las Vegas for its law school, and gifts to the Las Vegas Performing Arts Center, Boys & Girls Clubs of Las Vegas and Henderson Boys & Girls Clubs.

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