by GT Staff | Despite a stagnant credit and capital market, the owners of the Hard Rock Hotel & Casino have announced theyve secured the financing to vastly expand the off-Strip property.
The financing consists of a construction loan of up to $620 million, according to Morgans Hotel Group, which, along with equity partner DLJ Merchant Banking Partners, purchased the Hard Rock earlier this year.
The estimated total cost of the expansion project is $760 million. M.J. Dean is doing most of the construction work.
"We are quickly moving forward to transform this legendary Las Vegas property," said Fred Kleisner, president and chief executive officer of Morgans Hotel Group. "Construction is under way and we have taken the steps to help ensure that the project is completed on time and on budget. With the expansion and other improvements to the existing facility, we are further enhancing Hard Rocks status as the one true boutique hotel in Las Vegas."
The Hard Rocks expansion project includes a new all-suite tower with 875 guest rooms, a 60,000-square-foot convention and meeting center and an additional 35,000 square feet of casino space.
The project also includes an expansion of the resorts pool area, several new restaurants and bars, and a new, larger "The Joint" concert hall. There will also be a new spa and gym and more retail shops.
Construction of the new facilities is expected to be completed in the second half of 2009.
Already completed are renovations and upgrades to existing hotel suites, a new Ago restaurant and the Wasted Space Lounge Bar.