Another delay for Las Vegas Plaza

Aug 19, 2008 7:00 PM

by Ray Poirier | Just how many more luxury hotel rooms can the Las Vegas Strip support? That’s the question being kicked around by potential developers Elad IDB Las Vegas LLC and its bankers.

Planned is a $5 billion multiuse ultra-luxury hotel, private residence, retail and gaming complex on the site of the former New Frontier Hotel/Casino that sits in front of the Trump condo building. To purchase the property from New Frontier owner, Larry Ruffin, the partnership of Elad and Israel-based IDB Group borrowed $625 million.

The property was to resemble The Plaza Hotel in New York City, another facility operated by the Elad IDB partnership.

But, just as others have found out recently, development money is difficult if not impossible to come by. So the Las Vegas Plaza has been put on hold, at least until 2009, according to a company statement.

Also being delayed is the repayment of the $625 million the partnership owes to Goldman Sachs Group and Credit Suisse Group.

Las Vegas Strip developments that got underway before the country’s banks went into a meltdown, places like the Palazzo by Las Vegas Sands, and Wynn Resorts Ltd.’s Encore, and even MGM MIRAGE’S CityCenter, beat the credit crunch. Others, however, have had to be scrapped, either temporarily or completely.