Cosmopolitan may get $2B write-down

Sep 15, 2009 5:02 PM
Gaming Insider by Phil Hevener |

Analysts following the saga of the Cosmopolitan Resort are guessing that a write-down of some two billion may be upcoming by Deutsche Bank.

The project budget has so far topped $4 billion, according to estimates by outsiders who have had the occasion for close looks at what is happening there. This year’s expected write-off would lay the foundation for some interesting comparisons beginning late next year when the Cosmo is expected to be open.

Write-downs have already taken a big bite out of local resort values.

MGM MIRAGE has written off $188 million of the $200 million that it put into the Marnell family’s M Resort. And let’s see what may happen at the Las Vegas Fontainebleau project. It’s stalled for the moment as developers and prospective lenders argue about who owes what to whom.

Question? Comment? E-mail me at: Phil Hevener