BluefoxToday blog : Cosmopolitan Las Vegas back in the spotlight

Cosmopolitan Las Vegas back in the spotlight

Just a week or so ago Cosmopolitan was the focus of discussions between Deutsche Bank, the current owner of the troubled resort, and MGM Mirage over the Las Vegas casino developer's potential involvement in managing it, possibly even becoming a part owner. These talks collapsed, though. But it didn't take long for a new party to emerge with a genuine interest in the project.  

Hilton Hotels Corp. is currently busy at work on plans to launch a new hotel brand called Denizen Hotels. The product is going to be conveniently modern with global appeal that is complimented with a local accent. "Each property will be smart in design, cultural in character and sensitive in service delivery," according to their website.

With that in mind, Denizen Hotels has its eye on the Cosmopolitan and would predictably rename it, hoist the Denizen name plate on the roof. At this point, the ownership structure appears to be wide open. Supposedly company executives have been working onsite for some time already and they are openly talking about their involvement. Cosmopolitan on the other hand stays tight-lipped about this scenario, although it's widely known that Deutsche Bank does want unload it whenever something reasonable can be worked out.

The under-construction project sitting between MGM Mirage's CityCenter and the Bellagio includes over 2,000 condominium hotel units in the current blueprint. If a hotel operator takes over, the condo component may be history and could be, for instance, turned into nice suites. The Las Vegas real estate market is going through a painful correction and these high-rise units would likely have very little demand. Mortgage funds are almost non-existent and buyers scarce. Scrapping them, therefore, seems to be the realistic way to go.   

For the sake of Sin City's currently somewhat battered image it would be a welcome boost to get the project finished and operated by an upscale hotelier.

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 3 commentsEsko Kiuru • March 12 2009 09:40PM

Comments

Esko I remember you blog on this, and it is good that someone came along quickly.  Sometimes there are silver linings in those dark clouds.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 9 years ago

George,

To get a legitimate owner for Cosmopolitan is important for the whole city. Gives it confidence.

Posted by Esko Kiuru over 9 years ago

Craig,

That's a valid observation. CityCenter, for instance, at full occupancy would severely strain the current road grid around it.

Posted by Esko Kiuru over 9 years ago

Participate