Delays at CityCenter

MGM Mirage and its CityCenter Holdings partner, Infinity World Development Corp., are postponing the opening of The Harmon Hotel & Spa until 2010 and are canceling The Harmon residential condominiums due to flaws in construction.


A rendering of CityCenter on the Las Vegas Strip // (c) MGM Mirage
A rendering of CityCenter on the Las Vegas Strip

MGM Mirage and its CityCenter Holdings partner, Infinity World Development Corp., are postponing the opening of The Harmon Hotel & Spa until 2010 and are canceling The Harmon residential condominiums due to flaws in construction.

"By canceling The Harmon condominium component, we will be able to avoid the need for substantial redesign of The Harmon resulting from contractor construction errors," said Robert Baldwin, president and CEO of CityCenter. "In taking these steps related to The Harmon, we can remain focused on maximizing the operating performance of Aria, Mandarin and Vdara to their desired levels."

The Harmon Hotel & Spa is one of four hotels to be housed within the massive, 67-acre CityCenter Complex on the Las Vegas Strip and was originally slated to open later this year. Once completed, The Harmon will feature approximately 400 rooms and suites. For now, construction at the hotel will continue through completion of its structure and exterior, while the interior will be outfitted at a later date.

While MGM Mirage did not cite the troubled economy as a reason for the change in plans, the company will save a total of approximately $600 million in costs by canceling The Harmon residential complex. Postponement of The Harmon Hotel
opening by one year will defer approximately $200 million in construction costs to outfit the hotel’s interior.

"This is an appropriate action in the current circumstances," Infinity World Development CEO Chris O’Donnell added.

All other major properties at City Center — Aria Resort & Casino, The Mandarin Oriental Hotel & Residences and Vdara — remain on schedule for completion by December.

www.citycenter.com

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