Crown Resorts has indicated they are pulling out of the Alon Las Vegas development. The proposed resort was going to be located on the North Strip across the street from Wynn.
Alon's management team has contented they are still working to find funding. In a press release earlier today they touted the benefit of a turn-key project for a company with deep pockets:
Having invested two years in the program planning, design, development, pre-construction and entitlement process, the Alon resort project has been thoroughly vetted and is considered "shovel-ready."
All they need is $2 billion or so to make it happen.
As much as we would like to see new mega-resorts on the Strip, the math just doesn't add up for some of these new projects.
Existing Las Vegas companies already have enough casinos and hotel rooms. They are increasingly choosing to renovate rather than rebuild.
New companies looking to enter the Las Vegas market can often do so more economically by purchasing existing properties. Penn National did just that by purchasing the Tropicana and M Resort.
Thursday, December 15, 2016
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