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Snapshot :: Echelon's Construction Ghost Town

As we told you earlier this month, The Echelon Project which was to include a Hotel Shangri-La as well as a Mondrian and a Delano has been put on hold until the credit markets get better. That means construction that has already started on the site has been stopped indefinitely. Here's what it looks like now.

While new projects have been delayed or crapped out completely in Las Vegas, we aren't noticing much of a downtown in Sin City just yet. According to the Las Vegas Convention and Visitors Authority, visitor numbers and occupancy rates are down just a touch. But it's not hugely noticeable. The crowd at the Cher concert was nearly sold-out on Sunday, the gaming floor at the Palazzo was bustling last night (a Monday night) and traffic on the strip is still at a standstill.

So Vegas might be doing just fine with what it's already got.

Tags: Viva Vegas / Morgans Hotel Group / Hotel Delays / Mondrian Hotels / Echelon / → All Tags

Morgans Hotel Group Delays Mondrian and Delano in Las Vegas Indefinitlely

Wow. This is the most stunning hotel delay news yet and a very good indicator of just how bad the hotel industry is getting these days.

Morgans Hotel Group has announced they are putting their Echelon Las Vegas project, which would include a Mondrian and a Delano Hotel, on hold.

Morgans has made the decision based on their partner, Boyd Gaming's statement that the "challenging" economic conditions and scary capital markets had forced them to delay Echelon construction. The official statement from MHG:

Given Boyd's announcement and the difficulties in the credit markets, MHG believes that the joint venture will be unable to secure financing at favorable rates and conditions by September 15, 2008. MHG does not intend to further extend the joint venture agreement on its current terms but expects to evaluate future proposals relating to the project with Boyd.

In other words: Mondrian Las Vegas and Delano Las Vegas? Crapped out.