Echelon Las Vegas $4.8 Billion hotel on the Strip stops construction progress. Today Boyd Gaming Corp. said the challenging credit markets and difficult economic conditions will delay construction until mid 2009.
Market and credit analysts were hoping the megaresorts expected to open in Las Vegas, Nevada during 2009 and hiring of employees could help raise home prices and sales of residential real estate in a year. This resort will not help the local economy in the upcoming year. There are only hopes the Echelon Place will continue.
The news also increased shares of Boyd Gaming Corp. over 17 percent on the New York Stock Exchange. This shows the support of the analyst community to stop construction of their real estate. Wall Street concurs with management’s decision to protect shareholders value.
Echelon is located on the old site of the imploded Stardust hotel.
Over 800 construction workers are employed on the Echelon site. Boyd doesn’t know how many will be unemployed due to the news.
There are two joint venture partnerships in the resort on the Strip, Morgan’s Hotel Group and General Growth Properties. The state of the economy makes obtaining financing almost impossible for this partnership. GGP will operate the retail space and Morgan’s Hotel Group will contribute $1.5 billion to the project and build two boutique hotels.
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