Quantcast
MobileRJ | RSS TwitterTwitter FacebookFacebook E-mail Alerts
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sat Sun Mon Tue Wed Thu Fri

sponsored by
Business
Jan. 07, 2009
Copyright © Las Vegas Review-Journal

Permits sought to build world's largest hotel in Las Vegas

Casino and retail complex would have 6,745 rooms

By ARNOLD M. KNIGHTLY
LAS VEGAS REVIEW-JOURNAL



Recession or not, a joint venture led by a financially struggling Israel-based development group plans to build the world's largest hotel in Las Vegas.

A holding company that includes the AFI Group, formerly known as Africa Israel Group, is scheduled to ask Clark County commissioners today for use permits to build a 6,745-room hotel, casino and retail complex on 60 acres along Harmon Avenue west of the Hard Rock Hotel.

Most Popular Stories
  • Fraud with Portent
  • Debt-ridden casino operators told to expect pressure
  • REAL ESTATE: Las Vegas home prices stabilize as threat of foreclosure flood wanes
  • GAMING COMPANY EARNINGS: Station drops $455.4 million
  • THE STRIP: License backed for Aria
  • GLOBAL GAMING EXPO: Recession over? Don't bet on it
  • THE STRIP: License approved for Aria
  • Union wants insiders to help pull Station from bankruptcy
  • INSIDE GAMING: Missouri outburst hurts Lee, Pinnacle
  • Foreclosure wave continues




    • The largest hotel in the world now is the 6,118-room First World Hotel in Malaysia. Many of the largest hotels in the world are already in Las Vegas, including the 5,690-room MGM Grand, the 4,408-room Luxor and the 4,341-room Mandalay Bay and The Hotel resorts.

    The permits would give the group two years to begin construction on the project or seek an extension.

    Approval of the permits would allow the development group to go to investors and banks seeking financing for the project. No price on the project was available.

    Bill Lerner, a gaming analyst with Deutsche Bank, said it is surprising to see someone pursue such a large project in the current credit markets.

    "Greenfield development (building from the ground up) in this environment is a difficult strategy to achieve returns in excess of cost of capital," Lerner said.

    The project is listed on the AFI Group's Web site as "Edge (Las Vegas)" with a short description saying construction is planned over three phases.

    AFI Group owns or is developing commercial and residential properties in Israel, Russia, Central Europe, Eastern Europe and New York, Florida, California and Arizona.

    The AFI Group is the investment company of multibillionaire Lev Leviev, who made his fortune in the Israeli diamond business.

    Leviev's real estate division, which is publicly traded on the Tel Aviv stock market, has been selling assets to repay debt. The firm said in August it will sell a 49.9 percent stake in the Clock Tower on Madison Avenue, 49 percent of the Times Square Building and its full stake in the 23 Wall Street retail project and 15 Broad Street condominium building, all in New York City.

    Africa Israel Investments CEO Izzy Cohen told Bloomberg News in late December that the company will suspend all projects not already under construction and eliminate jobs this year to control costs.

    Lerner said even though the developers are seeking approval now, they probably won't put a "shovel in the ground until years from now" after the economy improves.

    "My sense is that perhaps this is a development story for 2013 or forward," he said. "At that time, maybe we will be in a better position to absorb it."

    The project would have four high-rise towers.

    Reuters reported in July 2007 that Africa Israel had taken a 49 percent stake in the project, with the remaining stake split between financial firm Credit Suisse, previous land owners Edge Group, and a New York-based partnership between developers Steve Witkoff and the Cipriani.

    The land was acquired for $751.3 million, or $12.5 million per acre, in May, when New York-based developer Alex Sapir paid $75.1 million for a 10 percent interest, according to county records.

    Plans for Las Ramblas, which was tied to actor George Clooney, and then the $2.5 billion W Las Vegas, which was canceled in May 2007, were approved for the site. Neither was built.

    The W Las Vegas was approved for 3,000 hotel-condominium units, and Las Ramblas was approved for 4,000 hotel-condo units.

    Most land-use permits approved by the county during recent years have expired.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 20 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Nan wrote on January 10, 2009 10:52 AM: Good Morning and Happy New Year!

    Did you know that the Venetian Hotel property offers more than 7,000 + all suites here in Las Vegas? In China it offers the large Hotel and Casino property based off China's coast in Macau.

    Just an FYI, otherwise, thanks for the other great articles.


    Hey Rob L. wrote on January 07, 2009 08:55 PM: I appreciate your comments.

    I'm sad that they ring so true.

    We need to isolate the players that think this land grab is life changing,

    I'm done watching guys like Sisolak becoming MILLIONAIRES at the expense of the Clark County Taxpayer.

    If he can't abstain from a vote that gives his Atorney $31,000,000.00, on his first day in Office, I have no use for him or the horse he road in on.

    What a scumbag!


    Rob L. wrote on January 07, 2009 05:19 PM: Headline, that was the best post I have seen in years including my own and I think pretty highly of myself!

    Seriously though, what's the angle here? Everyone who hasn't been in coma for the past year know this will never happen so what's the deal? I wonder what was asked but a permit was given or an even better question, why even require one in the first place if they are so easy obtain?


    Sad Summerlin wrote on January 07, 2009 04:04 PM: 16 comments.

    Not one in support of the opportunity to add investment dollars to our economy.

    If someone wants to take a risk and build the largest hotel in the world in Las Vegas... why should we stop them?

    That's revenue for our economy during the construction.

    That's jobs to our people when the construction is complete.

    That's tourist dollars for the visitors who stay there.

    Now I am all about protecting Vegas from fraud or lawsuit, but shouldn't we be celebrating that people still want to take a chance and invest in our city?


    Joe Bama wrote on January 07, 2009 01:23 PM: HA HA the gaza strip! Good one 2zero. Dr J you think the idiots on the commission will turn them down? I can see the hype starting already, this high class grind joint built with conflict free diamonds!


    Joe Bama wrote on January 07, 2009 01:23 PM: HA HA the gaza strip! Good one 2zero. Dr J you think the idiots on the commission will turn them down? I can see the hype starting already, this high class grind joint built with conflict frre diamonds!


    Junk Bond Mike wrote on January 07, 2009 11:44 AM: A financially struggling Israel-based development group. Gee another one of these "groups".


    casinocon wrote on January 07, 2009 10:16 AM: Well, you gotta admire their gumption! Selling off assets with one hand, and planning the largest hotel in the world with the other. This is the stuff that really chaps my hide . . . like Trump who has been bankrupt how many times (once again he is on the verge) and still he is allowed to partner up and build. Jeez, are we really as stupid as we look???


    Sounds like wrote on January 07, 2009 10:13 AM: It sounds like someone that can't make payments on a used Ford talking about buying a new Cadillac!

    Something sleazy is going on!


    beentheredonethat wrote on January 07, 2009 10:03 AM: Harry,

    It is not proposed to be the tallest hotel in the world, but rather the largest by total rooms.


    Read All Comments