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CityCenter Postpones The Harmon Hotel & Spa, Cancels Harmon Condominium ComponentJanuary 7, 2009 By: Mark Rogers
The economic downturn has put major projects on hold throughout the world. Las Vegas has been no exception and the latest reality check comes from CityCenter Holdings, LLC, a joint venture between MGM MIRAGE and Infinity World Development Corp. The venture just announced a postponement of the opening of The Harmon Hotel & Spa to late 2010 and that it will cancel The Harmon residential condominium component. The Harmon as developed would have had approximately 200 residential units, of which 88 are under contract to be sold. Purchasers will be entitled to receive refunds of their deposits, but will be given the opportunity to purchase units at the Residences at Mandarin Oriental Las Vegas, Vdara and Veer Towers. Construction at The Harmon will continue through completion of the structure and exterior, with interior fit out to be deferred.
With the cancellation of The Harmon residential component, as well as other additional cost savings, the company now anticipates total savings of approximately $600 million up from its previously stated $400 million. In addition, by postponing The Harmon Hotel by one year, CityCenter will defer approximately $200 million in construction costs to complete the interior fit out of The Harmon. The Harmon is just one component of the CityCenter complex.
"We have full confidence in the long term future of the Las Vegas market and the success of CityCenter," said Chris O'Donnell, chief executive officer of Infinity World Development Corp. "This is an appropriate action in the current circumstances."