Harrah's Planning $1 Billion Expansion of Caesars Palace

Harrah's Entertainment said it has earmarked $1 billion toward expanding its flagship Caesars Palace hotel and casino in Las Vegas. Completion is expected in early 2009. The centerpiece of the expansion will be a new $375-million 23-story hotel called Octavius Tower that will be connected to Augustus Tower, which opened in 2005. The 665-room Octavius Tower will have dedicated pool suites on the second floor, overlooking three new swimming pools that will abut an expanded outdoor whirlpool spa retreat, a poolside café and a garden wedding venue. As part of the expansion, the existing 512-room Forum Tower will undergo an $83-million renovation. The building of Octavius Tower will bump Caesar Palace's room total to 4,000. Earlier this week, MGM Mirage announced a multi-phase and multi-year refurbishment of its 4,400-room Luxor hotel and casino, which will include new restaurants and remodeled rooms.

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