When gambling magnet Carl Icahn decided of selling his unfinished Fontainebleau Casino resort in August, he opened a fresh feeling of hope to the gaming sector in the northern part of the Las Vegas Strip. For many years since the ‘great recession’ that brought almost all businesses in the hospitality industry to a standstill, the Fontainebleau Casino has remained unfinished.
But now that the property is in the able hands of a new owner at least officially since August 2017, there are chances that things will start to move in a different direction. First, it is because the new owner is a real estate firm that has shown that it will stop at nothing until the construction for the remaining part of the 3, 815-room property is completed.
It is not clear whether the new owner, Steve Witkoff from New York and New Valley from Miami who acquired the Fontainebleau Casino at the cost of $600 will run the casino business upon completion.
Rumor has it that upon completion of the 68-storey property, the new owner might be contemplating to rebrand the property, which is evident, by giving it a different name and probably lease it to Hilton or Marriott, major hotel chains in the world. Icahn who bought the property in 2010 ensured that even if Fontainebleau Casino stayed unfinished for many years, he made quite a fortune from the investment.
The exact amount of profit he made from the sale of the property is approximated at $457. John Knott, the CBRE Group Executive VP says that it is estimated that it is going to cost the new owner about $900 million to $1.6 billion to ensure that the property is finally complete. He, however, did not say the amount of time that he expects the construction will take place. According to Chris Giunchigliani, the Clark County Commission, the new owners are going to keep the property a hospitality and tourism facility.
His observations are based on the fact that the position of the building is very strategic and that Fontainebleau Casino has long been associated with the hospitality and tourism industry, with any changes on the kind of business likely to affect how the new property will be seen.
“Looking at the position of the building and its basic sound, it is probable that the new owners will opt to continue running the property under the hospitality and tourism sector. Any changes to the kind of business will affect how the property will be viewed,” Chris told Las Vegas Review-Journal.
It is true that hitherto, nobody knows what exactly will happen to the northern part of the Strip after the completion of the property. However, it is possible that the area will start to feel some fresh air, something that is likely to boost the economy of an area that is known to host a lot of foreigners throughout the year.
Fontainebleau Casino’s completion is likely to spur a lot of hope to a place that seemingly lacks major convention space as the other part of the Strip.