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Las Vegas’ unfinished Fontainebleau resort site on the north side of the Strip has been acquired by a group led by New York developer Witkoff.
Witkoff and New Valley acquired the site from Carl Icahn for $600 million, four times what Icahn paid for it in 2010. The new owners referred to the site as “formerly known as the Fontainebleau,” suggesting that the hotel will have a different brand. There was no information about Witkoff’s investment or an opening date.
“We look forward to applying our industry-leading value-enhancing platform to this property to unlock its true growth potential,” Witkoff CEO Steve Witkoff said.
Construction began in 2007 on the 3,889-room Fontainebleau Las Vegas, which was to be a sister property of the iconic Fontainebleau Miami Beach.
Slated to cost about $3 billion to develop, the property was about 70% completed when it fell into bankruptcy and construction was halted in April 2009. Icahn bought the property the following year for $148 million.
The sale marks continued investment activity along the northern end of the Strip during the past few years. In 2013, Malaysian developer Genting acquired the halted Echelon site from Boyd Gaming for $350 million. That site is earmarked as Resorts World Vegas, which may have 3,000 rooms, though construction has been minimal there.
The following year, the 1,613-room SLS Las Vegas opened at the old Sahara site, though challenges led majority owner Stockbridge to buy out the stake of minority owner SBE in 2015. The SLS’s 289-room Lux Tower was rebranded as the W Las Vegas last year.
The 2,427-room Stratosphere, which was built in 1996, is being acquired by Golden Entertainment for $850 million.
Witkoff and New Valley have built Ian Schrager’s Public hotel in New York, which opened earlier this year. They also are developing the Times Square Edition, due to open in late 2017, and the West Hollywood Edition, scheduled to open next year. The Edition brand is a collaboration between Marriott International and Schrager.
Sоurсе: travelweekly.com