Earlier this month, the Edge Group announced that it was canceling the planned W Las Vegas mixed-use project. First proposed in 2005 for a 2008 opening, the project plan included 3,000 condo hotel units, 10 restaurants and nightclubs, a 75,000 square foot casino, and 300,000 square feet of convention and meeting space.

The project had grown from an initial 22 acres to incorporate another 25 acres from the adjacent Las Ramblas project which was canceled and had its land sold off last year. Initially a joint venture with Starwood Hotels and Resorts Worldwide, the project expansion necessitated a third party to share in the additional land costs and the mounting construction costs.

No such partnership was announced, and when Starwood pulled out of its Edge partnership, the whole project was shuttered. The company had reservation agreements with 750 prospective owners who have now had their deposits returned to them. Edge has announced it is selling the land which given its size and location could see a total price of more than $550 million. The size and location of the plot of land could still make for an attractive large development project.

While some put more of the blame for the failed W on financial difficulties and the project’s partner relations, this announcement will not be supportive of overall investor sentiment. To that end research firm Applied Analysis announced that there was a net decline in the number of proposed Las Vegas condo units for the first time since the market heated up in 2003. Marquee projects such as MGM’s CityCenter may still be selling relatively well, but it seems the market is taking a healthy turn away from speculators and more towards committed owners.

information from : www.heliumreport.com

This entry was posted on Wednesday, June 6th, 2007 at 4:21 am and is filed under Hotel. Tags: Condo condo hotel development Edge Group Hotels Las Vegas Projects Resort Resorts Worldwide restaurant Starwood Starwood Hotel Starwood Hotels Starwood Hotels and Resorts . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.