The answers are we're not sure and no.
Here's the background. The Las Vegas W Hotel, an upscale brand of Starwood Hotels & Resorts, was announced in fall 2005. To be built by local developers Edge Resorts, the W was planned as a $1.7 billion 3,000-room condo-hotel-casino on 21 acres at the corner of Harmon and Koval avenues, site of the now-defunct Ice nightclub. W was announced as planning a 75,000-square-foot casino, 300,000 square feet of convention space, and residential units starting at $550,000. Construction was scheduled to begin in 2006, with an opening date in 2008.
Edge purchased the original 21 acres from homebuilder D.R. Horton on Harmon and Koval for $108 million in 2005. This year, Edge bought up another 25 acres adjacent to the first lot from the developers of the failed Ramblas Hotel-Casino (known for the participation of George Clooney) for $205 million. All told, Edge paid $4.4 million an acre; today, real estate on Harmon is estimated to be worth more like $8 million-$10 million an acre.
Edge got as far as opening up residential sales and promptly sold 750 condos. However, ground was never broken; Edge principals turned to investment bankers "to explore strategic partnerships in the W project"; rumors circulated that Starwood wanted out of the deal; and buyers interested in the condos are now placed on a waiting list.
Edge could sell its land and double its money. It might do just that, given that, as one analyst put it, "The value is tied up in the land. The risk is tied up in development." Or it could partner up with a casino company, Starwood or another hotel company, a real estate developer, or even a private equity group to open the mixed-use project as originally envisioned. For now, though, the W Hotel and its 46 acres are on hold, and when and if anything develops with it, we'll let you know.
