Dubai World has begun meeting with banks in an attempt to restructure US$26 billion in debt, according to Bloomberg. That the restructuring would involve less than half of Dubai’s total US$59 billion in debt obligations has provided some relief to skittish investors and has caused experts to believe Dubai is not in as serious trouble as first thought.
Dubai World last year invested US$5.1 billion in MGM Mirage as Dubai looked to expand into the entertainment and financial services world. In a joint venture with MGM Mirage, Dubai World bought the CityCenter Casino & Resort in Las Vegas last year for about US$5.4 billion.
Appearing on CNBC yesterday, James Murren, chairman and CEO of MGM, said all cross defaults have been eliminated and that a default at either parent would not result in a default of the joint venture. See his interview here.
Speaking of CityCenter, the massive, 67-acre development opens today on the Las Vegas strip—and might be struggling Las Vegas’ best hope for a rebound, the Associated Press reports.
There are worries, however. For instance, fears persist that the influx of 5,900 CityCenter rooms will put a further drag on rates, which have dropped by 25 percent since 2008.
But with Nevada’s unemployment rate hitting a record 13.3 percent, the city has put its bet on CityCenter. As Tony Alamo of the Nevada Gaming Commission told MGM Mirage and Dubai World executives when the development’s gaming license was approved: “We’re putting all our eggs in the ‘grow-the-market’ basket. I would be lying to you if I wasn’t concerned—that’s a reality. This is not just the company, it’s the state.”
Traveling for the holidays? It might be a good idea to do your homework before booking a room, as the rates for four-star hotels have drifted down into three-star territory.
The narrowest gap, according to Hotels.com, can be found in Oslo, Norway, where the rate difference between a three-star hotel and a four-star hotel was just £2 (US$3.32) between January and June 2009.
The price breaks come as four-star hotels try to lure budget-conscious travelers into their hotels, according to Hotels.com.
Read the full release here.
A settlement might be nearing in the corporate espionage lawsuit that Starwood Hotels & Resorts Worldwide has filed against Hilton Worldwide. In a 16 November memo to the court, Starwood attorney Charles A. Gilman said “the parties have been exploring the possibility of settlement.”
A case management conference related to the lawsuit that was originally scheduled for 18 November has been pushed back to 17 December.
For more information, read “Hilton and Starwood could settle.”
Alila Hotels and Resorts is opening two new properties, including its first contemporary resort in India.
The company has opened the Alila Diwa Goa, a 149-room hotel in India that is situated along the coast of Majorda Beach. The company said it has its eyes on opening more hotels in India.
Also, this month the hotelier is opening the Alila Villas Soori resort in Bali. On its Web site, the company did not give a specific opening date for Alila Villas Soori.
Compiled by Shawn A. Turner
