economy have led to reassessment of some projects.įurther south along the gambling corridor, the troubled Cosmopolitan casino-hotel has also suffered from the credit crunch. “We have been concerned about capital raising and returns on capital, and this change may lead to a reduction in scope or cancellation,” Deutsche Bank analyst Bill Lerner said in a research note.ĭevelopers have plans to add more than 40,000 luxury hotel rooms to the Las Vegas Strip - about one-third more than today - but scarce credit and the slowing U.S. It plans to resume construction in three or four quarters, assuming credit market conditions and the economic outlook improves. Las Vegas-based Boyd said it had decided to delay the construction of the $4.8 billion Echelon, already built to around eight stories, because of the challenging economy. economic slowdown reduced gambling revenue. The company, whose shares had been falling for nearly a year, also announced a $100 million share repurchase program and posted lower second-quarter profit as the U.S. The construction delay overshadowed news that Boyd was suspending its quarterly dividend. LOS ANGELES (Reuters) - Boyd Gaming Corp said on Friday that it would delay construction of its partially built Echelon casino project on the Las Vegas Strip, and investors concerned about a glut of new resorts in the city sent the company’s shares up as much as 30 percent.
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