MGM and Dubai scale back CityCenter and seek investors

The us$ 11 billion project is still set to open late this year, according to developer CityCenter Holdings, a joint venture between casino operator MGM Mirage and a unit of investor Dubai World.

MGM has been trying to scale back costs of developing the project as the hotel and gaming markets take a hit from the economic slowdown. MGM and Dubai World are both "actively pursuing additional financing" for the project, according to CityCenter.

CityCenter said construction on the 400-room Harmon Hotel & Spa was being deferred for one year, postponing the opening of the hotel to late 2010, and the residential condominium component of the Harmon had been canceled. The original plan called for about 200 residential units in the hotel; 88 are already under contract to be sold. Those buyers will be entitled to refunds of their deposits, CityCenter said.

The Harmon is just one part of the CityCenter complex, which will also include the 4,000-room ARIA casino resort tower, a Mandarin Oriental hotel, and a 500,000-square-foot retail and entertainment complex. All those parts of CityCenter remain on schedule for a December 2009 opening, the developer said.