to Make Way for a $4 billion Mega Complex
Will Include Four Hotels with 5,300 rooms, Convention
Space Will Exceed One million Square Feet
LAS VEGAS, Jan. 4, 2005 - Boyd Gaming Corporation (NYSE: BYD) today announced that it will develop a multi-faceted, world-class resort complex on its 63-acre site on the Las Vegas Strip. The development, scheduled to open in early 2010, is expected to be among the most significant projects in Las Vegas' ongoing evolution, which continues to transform the city into one of the leading resort destinations in the world. The Company expects that the development will be a significant leader in Las Vegas' key growth centers of casino gaming, luxury hospitality including world-class dining and nightlife experiences, shopping, meetings and conventions, and entertainment.
The $4.0 billion development, to be named Echelon Place, will combine the $2.9 billion wholly-owned Echelon Resort with hotel and retail joint ventures between the Company and key strategic partners. The wholly-owned Echelon Resort will be operated principally by the Company, but include operating arrangements with leaders in the hotel, restaurant, nightlife and entertainment industries who will bring unique brands and industry-leading reputations and relationships to the project.
The development master plan, Echelon Place, is expected to be fully developed in one phase and integrate several elements:
Four distinctive hotels featuring 5,300 guest rooms and suites
Shangri-La Hotel, Las Vegas
Delano Hotel and Mondrian Hotel
Delano in South Beach Miami has been an international destination for glamour, entertainment, and sophisticated nightlife for over a decade, and played a catalyzing role in the revival of South Beach. Delano Hotel Las Vegas will include 600 guest rooms and suites, a destination nightclub, lobby bar and Asia de Cuba restaurant. It will also feature an Agua Spa with fitness center, private pool and recreation area, and a separate porte cochere and lobby.
Today, Mondrian's elegant urban resort is a Hollywood haven for both business and nightlife. Mondrian Hotel Las Vegas, accommodating equally the refined business traveler and the leisure escapee, will include 1,000 guest rooms and suites, a distinctive bar and restaurant, meeting and conference space, private pool and recreation area with Skybar, and a separate porte cochere and lobby.
Las Vegas ExpoCenter
Other Master Plan Elements
William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming, commented, "We are very pleased to have Bob return to reprise our success at Borgata and lead the development of Echelon Place. From concept to design to construction to opening to operating, Bob's outstanding performance at Borgata, one of our industry's finest success stories, is widely acclaimed. In my opinion, there is nobody better for this job."
Joining Bob Boughner from Borgata will be Kevin Sullivan, who after having managed several key development and administrative areas at Borgata, will serve as Senior Vice President and Chief Administrative Officer for Echelon Resorts. Many of the design and construction firms involved in the development of Borgata are expected to play major roles in the Echelon Place development, including Tishman Construction Corporation, who will serve as construction manager.
Bob Boughner commented, "True to the evolution of Las Vegas as a world class destination, Echelon Place will integrate a compelling collection of brands and environments in a single and auspicious development. We are assembling an internationally distinguished group of strategic partners in the hotel, restaurant, retail, entertainment and nightlife arenas to complement our Company's own skills and resources. We will draw upon our highly successful Borgata experience and are committed to developing a resort destination that can be counted among the best Las Vegas has seen."
The Company also announced that, subject to regulatory approval, Larry Mullin has been promoted to President and Chief Operating Officer of Borgata and will be responsible for all day-to-day operations of the property. Bob Boughner continued, "Larry Mullin has had a distinguished 20 year career in the gaming industry and has played a vital role in the success of Borgata. We are extremely confident in his abilities." Bob Boughner will continue to oversee Borgata's public space expansion project that is scheduled to open in the second quarter of 2006.
The Company's 63-acre Las Vegas site is currently occupied by the Stardust Hotel and Casino. The Company expects to operate the Stardust through 2006 as it advances the Echelon Place planning, design and permitting process. In connection with the announced intention to discontinue operations at the Stardust, the Company will record an impairment charge in the first quarter of 2006 in the approximate range of $50 million to $60 million pre-tax.
For additional information and to follow the progress of the development of Echelon Place, the Company today launched the Echelon Place website, located at www.echelonresort.com .
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. www.boydgaming.com .
|Also See:||Related Las Vegas and Centra Properties to Partner With George Clooney, Rande Gerber in $3 billion Hotel-Condominium-Casino Complex / August 2005|
|W Hotel Las Vegas Planning Lifestyle Elements That Will be Unheard of Even for Las Vegas; Will Compete with the Palms, Wynn Las Vegas and Four Seasons / August 2005|