Dive Brief:
- Construction has begun on a new 20-story hotel-casino at the south end of the Las Vegas Strip, according to a project press release.
- The development by Shopoff Realty Investments and Contour, in partnership with Dream Hotel Group, will feature seven dining and nightlife venues, 12,000 square feet of meeting and event space and a 20,000-square-foot casino. McCarthy Building Companies is the design-build contractor for the project.
- The 531-room hotel and casino is the latest sign of positive sentiment in the Las Vegas construction industry, despite recession concerns.
Dive Insight:
Demand for entertainment and hotel projects in Sin City, like the Dream Las Vegas, remain strong despite economic headwinds and signs of cratering consumer confidence. That’s because the nonresidential construction sector could weather these economic headwinds better than others due to its longer planning and funding timelines, said Bill Shopoff, president and CEO of Shopoff Realty Investments.
“It is our opinion that there is a good pipeline of commercial projects that should be able to weather the recession if one occurs,” said Shopoff. “We don’t expect the recession to have the depth nor duration to seriously impact the demand to construction.”
The Dream Las Vegas hotel and casino, expected to complete in late 2024, is projected to generate significant tax revenue and create 4,000 new direct and indirect construction jobs, according to the project press release.
“Given the construction duration of commercial projects versus single family projects which can be stopped much more quickly, we expect things to stay strong,” said Shopoff. “We believe our timing to be on target with a planned delivery in late 2024. If there are economic headwinds, they should be well behind us by the time we open.”
The planned venue is just one of the many entertainment projects in the construction phase in Las Vegas. For example, Toronto-based Colliers just brokered a $240 million, 40-acre land deal for a Formula 1 development on the Strip. Other significant entertainment projects underway in Las Vegas include a $3 billion Oak View Group entertainment development, as well as the MSG Sphere.
