By David Bodamer, Senior Associate Editor
Peter Morton, the chairman & founder of the Hard Rock Hotel & Casino, bought the 24 acres adjacent to his property in Las Vegas for $86 million. He plans to build a $1 billion, 1.5 million-square-foot hotel/condominium project on the site.
The new project, being designed by architect Richard Meier, will feature four buildings containing 1,500 hotel-condominium units. It will include restaurants, nightclubs, retail and a health club and spa. Construction on the project will begin next year. The first phase of the new complex will open one year from the start of construction.
“It’s a natural for him to acquire the acres contiguous to the Hard Rock,” said David Atwell, a hotel and casino broker with Resort Properties of America. “The property is now occupied by a 500-unit apartment complex of which usage has become obsolete. (And) the condo craze in Vegas is at a fervor pace, and the concept like what was done at MGM Grand is a natural for the Hard Rock.”
Atwell added that the expansion of the Hard Rock is not unlike the work of other casinos. He pointed to Caesar’s Entertainment Inc.’s addition of the Forum Shops in the 1980s as a prime example of a well-executed expansion.
“A growing commercial gaming enterprise needs to expand and many times right next door is perfect for redevelopment,” Atwell said. “If you remember, years ago there were motels and apartments where the Forum Shops sit today. We represented Caesar’s in acquiring these properties and today sits the most profitable shopping center in the whole world.”
Calls to officials at the Hard Rock Hotel were not returned by press time.