Friday, September 5, 2008
Starwood, Sands Plan Vegas Venture
Starwood Hotels & Resorts Worldwide Inc.'s high-end St. Regis brand will make its first appearance on the Las Vegas Strip as part of a deal in which Starwood will manage a luxury condominium development for Las Vegas Sands Corp.
Associated Press St. Regis's Las Vegas debut will be adjacent to Starwood's Palazzo hotel-casino and the Venetian, which combine to form the largest resort under one roof on the Strip.Starwood has other brands in Las Vegas, but the agreement the companies unveiled Thursday marks its first luxury brand in the city. It is also the first time that casino operator Las Vegas Sands has hired an outside management company to run one of its Las Vegas properties.
The $600 million condominium development, scheduled to open in 2010, is adjacent to Las Vegas Sands' two massive resort complexes, the Venetian and the Palazzo. Between the two resorts, the company controls and manages around 7,000 rooms on the Las Vegas Strip.
Adopting the St. Regis brand may help Las Vegas Sands distinguish the development from the thousands of condos expected to come onto the depressed local property market in the next few years.
Sands officials have said in the past that they plan to attract buyers from their network of high-spending customers across Asia, as the company continues to expand its presence there.
Units at the St. Regis Residences at the Venetian Palazzo will range in size from 1,700 square feet to a 10,000-square-foot villa with a private pool.
Sands officials have said they foresee $2 billion in sales. Ownership will include traditional English butler service, a hallmark of the St. Regis brand.
Starwood, based in White Plains, N.Y., is one of the country's largest hotel-management companies, with a large stable of brands. Its Las Vegas properties include a Westin hotel and the Planet Hollywood Sheraton.
Starwood also signed contracts with Las Vegas Sands to manage two of the company's hotel properties under development in Macau.
Starwood will manage a Sheraton and a St. Regis hotel in the Chinese gambling enclave.
Write to Tamara Audi at tammy.audi@wsj.com
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