CityCenter raises itself from canvas

The boxer Manny Pacquiao turns to the crowd after arriving at the MGM Resors in Las Vegas.

It is not just boxing fans who will be cheering tomorrow when Manny Pacquiao and Shane Mosley step into the ring in Las Vegas.
The nearby huge CityCenter resort, which is half-owned by the Dubai World subsidiary Infinity World, is showing signs of improving health amid evidence of a wider recovery on the Strip.
MGM Resorts, the leisure company that owns the other half of the hotel and casino development, said there had been a rise in rates and occupancy levels at its Vegas properties.
This is helping to reduce CityCenter's losses after the resort, which cost US$8.5 billion (Dh31.22bn) to build, was launched in December 2009 in a severely depressed and challenging market.
The development was planned during a boom time for the Las Vegas property and tourism sector. The Nevada city was hit hard by the economic downturn, as convention bookings and tourism declined and property prices slumped.
But events such as the high-profile welterweight title bout, which takes place at the MGM Grand Garden Arena, will only help to boost business in Las Vegas.
"Consumer spending is strengthening and we will take advantage of this through a very strong event calendar that we have throughout the summer and into the second half," said Jim Murren, the international chief executive of MGM Resorts.
"We know that when we have good events at the arenas people spend more money, and we're seeing that right now.
"This weekend we have a very important fight at the MGM. This is going to draw attention from around the world. Manny Pacquiao is fighting Shane Mosley. This is clearly going to be a strong draw for the Strip properties."
The number of events at the company's Mandalay Bay centre and MGM Grand Garden properties had risen significantly this year, Mr Murren said.
A Paul McCartney concert at the venue next month would also help to attract visitors and boost income, he said.
MGM Resorts reported a 16 per cent increase in revenue per available room at its Las Vegas properties in the first quarter, compared with the same period last year.
Occupancy rose to 87 per cent from 85 per cent, and the average daily rate was up 13 per cent to $130. Convention bookings at CityCenter were also growing, the company said.
But such signs of recovery have come too late and are taking place too slowly for some.
The downturn in the US has had devastating consequences for Las Vegas as it has gone through a boom and bust cycle.
The Sahara Hotel and Casino, one of the last properties from the Rat Pack era, is preparing to close this month. The Sahara opened in 1952, but its owner, SBE Entertainment Group, said it was no longer financially viable.
The CityCenter complex's main attraction is the 4,004-room Aria gaming resort. It also has luxury non-gaming hotels including the first Mandarin Oriental in Las Vegas. There is also a 46,450 square metre retail and entertainment district and a $40m fine-art collection.
The improvement at the development has been significant. Aria's occupancy was 86 per cent in the first quarter and it had an average rate of $201 for revenue per available room of $172, a 41 per cent rise on the same period last year.
This helped the property to cut its losses to $6 million from $119m last year.
This was CityCenter's strongest quarter, despite the opening of the nearby $3.9bn Cosmopolitan hotel and casino in December. Analysts said that Cosmopolitan, Owned by Deutsche Bank, might have been expected to provide strong competition. "Overall we believe the opening had a positive impact on all of CityCenter and has helped to improve foot traffic," said Bobby Baldwin, the president of CityCenter.
MGM Resorts, despite having more than $12bn of debt, remains optimistic on CityCenter's future.
"We're very happy with the operating improvement we have seen in the first quarter," said Mr Murren. "We expect more great things to come for that venture."
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