CITYCENTER :
Evaluating Las Vegas ’ Biggest-Ever Gamble
MGM Resorts ’ vision of the future has reached the age of reason BY OLIVER LOVATT
MGM ’ s CityCenter has turned 13 , in certain cultures observing a period of reflection as the subject leaves infancy and enters maturity . Enabled by the corporate conquests of Kirk Kerkorian ’ s MGM , the story of the company ’ s Las Vegas centerpiece is one of unprecedented ambition , innovation , daring and risk . It also led the company to the precipice of oblivion , before rebounding to record performance .
It is only now that we can dare ask the question , has Las Vegas ’ biggest gamble finally paid off ?
The Pride of Las Vegas
Surveying Las Vegas Boulevard in summer of 2004 , there were few that doubted Kerkorian ’ s reputation as the master dealmaker . Under the eye of Terry Lanni , MGM had completed the acquisition of Mirage Resorts , assimilating Steve Wynn ’ s legacy under Kerkorian ’ s umbrella , including The Bellagio , the crown jewel of Las Vegas .
Furthermore , the company had recently announced plans for the $ 7.9 billion takeover of Mandalay Resorts , giving the newly named MGM Mirage control of the majority of megaresorts built over the previous decade , plus some of the most experienced and capable executives in the history of the industry — notably Bobby Baldwin , Bill McBeath and Bill Smith , all of whom had been key players on Wynn ’ s journey .
After disposing of non-core assets , the challenge became how to maximize the opportunity on the prime parcel of land at the center of Las Vegas Boulevard , on the former site of the Dunes and Boardwalk hotels .
Leading the charge was Jim Murren , who , unlike most of the corporate leadership that had started in hospitality , had forged a career on Wall Street , joining the company to advise Kerkorian on his ambitious M & A plans . He joined MGM in 1998 , rising through the company , finally serving as CEO . Unlike many casino executives , Murren had studied art history and urban planning , and was the prime visionary behind Project CityCenter . It was to cost $ 4 billion .
The well-traveled , erudite Murren declared , “ CityCenter appeals to people that have already come here , but it will also attract people who had heretofore no interest in Las Vegas , who are worldly , who travel to great cities , recognize superior architecture and design , and seek out galleries , museums , and public spaces that have significance .”
Starchitects Align
Project CityCenter was to be different from anything seen in Las Vegas . There was to be no pirates , no volcanoes and certainly no gondolas . There were also none of the established casino architects that had spent decades crafting environments to resonate with gambling customers .
AM Stern , EEK and Cooper Robertson submitted conceptual master plans , with Gensler partnering with the in-house design and development team to run the project .
40 Global Gaming Business SEPTEMBER 2023