{"id":33289,"date":"2015-12-12T15:16:09","date_gmt":"2015-12-12T23:16:09","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=33289"},"modified":"2015-12-12T15:16:09","modified_gmt":"2015-12-12T23:16:09","slug":"crown-resorts-vegas-project-a-risky-gamble-for-packer","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/","title":{"rendered":"Crown Resorts’ Vegas Project a Risky Gamble for Packer"},"content":{"rendered":"

\n

\"Investors
James Packer under pressure after investors fail to show interest in Crown’s Las Vegas project. (Image: TheNewDaily)<\/figcaption><\/figure>\n

James Packer’s Las Vegas gamble might end up costing him more than he anticipated after investor interest in his Alon project hit a new low.<\/p>\n

Crown Resort’s Alon project is set to cost $1.9 billion and will bring a new casino and hotel complex to the Vegas strip, but things aren’t going as smoothly as Crown or its CEO, Packer, would like.<\/p>\n

Although few details have been released, it’s known that the Alon project will be built on the site of the old New Frontier casino and will likely boast a two-tower hotel complex with a total of 1,100 rooms.<\/p>\n

Mystery Project Fails to Inspire Interest<\/b><\/h2>\n

However, aside from these details and some simple drawings, the full extent of the project hasn’t been made available for public consumption.<\/p>\n

What has been revealed though is that Crown Resorts has a 74 percent stake in the $1.9 billion venture. What’s also known is that Crown wants to reduce this investment by around 45 percent, but so far it’s struggling to attract the necessary support from private investors.<\/p>\n

In a recent report by Credit Suisse, it was revealed that Crown<\/a> hasn’t been able to raise the $425 million it wants to help reduce its risk and help make the project a reality.<\/p>\n

This apathy from investors has caused Crown’s bond risk to rise by 42 points in the last three months and could cause the company’s credit rating to take a hit in the coming weeks.<\/p>\n

\n

In fact, with its debt-to-cash-flow ratio in a precarious position, Crown may soon have to make some tough decisions regarding the future of the Alon project.<\/strong><\/p>\n<\/blockquote>\n

Although it’s far from a dire situation, the company can’t afford to continue operating with such a large debt risk. Between the Alon project and its one-third stake in Melco Crown Entertainment’s $3.2 billion Studio City resort, Crown’s risk rating is now the highest it’s been since 2009.<\/p>\n

One of the main reasons for Crown’s inability to attract potential investors for its Vegas project is the demographic it’s aiming to attract.<\/p>\n

According to Packer<\/a>, the aim was to bring Chinese VIPs over from places like Macau and give them a new place to gamble.<\/p>\n

However, with a general downturn in the Asian gambling economy and the further assumption that such a market no longer exists, investors now appear reluctant to gamble on Crown’s venture.<\/p>\n

Concerns Over Crown’s Risk<\/b><\/h2>\n

While credit analysts are becoming increasingly concerned about the viability of the project, former Wynn Resorts executive and a member of the team behind the project, Andrew Pascal, maintains that things are progressing as planned.<\/p>\n

“We are currently in the cycle of raising our capital, and the project has been well received. While the macro-economic environment, particularly in Asia, is a bit turbulent, we remain confident in our capacity to complete our financing and execute our project,” said Pascal.<\/p>\n","protected":false},"excerpt":{"rendered":"

James Packer’s Las Vegas gamble might end up costing him more than he anticipated after investor interest in his Alon project hit a new low. Crown Resort’s Alon project is set to cost $1.9 billion and will bring a new casino and hotel complex to the Vegas strip, but things aren’t going as smoothly as […]<\/p>\n","protected":false},"author":42,"featured_media":33290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13,18],"tags":[],"acf":[],"yoast_head":"\nCrown Resorts' Vegas Project a Risky Gamble for Packer<\/title>\n<meta name=\"description\" content=\"Crown Resorts Alon project in Las Vegas could cost James Packer more than he anticipated after he struggles to raise $425 million in private investment cash.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crown Resorts' Vegas Project a Risky Gamble for Packer\" \/>\n<meta property=\"og:description\" content=\"Crown Resorts Alon project in Las Vegas could cost James Packer more than he anticipated after he struggles to raise $425 million in private investment cash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2015-12-12T23:16:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/12\/new_gty_121113_james_packer.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"740\" \/>\n\t<meta property=\"og:image:height\" content=\"385\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/\",\"url\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/\",\"name\":\"Crown Resorts' Vegas Project a Risky Gamble for Packer\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/12\/new_gty_121113_james_packer.jpg\",\"datePublished\":\"2015-12-12T23:16:09+00:00\",\"dateModified\":\"2015-12-12T23:16:09+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Crown Resorts Alon project in Las Vegas could cost James Packer more than he anticipated after he struggles to raise $425 million in private investment cash.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-vegas-project-a-risky-gamble-for-packer\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/12\/new_gty_121113_james_packer.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/12\/new_gty_121113_james_packer.jpg\",\"width\":740,\"height\":385,\"caption\":\"James Packer under pressure after investors fail to show interest in Crown's Las Vegas project. 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