- Four Hotels, ExpoCenter and Retail Promenade Will Anchor Extensive Complex -
- Bob Boughner to Lead Experienced Development Team -
LAS VEGAS, Jan. 4 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation
(NYSE: BYD) today announced that it will develop a multi-faceted, world-class
resort complex on its 63-acre site on the Las Vegas Strip. The development,
scheduled to open in early 2010, is expected to be among the most significant
projects in Las Vegas' ongoing evolution, which continues to transform the
city into one of the leading resort destinations in the world. The Company
expects that the development will be a significant leader in Las Vegas' key
growth centers of casino gaming, luxury hospitality including world-class
dining and nightlife experiences, shopping, meetings and conventions, and
entertainment.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO)
The $4.0 billion development, to be named Echelon Place, will combine the
$2.9 billion wholly-owned Echelon Resort with hotel and retail joint ventures
between the Company and key strategic partners. The wholly-owned Echelon
Resort will be operated principally by the Company, but include operating
arrangements with leaders in the hotel, restaurant, nightlife and
entertainment industries who will bring unique brands and industry-leading
reputations and relationships to the project.
The development master plan, Echelon Place, is expected to be fully
developed in one phase and integrate several elements:
* Four distinctive hotels featuring 5,300 guest rooms and suites
-Echelon Resort
The Company will own and operate the 3,300-room Echelon Resort,
encompassing two upscale hotels, a 2,600-room Resort Tower and a 700-room
Suite Tower, each containing its own luxurious spa. Both hotels will connect
directly to Echelon's extensive public areas containing a 140,000 square foot
casino, 25 restaurants and bars, and lushly landscaped pool and garden areas.
Echelon will be a contemporary and upscale resort, complemented by extensive,
high quality and innovative business and meeting facilities. Echelon will
include an expansive 4,000-seat theater with a large stage and stadium seating
designed to accommodate major concerts and production shows. In addition, a
more intimate 1,500-seat theater will house smaller shows and touring acts.
-Shangri-La Hotel, Las Vegas
The Company announced it has entered into a management agreement with
Shangri-La Hotels and Resorts, Asia Pacific's leading luxury hotel group, to
include a Shangri-La Hotel within Echelon Place. Synonymous in Asia with
luxurious and comfortable hotel accommodations, fine food and caring service,
the distinct nature of each Shangri-La upscale property demonstrates an
exclusive charm and personality that large chains cannot approximate. The
Shangri-La Hotel, Las Vegas, which will be owned by the Company and operated
by Shangri-La, will include 400 guest rooms and suites, a 20,000 square foot
CHI spa, well appointed premium meeting space and two restaurants. Shangri-La
will have its own porte cochere and lobby.
-Delano Hotel and Mondrian Hotel
The Company has entered into a 50/50 joint venture agreement with the
Morgans Hotel Group, an innovator and continuing leader in the
lifestyle/boutique hotel sector, for the development of two signature hotels
within Echelon Place, Delano and Mondrian, at a cost of approximately
$700 million. During the first half of 2007, the Company will contribute
6.5 acres of land and Morgans Hotel Group, which will manage both hotels, will
contribute $97.5 million in cash to the venture, and the venture will arrange
non-recourse project financing to develop the properties.
Delano in South Beach Miami has been an international destination for
glamour, entertainment, and sophisticated nightlife for over a decade, and
played a catalyzing role in the revival of South Beach. Delano Hotel Las
Vegas will include 600 guest rooms and suites, a destination nightclub, lobby
bar and Asia de Cuba restaurant. It will also feature an Agua Spa with
fitness center, private pool and recreation area, and a separate porte cochere
and lobby.
Today, Mondrian's elegant urban resort is a Hollywood haven for both
business and nightlife. Mondrian Hotel Las Vegas, accommodating equally the
refined business traveler and the leisure escapee, will include 1,000 guest
rooms and suites, a distinctive bar and restaurant, meeting and conference
space, private pool and recreation area with Skybar, and a separate porte
cochere and lobby.
* Las Vegas ExpoCenter
The Company will develop, own, and operate the Las Vegas ExpoCenter at
Echelon Place to meet the growing demand for convention and exhibition space
integrated into large luxury resorts on the Las Vegas Strip. Las Vegas
ExpoCenter will feature 650,000 square feet of exhibition and pre-function
space and 175,000 square feet of meeting and conference space. Combined with
the meeting space within Echelon Resort, the total meeting and exhibition
space at Echelon Place is expected to exceed one million square feet,
highlighted by over 200 meeting rooms.
* Retail Promenade
The Company is in discussions with potential strategic partners for a
50/50 joint venture development of a retail promenade at Echelon Place. Plans
call for over 350,000 square feet of unique shopping, including a mix of
luxury, affordable luxury and bridge retailers, as well as a variety of
dining, nightlife, and cultural experiences.
* Other Master Plan Elements
Echelon Place is master-planned and designed to optimize access and
parking. Entry into Echelon Place will be from three of the four sides of the
property. Valet parking and parking structures will be located conveniently
to all major components of Echelon Place and will provide covered parking for
nearly 8,000 cars. In addition, the master plan includes a three-acre parcel
reserved for future development.
Development Team
The Company announced that Bob Boughner will leave his position at Borgata
in Atlantic City and return to Las Vegas to lead the development of Echelon
Place as President and Chief Executive Officer of Echelon Resorts.
William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming,
commented, "We are very pleased to have Bob return to reprise our success at
Borgata and lead the development of Echelon Place. From concept to design to
construction to opening to operating, Bob's outstanding performance at
Borgata, one of our industry's finest success stories, is widely acclaimed.
In my opinion, there is nobody better for this job."
Joining Bob Boughner from Borgata will be Kevin Sullivan, who after having
managed several key development and administrative areas at Borgata, will
serve as Senior Vice President and Chief Administrative Officer for Echelon
Resorts. Many of the design and construction firms involved in the
development of Borgata are expected to play major roles in the Echelon Place
development, including Tishman Construction Corporation, who will serve as
construction manager.
Bob Boughner commented, "True to the evolution of Las Vegas as a world
class destination, Echelon Place will integrate a compelling collection of
brands and environments in a single and auspicious development. We are
assembling an internationally distinguished group of strategic partners in the
hotel, restaurant, retail, entertainment and nightlife arenas to complement
our Company's own skills and resources. We will draw upon our highly
successful Borgata experience and are committed to developing a resort
destination that can be counted among the best Las Vegas has seen."
The Company also announced that, subject to regulatory approval, Larry
Mullin has been promoted to President and Chief Operating Officer of Borgata
and will be responsible for all day-to-day operations of the property. Bob
Boughner continued, "Larry Mullin has had a distinguished 20 year career in
the gaming industry and has played a vital role in the success of Borgata. We
are extremely confident in his abilities." Bob Boughner will continue to
oversee Borgata's public space expansion project that is scheduled to open in
the second quarter of 2006.
The Company's 63-acre Las Vegas site is currently occupied by the Stardust
Hotel and Casino. The Company expects to operate the Stardust through 2006 as
it advances the Echelon Place planning, design and permitting process. In
connection with the announced intention to discontinue operations at the
Stardust, the Company will record an impairment charge in the first quarter of
2006 in the approximate range of $50 million to $60 million pre-tax.
For additional information and to follow the progress of the development
of Echelon Place, the Company today launched the Echelon Place website,
located at www.echelonresort.com .
The Company will host a conference call and webcast on Wednesday,
January 4, 2006 at 12:30 p.m. EST regarding Echelon Place. The conference
call number is 800.435.1261 and the reservation number is 48893436.
Participants should call up to 15 minutes in advance to ensure a connection
prior to the call's initiation.
The conference call will also be available live on the Internet at
www.boydgaming.com or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-
eventDetails&c=95703&eventID=1189405 .
Following the call's completion, a replay will be available by dialing
888.286.8010 on Wednesday, January 4, beginning two hours after the completion
of the call and continuing through Wednesday, January 11. The passcode for
the replay will be 88873940. The replay will also be available on the
Internet at www.boydgaming.com .
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking statements
can often be identified by their use of words such as "scheduled," "expects,"
"will," "believe," "plan," and "potential," as well as variations of those
words and other comparable words and phrases referencing the future. Such
statements include information regarding the Company's plans, expectations,
goals or intentions regarding the future, including but not limited to
statements regarding the Company's planned Echelon Place development project
and the individual hotel, casino, retail, entertainment, meeting and other
components of the project which are expected to be part of the Echelon Place
resort complex. Forward-looking statements also include statements regarding
the anticipated cost and timing of construction and completion of Echelon
Place and its individual components, the expected size, scope, branding,
management, designs, features (including, but not limited to, the number of
rooms and slots) and various amenities of Echelon Place and its constituent
parts, the anticipated capital contributions in connection with the joint
ventures the Company has entered into or may enter into with respect to
Echelon Place, the Company's expectation that Echelon Place will lead Las
Vegas in certain growth centers, the Company's beliefs regarding demand for
convention and exhibition space integrated into large luxury resorts on the
Las Vegas Strip, and the amount of the impairment charge that the Company
anticipates recording in the first quarter of 2006 in connection with the
announced intention to discontinue operations at the Stardust Hotel and
Casino. Forward-looking statements involve certain risks and uncertainties,
and actual results may differ materially from those discussed in any such
statement. The Company can provide no assurances that Echelon Place will be
completed within the Company's current timing or cost estimates, commence
operations when expected, include all of the anticipated amenities, features,
facilities or strategic partners, or that it will achieve market acceptance.
All references to cost estimates, expected size, scope, branding, management,
designs, features (including, but not limited to, the number of anticipated
rooms and slots) and the various amenities of Echelon Place and its
constituent parts are based on the Company's current estimates and plans, and
are all subject to change. In addition, the Echelon Place development project
is subject to those risks inherent in the development and operation of a new
business enterprise, including unanticipated design, construction, regulatory,
environmental and operating problems and lack of demand for the project. If
the Echelon Place development project does not become operational within the
time frame or project cost currently contemplated or does not successfully
compete in its market, it could have a material adverse effect on the
Company's business, financial condition and results of operations. Once
Echelon Place becomes operational, it will face many of the same risks that
the Company's current properties face. The Company's anticipated costs and
construction period for the Echelon Place development project are based upon
budgets, conceptual design documents and construction schedule estimates
prepared by the Company in consultation with its architects and contractors.
The cost of any project, including Echelon Place, may vary significantly from
the Company's expectations, and the Company may have a limited amount of
capital resources to fund cost overruns on any project. If the Company cannot
finance cost overruns on a timely basis, the completion of one or more
projects, including Echelon Place and some or all of its constituent parts,
may be delayed until adequate funding is available or may be discontinued. In
addition to the ability to obtain necessary permits, competition, increased
costs (including marketing costs), financial community and rating agency
perceptions of the Company, changes in laws and regulations, including
increased taxes, the availability and price of energy and fuel, weather,
economic, credit and capital market conditions and the effects of war,
terrorist or similar activity, additional factors that could cause actual
results to differ from those expressed in forward-looking statements are
discussed under the heading "Investment Considerations" and in other sections
of the Company's Form 10-K for the fiscal year ended December 31, 2004 on file
with the Securities and Exchange Commission, and in its other current and
periodic reports filed from time to time with the Commission. All
forward- looking statements in this document are made as of the date hereof,
based on information available to the Company as of the date hereof, and the
Company assumes no obligation to update any forward-looking statement.
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a
leading diversified owner and operator of 19 gaming entertainment properties,
located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana.
The Company recently opened the South Coast Hotel and Casino, a $600 million
development located in the growing southern part of the Las Vegas valley. The
Company was also recently recognized by Forbes Magazine as the best managed
company in the category of Hotels, Restaurant and Leisure. Boyd Gaming press
releases are available at www.prnewswire.com. Additional news and information
on Boyd Gaming can be found at www.boydgaming.com .
* Press Contacts
Rob Stillwell
Vice President Corporate Communications
Boyd Gaming Corporation
Tel. 702.792.7353 direct line
Email: robstillwell@boydgaming.com
Website: www.boydgaming.com
Wendy Watson
Senior Vice President
Porter Novelli
Direct Line: 310-444-7087
Email: wendy.watson@porternovelli.com
Website: www.porternovelli.com
Lori Lincoln
Director of Public Relations, North America
Shangri-La Hotels and Resorts
Tel: (212) 382-3155
E-mail: lori.lincoln@shangri-la.com
Website: www.shangri-la.com
SOURCE Boyd Gaming Corporation
01/04/2006
CONTACT: Rob Stillwell, Vice President Corporate Communications of Boyd
Gaming Corporation, +1-702-792-7353, robstillwell@boydgaming.com; or Wendy
Watson, Senior Vice President of Porter Novelli, +1-310-444-7087,
wendy.watson@porternovelli.com, for Boyd Gaming Corporation; or Lori Lincoln,
Director of Public Relations, North America of Shangri-La Hotels and Resorts,
+1-212-382-3155, lori.lincoln@shangri-la.com
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Web site: http://www.porternovelli.com
Web site: http://www.echelonresort.com
Web site: http://www.shangri-la.com
Web site: http://www.boydgaming.com
(BYD)
