Oft-Delayed Las Vegas Strip Casino Gets $2.2 Billion in Funding

A massive Strip project nearly 20 years in the making moves closer to its once-improbable opening.

Not every idea planned or even announced for the Las Vegas Strip ends up getting built. Some never even get past the talking stage because it takes billions actually build something on Sin City’s iconic 4.2-mile stretch of road.

The high price tag means that some projects get announced as a way to make it easier to raise money to actually build them. Sometimes that’s literally the last you hear of the project because it’s fairly hard to convince investors to put up the money to compete with Caesars Entertainment (CZR) – Get Free Report, MGM Resorts International, and Wynn Resorts (WYNN) – Get Free Report.

In most cases, that’s why projects like the multiple planned NBA-ready arenas and a potential home for the Oakland Athletics get talked about but nobody takes them all that seriously. Yes, an NBA team or the Major League Baseball team may move to Las Vegas and if that happens a Strip arena or stadium would be needed.

But, while those sports teams are theoetical, so are the construction projects because nobody puts up billions of dollars for what might happen.

Some projects, however, get started but run out of money. When that happens new owners may step in or the project may simply sit as a stark reminder that making a bet on the Las Vegas Strip can always leave you broke. Both of those scenarios have happened with Fontainebleau Las Vegas. The project has changed hands multiple times, and it has periods where work ground to a halt when the current owner ran out of money.

Now, like some sort of Vegas cat, the Fountainbleau appears to be on track once again.

A Las Vegas Strip Casino 20 Years in the Making

The Fountainbleau project has literally taken 20 years, but the delay may in some ways be fortuitous. Caesars and MGM dominate the south and central strip while Wynn has a strong foothold in the center.

It was only recently, with the launch of Resorts World Las Vegas that the north end of the Strip seems like a viable location for a higher-end resort casino. Previously that section housed the seen better days Circus Circus and the Strat — two properties that are hardly destinations.

It was (and still somewhat is) an area full of promise but mostly filled with vacant lots, sketchy shopping plazas, and lower-end restaurants. While you can walk between all the Caesars and MGM properties on the south and central sections of the Las Vegas Strip, Resorts World is sort of an Oasis in a wasteland.

Fountainbleau won’t make the north Strip as vibrant as the south and central strips, but it will provide another anchor tenant (so to speak) to drive tourists that way. Now, the long-gestating project has ended up back in the hands of its original owners who have planned a late-2023 opening.

Until recently, that date was more dream than reality as funding remained a question. Now, the resort casino’s owners have fully answered that question.

Fountainbleau Raises $2.2 Billion

Fontainebleau Development, the current owner of the in-process resort/casino has partnered with Koch Real Estate Investments (KREI), the real estate investment arm of Koch Industries, and has landed a $2.2 billion construction loan to complete Fontainebleau Las Vegas. That deal will keep the “67-story hotel, gaming, meeting, and entertainment destination” on schedule and paves the way for Fontainebleau Las Vegas to make its debut in the fourth quarter of 2023.

“This is a milestone for Fontainebleau Las Vegas and stands as a testament to the tremendous dedication of our team and our partners at Koch Real Estate Investments,” says Fontainebleau Development President Brett Mufson. “We are eager to bring our iconic Fontainebleau brand — timeless beauty, unparalleled service, and innovative design — to the Las Vegas Strip.”

Once complete Fontainebleau Las Vegas will cover 25 acres and nine million square feet directly adjacent to the Las Vegas Convention Center. It will feature approximately 3,700 luxury hotel rooms, 550,000 square feet of customizable convention and meeting space, and a “world-class” collection of gaming, dining, retail, lifestyle, and health and wellness experiences, according to its owners.

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