Permits sought to build world's largest hotel in Las Vegas

Recession or not, a joint venture led by a financially struggling Israel-based development group plans to build the world's largest hotel in Las Vegas.

A holding company that includes the AFI Group, formerly known as Africa Israel Group, is scheduled to ask Clark County commissioners today for use permits to build a 6,745-room hotel, casino and retail complex on 60 acres along Harmon Avenue west of the Hard Rock Hotel.

The largest hotel in the world now is the 6,118-room First World Hotel in Malaysia. Many of the largest hotels in the world are already in Las Vegas, including the 5,690-room MGM Grand, the 4,408-room Luxor and the 4,341-room Mandalay Bay and The Hotel resorts.

The permits would give the group two years to begin construction on the project or seek an extension.

Approval of the permits would allow the development group to go to investors and banks seeking financing for the project. No price on the project was available.

Bill Lerner, a gaming analyst with Deutsche Bank, said it is surprising to see someone pursue such a large project in the current credit markets.

"Greenfield development (building from the ground up) in this environment is a difficult strategy to achieve returns in excess of cost of capital," Lerner said.

The project is listed on the AFI Group's Web site as "Edge (Las Vegas)" with a short description saying construction is planned over three phases.

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Source - LAS VEGAS REVIEW-JOURNAL

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