Condo Hotel Center: Property Alert

January 19, 2006

W Las Vegas Hotel, Casino and Residences

Get in at "Pre-public VIP Pricing"

Hello. Joel Greene here with today's featured property. I am delighted to tell you that this condo hotel is not yet officially on the market yet. Condo Hotel Center has been given a head start on selling its units at "pre-public VIP pricing." You, our Property Alert subscribers, qualify as VIPs, so here are the details about this first-class, pre-construction opportunity.

The W Las Vegas Hotel, Casino and Residences will be a four-star, $2.5 billion development that will include a mix of hotel and condo hotel units. It will be located on the corner of Harmon and Koval, less than a half mile east of The Strip.

An Immense Project
The W Las Vegas will embrace the stylish, signature comforts W is renowned for, including striking architecture, multiple restaurants, exhilarating nightlife and a destination spa. The development will be the brand's first casino and will become their flagship property. Highlights of the project include:

• 2,000 rooms, approximately 500 of which will be condo hotels
• 80,000 sq. ft. casino
• 50,000 sq. ft. Bliss® spa & gym
• 10 or more destination dining & nightlife outlets
• 100,000 sq. ft. of world-class retail
• 300,000 sq. ft. conference center & meeting space

The W Las Vegas will be a $2.5 billion development on 24.5 acres just 1/2 mile east of The Strip.

A Joint Venture Between Two Respected Developers
Edge Resorts bought the 24.5 acres of prime land near the Strip two years ago for $108.2 million and began negotiations with Starwood to develop the property. Starwood owns the Sheraton, Westin, and St. Regis hotel chains as well as nearly two dozen W properties around the world.

W's most requested destination among its existing customers was Las Vegas, one of the few major tourism areas in which they didn't own property, and they had their eye on Harmon Avenue.

Edge quickly realized the synergistic benefits of partnering with the W brand, and a relationship was born. Edge and Starwood, formed a new company, Edgestar Partners. Edge Resorts owns 75% of the venture; Starwood owns the remainder and will manage the hotel.

A Boutique Destination, The Harmon Corridor
W Las Vegas is planned for the northeast corner of Harmon and Koval, less than a half mile east of The Strip and 1.5 miles northwest of McCarran International Airport. It will be located within the newly developing Harmon Corridor, a trendy "boutique destination" which is anchored by the Hard Rock Hotel and Casino to the east and Palms Casino Resort to the west.

Over $18 billion is slated to be invested in the development of 16 properties in the Harmon Corridor over the next few years, including high-end casino-hotels, residential buildings and high-rise residential condominiums and condo-hotels.

The Harmon Corridor is poised to become the next Strip, with 16 new properties totalling $18 billion under development.

Aside from W Las Vegas, major projects in the planning stages or under construction include MGM Mirage's Project CityCenter, Cosmopolitan, Palm's Place, Planet Hollywood, Westgate Timeshares, MGM Grand, Turnberry Residences and the Hard Rock Hotel expansion.

"This project combines the hottest, most sought-after hotel brand in the world with one of the most vibrant hospitality markets in the U.S.," said Edge Resorts President Adam Frank. "W Las Vegas will be the cornerstone property of the 'Harmon Corridor,' an area quickly becoming the location of choice for new development in Las Vegas."

Jim Murren, President and CFO of MGM Mirage, recently stated that he has never seen such "frenzy" over a small piece of the world in 14 years on Wall Street and seven years in Las Vegas. Murren states "Harmon will become, I believe, something along the lines of Madison Avenue or Park Avenue if you relate it to New York."

The W Brand
W Las Vegas will be the largest property in the W Hotels Worldwide portfolio of hotels and resorts. The W brand is recognized throughout the world as a premier hospitality and lifestyle offering. Featuring iconic architectural design, coupled with cool and chic interior furnishings and finishes, W Hotels create an experience that caters to a sophisticated and affluent customer.

W Hotels is the fastest growing luxury hotel brand in the world with 20 existing properties in operation and more than 20 additional properties under development worldwide, including Hong Kong, Hollywood and Barcelona. The power of the brand, fused with the appeal of the destination, should raise the bar in this already extraordinary entertainment market.

Luxurious Condo Hotel Units
Studios at W Las Vegas will be about 500 sq. ft., and one-bedroom units will be 750 and 1,000 sq. ft. They will offer panoramic views of The Strip. There will also be about 50 specialty units that will range from 800 sq. ft. to 2,400 sq. ft. and will include poolside bungalows and penthouses.

The W Las Vegas offers a selection of studio and one-bedroom condo hotel units and a small selection of poolside bungalows and penthouses.

These fully-furnished condo-hotel units, with contemporary interiors created by acclaimed designer Charles Allem, will resemble the hotel guestrooms but will also offer a wide array of luxury amenities.

• Fully-equipped kitchens with high-end appliances
• Media-style audio/visual including flat panel TVs, DVD, MP3 player, etc.
• High-speed Internet access
• Ample closet space
• Oversized showers
• Electronically-controlled sheers and drapes
• Concealed printer/fax/scanner, combination

The condo hotel units at the W Las Vegas will feature a contemporary design and luxury amenities.

Casino & Conference Center
The casino is planned to be adjacent to the W Las Vegas Hotel lobby and to be marketed to attract a broad base of patrons with a focus on upper-middle market slot and table games customers.

The gaming facilities will include slot machines, traditional games like Blackjack and Craps, and popular progressive table games such as "Caribbean Stud Poker" and "Let it Ride." I've never played them myself but have watched others over their shoulders. Me? I'm strictly a Black Jack kinda guy.

Rounding out the portfolio will be an upscale sports book room within a sports bar/restaurant, and a high-energy and unique poker room offering gamers a full menu of selections.

A 300,000 sq. ft. conference center will be positioned to attract high-end meetings and special events in the area. It will offer upscale meeting facilities able to accommodate large-scale multimedia events.

Bliss Spa, Fitness Center & Multiple Pools
W Las Vegas will include the world-renowned Bliss Spa as well as a state-of-the-art fitness center. Founded in 1996, Bliss spas are known for their simple elegance and Zen healing treatments.

The W's sleek design will carry over to its pools, large deck, poolside bars and outdoor entertainment venue.

A planned focal point for W Las Vegas is an expansive pool deck, with several individual pools spread out over a number of different levels. There will also be numerous outdoor bars, bungalows and private cabanas.

A portion of the pool area is intended to serve as an entertainment venue, hosting concerts and parties. It will be adjacent to the nightclub/lounge, and its design will allow for outdoor events.

A portion of the large W Las Vegas pool area will often be used for outdoor events like concerts and parties.

Vegas Showroom & Retail Outlets
The W Las Vegas will have a theater and show venue featuring high-end performances from top celebrity entertainers.

It is anticipated that the showroom will generate demand for rooms and will also appeal to The Strip customers and locals, thereby bringing non-resident business to W Las Vegas.

Also planned is a retail collection designed to turn the W into a premier boutique shopping destinations. A W Store is the planned anchor and will provide a complete array of shopping items from in-room furniture and fixtures to signature apparel and gifts. Other retailers will include high-end clothing, jewelry, electronics and technology-driven products, and one-of-a-kind designer label outlets.

Las Vegas Is Growing Up
Las Vegas, an ever-changing fantasy-land of a city, has seen unbelievable expansion since it emerged from the desert 100 years ago and particularly in the last five years.

Known historically for its gaming experience, the Las Vegas landscape has changed considerably over the past decade with the opening of destination mega-resorts including The Venetian, Wynn Las Vegas, Bellagio and Mandalay Bay.

The effect of these openings has been to broaden Las Vegas' traditional market by appealing to a new customer base consisting of leisure tourists interested not only in gaming but dining, entertainment, shopping and other lifestyle experiences as well.

Las Vegas, with its conventions, casinos and entertainment, attracts over 38 million visitors per year.

Las Vegas is the largest gaming market in the world and one of the fastest growing leisure, lodging and entertainment markets in the country. According to the Las Vegas Convention and Visitors Authority, the number of visitors traveling to Las Vegas has continued to increase at a steady and significant rate from approximately 23.5 million in 1993, to a record 38.2 million in the 12 months ending August 31, 2005.

Las Vegas is also the fastest growing convention market in the country. Hotel occupancy rates average 89% per year, the nation's highest. All of this bodes well for condo hotel unit owners who want to be sure their units will be rented out when they're not using them.

Prices for W Las Vegas Condo Hotel Units
Here are the current prices for the two main types of condo hotel units available at the W Las Vegas. Exact prices are determined by factors like the floor (higher costs more) and the view of the individual unit you ultimately select.

There will also be about 50 specialty units including poolside studios and penthouses. No firm details on the size or price of these specialty units is available at this time. If you could be interested, please let me know.

This Project Will Go Forward
It's been in the news lately that the developers of some projects in Vegas, both condo and condo hotel, have decided not to go forward with their developments, citing rising construction costs as the main reason why they are returning buyer deposits. In this particular case, we have all the confidence in the world that W Las Vegas will go forward because the principals are extremely strong, and more importantly, they have already secured their financing of $232.5 million.

A syndicate of banks is providing the funding. It represents a resounding vote of confidence in W Las Vegas Hotel, Casino & Residences and its ability to lead the new wave of significant projects planned for Las Vegas.

Construction is expected to begin in June 2007 and to be completed by late 2009.

Deposit Requirements
Reservations are being taken now with a fully refundable deposit. Reservations are for non-specific units. Actual unit selection will take place in mid June. Again, we're telling you about this project super-early so it will be a couple of months before details are finalized.

Current deposit amounts are $10,000 for a studio and $15,000 for a one bedroom.

Upon signing a contract, expected to occur in mid-2006, buyers will be required to put down 10% of their purchase price. A second 10% is due when construction begins, approximately June 2007.

Request a Detailed Data Sheet
I've put together a data sheet to give you more of the details of W Las Vegas if you're potentially interested in buying a unit. We do ask that you provide your full name and contact information in accordance with developer requirements.

Request W Las Vegas data sheet here.

Read an update on W Las Vegas here.

New Condo Hotel Website Launched
Before I wrap up today's Property Alert, I did want to make you aware of a new website we've just launched. It's dedicated to condo hotels in Dubai, United Arab Emirates, www.CondoHotelsDubai.com. We opted to build an entire site on this niche topic for a number of reasons:

1) The Dubai market is growing so fast. Those who get in now will likely do very well.

2) Dubai is the most progressive market we've seen outside of the U.S. in terms of developing condo hotels. The developers, most of them oil-rich sheiks, love the condo hotel concept, and are planning to do many more condo hotel projects. Even Donald Trump, an American sheik if ever there was one, has announced that he will be building a huge condo hotel in Dubai.

Also, we know that Sol Kerzner, developer of the Hotel Atlantis and The Residences at Atlantis in Paradise Island, Bahamas is building another Hotel Atlantis in Dubai. Wouldn't surprise me one bit to hear an announcement that he is adding an adjacent condo hotel in the near future. Again, those investors who get in at this early stage in Dubai's development will likely see the greatest returns.

3) Property in Dubai is moving extremely quickly, selling to buyers from all over the world. Consider this: the Arabian Crowne condo hotel which we featured in a previous Property Alert has already sold 90% of its units, and the Windsor condo hotel has sold 79% of its units. Those properties have been on the market less than five months!

4) The potential for real estate appreciation in this rapidly-developing region is phenomenal.

5) Prices are extremely reasonable. You can still buy a one-bedroom condo hotel unit in a five-star property in the low $200s and a two-bedroom unit with over 1,100 sq. ft for under $300,000!

I hope you'll take a look at our Dubai site, www.CondoHotelsDubai.com. You can also read our original Property Alert on Dubai here, http://www.condohotelcenter.com/alerts/dubai.htm.

Wrap-up
Thank you for your interest in our Property Alerts and news from Condo Hotel Center. Please feel free to forward this report to friends. We are always trying to grow our "Condo Hotel Friends and Family."

Have a great day!

Joel Greene, Broker-Associate
Condo Hotel Center
A Division of Sheldon Greene & Assoc., Inc.
Licensed Real Estate Broker
13499 Biscayne Blvd., Ste. 210
N. Miami, FL 33181
PH: 305-944-3090
FX: 905-948-0460
Info@CondoHotelCenter.com
www.CondoHotelCenter.com

© Copyright 2006.

*All rights reserved. No portion of this Property Alert may be reproduced, exhibited or distributed without the express written permission of Condo Hotel Center. Although Condo Hotel Center believes the information contained in this Property Alert to be accurate and complete, Condo Hotel Center can make no such guarantee.