Boyd Gaming announced today they will cease further construction on the $5 billion Echelon Place project located at the old Stardust site on the Las Vegas strip. The project laid off more than 800 construction workers and the job is expected to remain idle for a year or more.
Boyd Gaming cited the current economic condition and concern that two of the Echelon minority partners, Morgan Hotel Group and General Growth Properties, could arrange suitable financing for their portion of the project. After the announcement Boyd Gaming stock went up 20% as speculators found this news to be a positive move. Financial observers have believed the project would not prove to be profitable, especially in the current Las Vegas economic downturn. Boyd Gaming stock has seen a 72% drop since the first of the year. Boyd also announced a $100 million stock buy-back plan.
The company indicated they will concentrate their interest on the existing Las Vegas resorts that mostly serve the locals market. Boyd Gaming is also a partner in the east coast Borgata Resort located in Atlantic City. They also operate successful gaming operations in Illinois, Indiana, Louisiana, and Mississippi.
Long time Las Vegas locals remember Boyd Family patriarch, the late Sam Boyd, and his son Bill as the team that built Sam’s Town, the first major property designed especially for local players. They also remember the coffee shop offered under $5 prime rib dinners served around the clock.