Shopoff Realty Investments, one of the companies behind the project, is confident that the planned hotel is promising enough to draw additional investors. Rising inflation and other economic pressures almost doubled the construction costs, and the funding-related delays may push back the planned late 2024 launch. Despite ongoing difficulties, the developers remain optimistic and will do their best to see the project to its conclusion.
Problems Arose from the Very Start
Dream Hotel Group’s Las Vegas venue started construction in July 2022 with a ceremonial groundbreaking. The project aims to deliver a boutique-style experience, contrasting with the expansive casino resorts most common on the Strip. Once completed, Dream Las Vegas will feature 531 rooms, a selection of unique restaurants, 30,000 square feet of casino space, and many other amenities.
Unfortunately, the project was beset by setbacks from the beginning, suffering financing issues, delays due to the pandemic, and security concerns related to the hotel’s proximity to the airport. Despite the high hopes riding on the project and the successful start of the construction, a lack of funds has once again thrown a spanner in the works.
The Developer Should Soon Secure Additional Funding
Construction works on the property have allegedly halted, as developers Shopoff Realty Investments and real estate firm Contour can no longer pay their dues. On 10 March, the hotel’s main contractor, McCarthy Building Companies, filed a lien notice stating that it had received roughly $43.3 million in payments. However, the company still had to collect nearly $40.2 million for work performed on the project.
Shopoff Realty Investments president and CEO Bill Shopoff stated that the final projected cost of Dream Las Vegas had risen to $575 million, almost double the original $300 million estimate. He blamed the price hike on rising inflation, Federal Reserve interest rate hikes, and ongoing banking industry instability. However, he remained adamant that the builders would receive their dues and that construction would proceed as planned.
They will be paid, and the project will get built.
Bill Shopoff, Shopoff Realty Investments president and CEO
Electrical, steel, and drilling subcontractors have also filed lien notices. According to Shopoff, his company currently owes roughly $30 million. Despite ongoing setbacks, all involved parties wish to see the hotel completed. A new funding scheme is already in the works and should hopefully be sufficient to finish construction.
The owners… are working on a $400 million-plus funding package.
Bill Shopoff, Shopoff Realty Investments president and CEO
The developer hopes to acquire the extra capital within the next few weeks. Shopoff was adamant that the project leaders fully intended to finish the boutique resort and honor their agreements with all parties involved. He expressed confidence that Dream Las Vegas would soon be back on track. However, setbacks plague the project at every step, making its future ever more uncertain.