Analysts say resort will open unfinished like the Venetian did

Friday, July 14, 2000 | 10:54 a.m.

Aladdin Gaming LLC's $1.4 billion megaresort on the Las Vegas Strip likely will open next month unfinished with heavy construction under way, analysts told Bloomberg News.

The Aladdin opening is likely to resemble last year's opening of the Venetian, said Bear, Stearns & Co. analyst Marc Falcone, who recently toured the Aladdin.

Construction under way during the opening of the Venetian caused many guests, shoppers and diners to initially stay away.

Aladdin executives have acknowledged that construction isn't likely to be complete when they open the resort on Aug. 17, Deutsche Bank Securities analyst Andrew Zarnett said.

Some 1,500 of the property's 2,600 hotel rooms will be open and some restaurants and other amenities also won't be ready, he said.

Opening the resort with construction under way is likely to raise fears that the Aladdin will have trouble meeting interest payments on its debt. Park Place Entertainment Corp. of Las Vegas has purchased Aladdin bonds and analysts say Park Place Chief Executive Arthur Goldberg could negotiate to convert the bonds into an equity stake should Aladdin default on its debt.