Harrods’ Las Vegas rumors stirring again

David Strow

Tuesday, Feb. 27, 2001 | 11:12 a.m.

Speculation that wealthy Harrods department store owner Mohamed Al Fayed is eyeing Las Vegas is heating up, following a financing maneuver involving the British retailer's main London store.

The Guardian newspaper in the United Kingdom reported Monday that Al Fayed has raised 350 million pounds ($506 million) by mortgaging the Harrods Knightsbridge store in London with the Royal Bank of Scotland. The paper quoted an Al Fayed spokesman as saying that Al Fayed was "looking at one or two exciting possibilities worldwide (and) we thought we'd go for it."

The only specific possibility mentioned by the spokesman was helping bankroll Al Fayed's professional soccer team. But the paper also said the deal "could release tentative funds to build a hotel and casino complex in Las Vegas, with a theme around Harrods and Mr. Fayed's Ritz hotel in Paris."

Harrods officials downplayed the possibility that the financing move meant a Las Vegas deal was imminent.

"We're talking about a switch in banking facilities, from one bank to another, in 2000," said Harrods director Charles Wardle. "The idea that there's a whole new departure in strategy is simply media speculation. It's absolutely correct to say a lot of opportunities are always being brought to Mr. Al Fayed, including some in your country. But there is nothing specific at the moment."

When asked if those opportunities could include a Las Vegas property, Wardle responded, "Not as we sit here now, nothing firm at the moment."

In the past, Mandalay Resort Group and MGM MIRAGE have been the leading names in speculation involving Harrods and Las Vegas. In October, Mandalay Resort Group officials confirmed they'd had early talks with Harrods, presumably about opening a store at a proposed 1.2 million-square-foot mall between the Mandalay Bay and Luxor hotel-casinos on the Las Vegas Strip. Since that time, the company hasn't said if those talks have progressed further.

Al Fayed has also said previously he's had conceptual talks with MGM MIRAGE about building a hotel-casino and shopping center themed on the Harrods Knightsbridge store -- a "1 million-square-foot copy of the London landmarks surrounding by towering skyscrapers" on the Las Vegas Strip.

"We too have heard the speculation about Harrods coming to Las Vegas, and we think it's a wonderful idea," said MGM MIRAGE spokesman Alan Feldman. "If an opportunity were to develop to work with Mr. Fayed, we'd welcome that. But we're not currently in discussions about a project."

There are numerous other new developments in Las Vegas that could be pursued by Al Fayed. Turnberry Associates has filed plans to build a huge London-themed resort casino on the old El Rancho site, and a group of developers operating as New World LLC are marketing 77 acres of land on the south end of the Strip. New World has also presented a London theme as a possible concept, and company officials hope to land partners to help them develop several casinos on the land parcels.

"We'd love to hear what he (Al Fayed) would have to say," said David Gaffin, a principal with New World. But he declined to say if New World and Harrods had actually had discussions.

Another pending development is Steve Wynn's plans to transform the Desert Inn into a 52-story, 2,300-room hotel-casino complex. Wynn and Al Fayed held friendly discussions in 1996 about placing a full-sized Harrods in the Bellagio, but were unable to come to an agreement.

A source familiar with Wynn says it shouldn't be ruled out that the two are talking again, but it isn't known if the two are currently in talks about the Desert Inn site.