construction:

Company puts Desert Blue timeshare project on hold

Despite delay, Wyndham says 19-story project still a ‘priority’

Richard Brian

Wyndham’s timeshare unit said Tuesday it’s suspending construction on its high-profile Desert Blue resort in Las Vegas.

By Steve Green (contact)

Tuesday, Feb. 17, 2009 | 2:30 p.m.

Construction Stops on Desert Blue

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Wyndham announces new Las Vegas resort (4-8-08)

Wyndham Desert Blue

Desert Blue resort

Four days after lodging giant Wyndham Worldwide Corp. reported a huge loss because of the economic slowdown, Wyndham's timeshare unit said Tuesday it’s suspending construction on its high-profile Desert Blue resort in Las Vegas.

The Wyndham Vacation Ownership resort near the Rio hotel-casino is planned to consist of 19 stories with 281 condominium-style units. Martin-Harris Construction Co. and its subcontractors had completed the building shell on the 14.75-acre site, which has a high profile because of its proximity to Interstate 15, the Las Vegas Strip and Flamingo Road.

"We have temporarily suspended construction," said Lisa Burby, vice president of corporate communications for Wyndham Vacation ownership. "This is a temporary situation. Desert Blue remains in our plans. It’s still a priority for us."

Wyndham Worldwide of Parsippany, N.J., one of the nation’s largest hotel companies with brands such as Days Inn, Hawthorn, Ramada and Super 8, on Friday reported a loss for the fourth quarter ended Dec. 31 of $1.356 billion, or $7.63 per share, because of $1.378 billion in noncash charges for restructuring and writing down the value of assets because of the recession.

Net income before the special charges for the quarter of $84 million, or 47 cents per share, was up slightly from the 2007 quarter.

"There are several special items in the fourth quarter results for 2008, including a goodwill impairment charge, restructuring costs and foreign currency conversion losses. If you remove those items, Wyndham Worldwide produced operating income growth in the fourth quarter and full year 2008. These positive operating results reflect our resilient business model and proactive efforts by the management team to reduce costs, improve productivity and grow market share,” Chief Executive Stephen Holmes said in a statement.

In Las Vegas, Wyndham is a big employer with some 1,650 Vacation Ownership workers at four resorts and in corporate offices. With the completion of Desert Blue, Wyndham had planned to have up to 2,400 units in Las Vegas associated with its portfolio of products. The company trimmed its local workforce by about 115 jobs in late 2008 as it downsized in response to the economic slowdown.

Burby stressed that the suspension of work on Desert Blue is temporary, but said there is no forecast on when work would resume or be completed. The original completion date had been announced as early 2010.

She said Las Vegas remains an important market for the company and that there’s still demand for vacation properties.

"People are still going on vacation. People want to use their timeshares," she said. "By and large our operations in Las Vegas remain the same."

Steve Green can be reached at 990-7714 or steve.green@hbcpub.com.

Discussion: 12 comments so far…

By gqbossing

2/17/09 at 3:16 p.m.

Suggest removal

I wondered what the were building there, too bad as it was looking like they were making quite progress on that side of the highway which is a bit blighted
By neiman1

2/17/09 at 3:52 p.m.

Suggest removal

When will a demand for condo's come back to Las Vegas. Our emptiness index is number one in the county and the leader in chief declares visits here by companies is no longer acceptable.
By redferret

2/17/09 at 4:22 p.m.

Suggest removal

wow, how much more are you going to misquote Obama on that neiman. I mean between your racist rants about the Mexican illegal hordes overwhelming us to the no longer viable rant on energy. When are you going to get things straight?
Obama said it is horrible for companies on the federal dole to hold lavish "conventions" aka junkets to their top men with tax payer money. What part of that statement is anything like what you wrote? Your stupid rants with no substance just makes you look like an unrepentant Bush worshipper who hasn't changed gears yet.
By vegasgurl4fun2

2/17/09 at 7:22 p.m.

Suggest removal

Wow, what is going to happen with all the skeleton buildings that are out of the ground: Spanish Towers, Manhattan West, Desert Blue, Echelon, etc.? Not good!
By gotjobs

2/17/09 at 7:58 p.m.

Suggest removal

redferret,

Since you seem to be one of the critic editors here

"You can't get corporate jets. You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime, " President Barack Obama said
By bdover

2/17/09 at 9:34 p.m.

Suggest removal

Timeshares are like a pretty woman-you get all excited when you first meet them, but at the end of the experience, you realize that you should have just said "Thanks, but no thanks". If there's anything snarkier than a timeshare salesperson, they're in prison.
By jfnance32

2/17/09 at 9:45 p.m.

Suggest removal

Wow.....Why did Professor Obama have to use the words "Las Vegas"?

He is an idiot to mention a name of a city in a negative context and that city is full of voters.

He needs to go back to being a state senator to get some more of that presidential prep experience.

He is kinda of wet behind the ears.
By RPJ

2/17/09 at 10:49 p.m.

Suggest removal

Obama called out Vegas by name. Poor judgement for a president to attack an American city, period, end of story.
By johnevegas

2/18/09 at 3:49 a.m.

Suggest removal

"Timeshares are like a pretty woman..."

Thanks, but no thanks? That's what you should say to a pretty woman?

I must need another cup of Joe. I don't get it.
By Sunvisitor

2/18/09 at 6:04 a.m.

Suggest removal

As Jon Ralston said, Get Over It. End of story.
http://www.lasvegassun.com/news/2009/feb...
By daysinn2905

2/18/09 at 3:48 p.m.

Suggest removal

Wyndham Worldwide Corporation should fail with the current economic conditions, because of its treatment of franchisees. It has created a bad reputation with its oneside 15 years contracts and forcing franchisees to use "preferred vendors" who charge 3 times what others charge, so they can get a kick-back. You can read more directly from hotel owners at: www.o8a.org
By leftiebob

2/19/09 at 3:29 a.m.

Suggest removal

Las Vegas is increasingly empty. All sorts of high end projects under construction are coming to completion soon. Are there that many buyers for these high end places in light of the real estate and stock market downturns ? The business model these capitalists employed is badly flawed and Las Vegas will suffer from it.