CIRCUS CIRCUS ANNOUNCES PLANS FOR NEW ENTERTAINMENT RESORT
LAS VEGAS, Nov. 14 /PRNewswire/ -- Circus Circus Enterprises, Inc. (NYSE: CIR) today announced that it will build a 2,500-room hotel, casino and entertainment complex on the Las Vegas Strip adjacent to Excalibur.
This new resort will be a soaring pyramid, featuring a dramatic exterior of bronze reflective glass and presenting a 30-story interior atrium. Hotel rooms, including suites, will overlook this atrium with striking views of the property's numerous movie-like sets and various entertainment attractions.
Emphasizing the magical qualities of the timeless pyramid, the resort will evoke a theme of exploration -- the pyramid itself serving, in essence, as a "vehicle" that transports its visitors to "extraordinary and mysterious places of times past and future," said William G. Bennett, chairman and chief executive officer.
The interior architecture, on two levels, will contain elaborate "sets" for a series of "interactive" or "participatory" adventures, involving state-of-the-art movie technology, surrounding the 90,000 square-foot casino. Restaurants will be situated among the different worlds that modern-day adventurers will discover. Mythical hologram- like characters will greet visitors as they are transported in the pyramid by means such as an immense "spaceship," which simulates a takeoff as it elevates passengers to the second level, or by watercraft that will float the interior perimeter.
The resort currently goes by a working title -- "Project X." A team of Circus executives and outside consultants will create an original and permanent name, reflecting the resort's elements of spectacular action, adventure, exploration and mystery.
The company's most recent major project, Excalibur, a 4,000-room megastore featuring a medieval castle theme, opened on the Las Vegas Strip in June 1990, and has posted occupancy rates close to 100 percent. It has also achieved one of the highest rates of return ever by any major property in the industry.
Project X will be the company's third entertainment megastore on the Las Vegas Strip. It will be positioned somewhat higher than Excalibur and Circus Circus-Las Vegas, but still scaled to attract a broad segment of the middle market. "Given this new property, our coverage of the mainstream market will be comprehensive, with three resorts that accommodate all segments form the family-budget to the upper-middle at the best value," Bennett said.
Project X will cost approximately $270 million to $290 million. The company already owns the 47-acre site on which the resort will be situated.
The company will require no financing for Project X. "Over the next two years, we can fund this entire project form our internal cash flow, with substantial free cash flow left over," Bennett said. Circus also currently possesses revolving line of credit in excess of $500 million through a group of money-center banks -- more than $375 million of which remain undrawn and immediately available. Circus is, moreover, the sole gaming company with an investment-grade credit rating.
Construction of Project X is scheduled to begin in the first half of 1992 and the resort is slated to open in autumn 1993. "Of the recently proposed projects in Las Vegas, we expect Project X will be the first to open for business," Bennett said.
Circus Circus Enterprises Inc. operates seven properties in Nevada: Excalibur; the Circus Circus resorts in Las Vegas and Reno; the Colorado Belle and Edgewater in Laughlin; and Slots-A-Fun and Silver City in Las Vegas.
Fact Sheet - Project X
Theme: Of the imagination: adventures and explorations in
different times, places and dimensions, presented
in a 30-story bronze reflective pyramid.
Site: Approximately 47 acres adjacent to Excalibur on the
southern end of the Las Vegas Strip, 10 minutes
from McCarran International Airport. Connected to
Excalibur by entrance-to-entrance monorail, one-
quarter mile in route length.
Cost: $270 million - $290 million
Financing: None necessary. Circus will fund construction from
its free cash flow.
Position: Scaled a notch above Excalibur and Circus Circus-
Las Vegas, aimed toward the upper bracket of the
mainstream, middle market. Emphasis, as always,
on "extra" value for the price.
Schedule: Approximately 18 months of construction to begin in
spring 1992; opening in autumn 1993.
Jobs: Approximately 3,000.
Rooms: 2,500 including suites.
Space: 90,000 square feet.
size: 2.8 million square feet.
Features: Hanging Gardens of Babylon at front entrance;
lagoon-like pools and beach at rear entrance;
interior waterways. Intensive water conservation
and re-cycling methods will be utilized.
Attractions: A series of "participatory" high-impact adventures
involving cutting-edge movie technology; transport
by "spaceship," monorail and watercraft; highly
themed "on set" restaurants; mysterious scenery
and artifacts, dramatized with state-of-the-art
special effects; 1,200-seat oval-shaped showroom,
equipped with multiple entertainment capabilities;
intriguing cast of players, guides, entertainers
and denizens of other dimensions.
/CONTACT: Jill Levy or Nancy Fletcher of Fleishman Hillard Inc., 213-629-4974, for Circus Circus/
(CIR) CO: Circus Circus Inc. ST: Nevada IN: CAS SU: NS-AL -- LA021 -- 4525 11/14/91 15:35 EST