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Marathon, Global Hyatt to Recap $3B Cosmopolitan

LAS VEGAS-Global Hyatt Corp. and New York City-based Marathon Asset Management agree to shore up the 3,000-room, 4 million-sf condominium-hotel project.

By Brian K. Miller | Updated on February 28, 2008

LAS VEGAS-Several weeks after a construction loan default, Global Hyatt Corp. and New York City-based Marathon Asset Management have agreed to provide the equity necessary to keep Ian Bruce Eichner’s $3-billion Cosmopolitan Resorts & Casino moving forward toward its scheduled completion in late 2009, according to an official with the project.

In a story published Thursday in the Review Journal newspaper here, Cosmopolitan Chief Operating Officer Scott Butera said the parties are finalizing the terms of the recapitalization agreement with the project’s lender, Deutsche Bank, and that Eichner will continue to have a role in the 4 million-sf development under construction next to the Bellagio. “Eichner’s an important part of the project,” said Butera. “But a substantial amount of the equity will be supplied by Marathon and Hyatt.”

A source with Global Hyatt told GlobeSt.com on Thursday that “Global Hyatt has not formalized a deal with anyone” related to the Cosmopolitan Resort and Casino. Butera and Deutsche Bank did not respond to a GlobeSt.com request for confirmation and comment. Deutsche Bank and Marathon also did not return phone calls seeking comment.

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