Last year around this time we’d just returned from the $20 million opening of the Atlantis Hotel in Dubai. Which meant that when it came to the mere $5 million debut of the $1 Billion renovated Fountainebleau Hotel, we decided to pass — despite a private concert by Mariah Carey and Victoria’s Secret fashion show.
Well, apparently the massive resort may have invested millions in their launch party — but a year later they’re short on cash to pay hungry creditors.
Indeed, as talks of bankruptcy swirl around the hotel — folks demanding cash are emerging from all side, and they’re quickly spilling the beans.
Looks as if Fountainbebleau owner Jeffrey Soffer is saddled with a $650 million construction loan that is quickly coming due. Above that, there are some $60 million in unpaid contractor bills that creditors want paid NOW!
Also hot on Soffer’s heels is, well, Dubai! Because last year, the investment arm of the Dubai government paid Soffer’s ownership group $375 million for a 50 percent stake in the Fontainebleau. That deal gave the Dubai entity, part of Nakheel Leisure, the option to take over restructuring negotiations if there were problems with the resort’s loans.
Now those problems have appeared and the Dubai dudes are springing into action. Nakheel folks are conceding Chapter 11 may be inevitable — which is exactly what happened to Soffer’s $3 billion Fountainebleau in Las Vegas after it failed to make payments on $800 million in loans even before it was complete.
Worrisome news, for sure. We’re certain, however, that Mariah got her money!