Harrah’s Entertainment announced last month a $1 billion expansion plan for its flagship Caesars Palace that will include a new hotel tower, add convention space and upgrade some of the property’s aging rooms.

The main focus of the development will be the addition of the property’s sixth tower, the 665-room hotel tower named Octavius. The new tower will bring the property’s room count to 4,012 when it opens in early 2009. Other changes include the addition of 263,000 square feet of convention space, three pool villas for high rollers, a café and outdoor spa, an upgrade to the sports book, buffet and food court, as well as the renovating of 512 hotel rooms in the Forum Tower.

“This billion dollar investment in our flagship property, Caesars Palace in Las Vegas, is an important part of our comprehensive global growth strategy,” said Harrah’s CEO and President Gary Loveman in a press release. “From the United Kingdom to Las Vegas and beyond, we will continue to enhance our network of branded properties to deliver unforgettable guest experiences and provide good jobs for our nearly 100,000 team members around the world.”

The company plans to hire an additional 1,000 employees to staff the additions. Caesars Palace currently has about 7,500 employees.

The expansion will allow the property to keep up with the soon-to-come mega-resorts planned for the Strip in terms of amenities, style and room rates, Caesars President Gary Selesner said. Such projects include the $2.6 billion Palazzo that Las Vegas Sands Corp. will open by the end of this year, Steve Wynn’s $2.1 billion Encore and MGM Mirage’s $7.4 billion Project CityCenter, both scheduled to open in 2009, and Boyd Gaming’s $4.8 billion Echelon development.

“We think we’ve put together a program and a package that will now allow Caesars Palace to compete with whatever is coming down the line,” Selesner said. “When people come here, they will still fell like they are at their father’s Caesars Palace, but they’ll also feel that they’re at the Caesars Palace for the new generation.”

By Greg Jones

Greg Jones is managing editor of Casino Connection Nevada, as well as associate editor of Global Gaming Business magazine.

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