New York (AP) -- Morgans Hotel Group Co. slashed its capital commitment to the USD 4.8 billion Echelon mega-development Thursday, signaling another speedbump in the joint venture project with casino operator Boyd Gaming Corp. Last month, Boyd suspended work on the Las Vegas project after the capital market crunch prevented the company from obtaining financing for key portions of the development.

Las Vegas (AP) -- Boyd Gaming Corp. said Monday its Echelon megaresort on the Las Vegas Strip will cost USD 4.8 billion, up from a previously expected USD 4.4 billion as plans for its retail spaces and hotels were better defined. The company said its 50-50 joint venture with Morgans Hotel Group Co. would develop a 550-room Delano hotel and 860-room Mondrian hotel for USD 950 million. The cost of the hotels had previously been estimated at USD 700 million, Boyd spokesman Rob Stillwell said.