As reported by: The Associated Press
Hoping to bolster its growing convention business, the Mandalay Bay megaresort has opened a new luxury hotel tower that's sleek in design and kitsch-free.

The 43-story tower _ called THEhotel _ has 1,128 suites and cost about $230 million to build. The tower has a spa and fitness center, a lounge and two restaurants, including"Mix in Las Vegas"by famed chef Alain Ducasse.

THEhotel will bring the total number of rooms at Mandalay Bay to more than 4,700 and create 700 new jobs. It will make Mandalay Bay the second-largest hotel in the United States, behind neighbor MGM Grand, which has about 5,000 rooms.

The lounge and Ducasse's rooftop restaurant are slated to open next year, said Mandalay Bay spokesman Gordon Absher. The spa should be ready to pamper guests in about two weeks.

The hotel's ground floor is bedecked with works by Robert Rauschenberg, Andy Warhol and Arturo Herra, giving it a sophisticated feel that should appeal to business travelers, hotel officials said.

The new suites average 725 square feet, among the largest rooms available in Las Vegas. They come with fax machines, Internet access and plasma televisions. The suites will cost between $200 and $300 a night depending on the time of year.

Executives with Mandalay Resort Group, the company that owns the megaresort, are hoping the tower will meet the demand generated by the new 1.4 million-square-foot convention center that opened earlier this year.

John Marz, MRG's senior vice president of marketing and events, said the tower brings a new dimension to the property and company. He expects the rooms to be filled on weekdays by people attending conventions and on weekends by tourists.

"It adds the one tier in our product offering that we didn't have,"Marz said."We believe we have plenty of demand for this product."

Marz said the hotel tower, with its minimalist interior, will increase the property's average daily room rates and possibly provide a glimpse of what's to come in the city.

"We believe that style is going to be the next phase of Las Vegas,"he said."We think it's going to go away from themes."

The new tower is one of four recently built or under construction in Las Vegas. The Venetian opened its 1,013-room, 12-story tower named the Venezia this summer. The tower cost about $275 million.

The Bellagio hotel-casino, which is owned by MGM Mirage, also is expanding, adding a $375 million, 925-room tower slated to open next year.

Caesars Palace is adding a 949-room hotel tower to be completed in 2005. The $376 million project will bring total room capacity at Caesars to nearly 3,400.

Marc Falcone, a gambling analyst with Deutsche Bank in New York City, said the Mandalay rooms will enhance the image of Las Vegas.

"I think the rooms are a great product for the Strip,"he said.

Falcone said the new tower also is consistent with MRG's business plan.

"I think that Mandalay is more focused on driving premium room rates than using the rooms for high-end gamblers,"he said.

With an improving economy, Falcone said the new hotel towers could signal"the start of a significant development explosion in Las Vegas."