Morgans Hotel Group Co. slashed its capital commitment to the $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. Boyd said at the time that it planned to resume construction in three to four quarters if credit market conditions and economic conditions improve.

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