A luxury whirlpool spa retreat is to be part of a US$1bn (0.72bn euro, £0.49bn) new development at the Caesars Palace resort in Las Vegas, US.

Owned by Harrah’s Entertainment, the resort will undergo a widescale expansion of its accommodation and leisure facilities, including the construction of a spa as part of a new 665-bedroom hotel, called the Octavius Tower.

Located adjacent to a new 236,000sq ft (21,925sq m) meeting and convention centre, the new tower will include three pool villa suites on the second floor and three new swimming pools, which will surround the expanded outdoor whirlpool spa retreat.

Gary Loveman, chair of Harrah’s, said: “This billion dollar investment in our flagship property is an important part of our comprehensive global growth strategy.”

The expansion at Caesars Palace is currently scheduled for completion in early 2009 and follows the 2005 opening of the Augustus Tower at the resort.