Harrah's, Starwood Plot Big Resort

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Harrah's Entertainment

(HET)

and

Starwood Hotels & Resorts

(HOT)

are teaming up to build a mega-resort in the Bahamas.

Harrah's, the world's largest casino operator, and hotelier Starwood plan to unveil details of their plans Monday. The companies are working with closely held Baha Mar Development Co. on the resort, to be located on Nassau's Cable Beach.

Their investment could be as large as $2 billion,

The Wall Street Journal

reported, citing people familiar with the situation.

The Baha Mar resort would likely increase competition for

Kerzner International

(KZL)

, which operates the Atlantis destination resort on Paradise Island in the Bahamas.

Harrah's shares finished Friday up 67 cents, or 3.1%, at $22.25. Kerzner lost 2 cents to $58.74, and Starwood gained 29 cents to $58.59.