Wow, what was the initial budget if they had to spend that much to update it?
I dug up the book so I could answer your question. I'm not a big reader, but if you like knowing how things work, this book is excellent. It is entitled 'SUPER CASINO, Inside the "New" Las Vegas", and was written by Pete Earley, published by Bantam.
The following is a history lesson on the Luxor, so if that kind of stuff bores you, I'd move along!
The Luxor was built by Circus Circus at the same time that Steve Wynn was building Treasure Island. There was a big race between the two to open first and get the initial publicity thrust. Luxor actually accomplished this, opening 12 days before Treasure Island, but the openings couldn't have been more different, as TI opened (and operated) basically problem free, whereas the Luxor, according to the book, "appeared to be cursed".
The book says the initial price tag in 1991 was estimated to be $300 million. I glanced through the book but couldn't find what the final figure was, but I seem to remember that it was much higher.
The hotel opened in 1993, and the remodel was around 95 and 96. Remodel may be a misnomer, because SO much about the hotel was changed. Most of the work was done in 1996, so I suspect the remodel announcement was made in 1995, less than two years after opening. Upon announcement, the budget was estimated at $250 million, but according to the book it ended up being $400 million on completion.
The book chronicles in detail a laundry list of the problems of the Luxor, from design, implementation, kick off, even the idiocy of not having a "cabbie night" where the cab drivers are given previews.
Circus Circus Managers eventually said they should have opened three weeks AFTER Treasure Island, but they rushed to open before, and that, along with the building design problems killed them.
Let me reiterate that I've stayed at the Luxor and highly recommend it. At the very least, visit it if you go to Vegas. You can't imagine the size of this thing until you are actually IN it and see the vast amount of space that is open to the top.
Gives you a whole new appreciation for the pyramids and makes you wonder how in the WORLD they could have built them.