Las Vegas Sand is selling the iconic Venice Casino Resort and its Sand Expo and Convention Center for $ 6.25 billion after moving away from gambling operations on the Las Vegas Strip after changing the nature of the casino business there.
The Venetian name will remain at the Expo Center as well as Palazzo, the Sands’ luxury casino and resort that is part of the same complex, and the company’s headquarters in Las Vegas.
But by his death this year, the company led by Sheldon Adelson would effectively cease American operations. Under Adelson, the company’s focus shifted to Asia years ago, where revenue eventually went out of operation on the Las Vegas Strip.
Under a two-part deal announced on Wednesday, Vicky Properties will buy all the assets associated with the Casino and Resort and Venice Resort Las Vegas and Sands Expo for $ 4 billion. And Apollo Global Management will acquire Venetian operations for $ 2.25 billion.
The global epidemic widened Las Vegas, closing the strip where Las Vegas Sands has been the largest operator for years. Sales growth disappeared last March as the infection spread to the US The company posted a quarterly loss of about $ 300 million in January.
The sale took place just two months after Adelson’s death, which replaced the landmark Las Vegas casino that once housed a vast Italian-inspired complex of Frank Sinatra’s Rat Pack.
Adelson remade the target audience in Vegas, focusing on convents and even families. He recognized that the real potential was not on the casino floor, as it was in the 1960s, but in the hotels, resorts and convention centers that surround him.
After the explosive growth in Las Vegas, Adelson turned his eyes to Asia. Sand expanded as far as Macao, the only place in China where casino gambling is legal, where Adelson instructed his company to build land to create the Coty Peninsula, where there was none, a heap of sand. Operations in Asia quickly overtook those in the US
Sands said Wednesday that Asia is where the company’s focus will remain.
“Venice changed the face of future casino development and solidified Sheldon Adelson’s legacy as one of the most influential people in the history of the gaming and hospitality industry,” said Robert Goldstein, president and CEO. “As we announce the sale of the Venetian Resort, we pay tribute to the legacy of Mr. Adelson, starting a new chapter in the history of this company. This company focuses on growth, and we see meaningful opportunities on various fronts. Asia is the backbone of this company and our growth is the focus of our attention in Macao and Singapore. “
Some industry analysts also hope that Sands will use the proceeds from the sale to aggressively use online gambling more aggressively, something Edelson once lobbied against.
JP Morgan analyst Joseph wrote, “Such efforts have lagged peers so far, and for this to involve the next big thing in gaming, the company will likely have to buy its own way, and now lack money for it is.” Grief.
VICI will sign a triple-net lease agreement with Apollo for Venice. The lease will have an initial total annual rent of $ 250 million and an initial tenure of 30 years, with two 10-year tenant renewal options.
Located on the Las Vegas Strip, Venice has three luxury hotel towers with gaming, entertainment, shopping and dining. The resort includes more than 7,000 all-suite rooms, 225,000 sq ft of gaming space and 2.3 million sq ft of meeting space.
Travel-related companies, from airlines to hotels and resorts, are rolling back with a rollout of new vaccines.
Apollo partner Alex van Hoek said in a prepared statement that the deal “underscores our conviction in a strong recovery for Las Vegas as vaccination reinvigorates leisure and travel in the United States and around the world” . “
Sales are expected to close by the fourth quarter.
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