With sale of the Venetian, Las Vegas Sands exits the Strip
Las Vegas Sands is selling the legendary Venetian casino resort and its Sands Expo and Convention Center for $ 6.25 billion and is pulling out of the Las Vegas Strip gambling business after the nature of casino business there and almost everywhere has changed differently.
The name of the Venetian, exhibition center, and palazzo, luxury casino and resort by Sands, which is part of the same complex, will be retained and the company's headquarters will remain in Las Vegas.
But the company, led by Sheldon Adelson until his death this year, will effectively cease operations in the United States. Years ago under Adelson, the company focused on Asia, where sales eventually outpaced activities on the Las Vegas Strip.
Under the two-part deal announced on Wednesday, VICI Properties will purchase the casino and resort, as well as all assets associated with the Venetian Resort Las Vegas and Sands Expo, for $ 4 billion. And Apollo Global Management will take over the Venetian's operations for $ 2.25 billion.
The global pandemic in Las Vegas that closes the Strip, where Las Vegas Sands has been the largest operator for years. Revenue growth disappeared in March last year as the infections spread in the United States. The company posted a quarterly loss of nearly $ 300 million in January.
The sale comes just two months after Adelson's death, turning the Las Vegas landmark that was once a hangout for Frank Sinatra's council pack into a towering, Italy-inspired complex.
Adelson reformulated the Vegas audience, focusing on convention attendees and even families. He realized that the real potential was not in the casino, as it was in the 1960s, but in the hotels, resorts and convention centers that surround them.
After the explosive growth in Las Vegas, Adelson turned to Asia. Sands expanded into Macau, the only place in China where casino gambling is legal. Adelson directed his company to build non-existent land and pile up sand to create the Cotai Peninsula. Activities in Asia quickly outpaced those in the US.
Sands said on Wednesday that the company's focus will remain in Asia.
"The Venetian changed the face of future casino development and cemented Sheldon Adelson's legacy as one of the most influential people in gaming and hospitality history," said Chairman and CEO Robert Goldstein We pay tribute to Mr. Adelson's legacy as we create a new one Open a chapter in the company's history. This company is focused on growth and sees significant opportunity on several fronts. Asia remains the backbone of this company and our developments in Macau and Singapore are the focus of our attention. "
Some industry analysts also believe that Sands will use the proceeds from the sale to get into online gambling more aggressively, which Adelson once advocated.
"Its efforts so far have lagged behind the competition, and in order to get involved in the next big thing in gaming, the company would probably have to buy in and now have a pot of money for it," wrote JPMorgan analyst Joseph Greff.
VICI will conclude a triple net leasing contract for the Venetian with Apollo. The lease has an initial total annual rent of $ 250 million and an initial term of 30 years with two extension options for tenants with a term of 10 years.
The Venetian is located on the Las Vegas Strip and has three luxury hotel towers with games, entertainment, shopping and dining. The resort has more than 7,000 all-suite rooms, 225,000 square feet of gaming space and 2.3 million square feet of meeting space.
Travel-related businesses, from airlines to hotels and resorts, are returning with the launch of a range of new vaccines.
Apollo partner Alex van Hoek said in a prepared statement that the deal "underscores our belief in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the US and around the world."
The sale is expected to close in the fourth quarter.
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