Las Vegas Sands sells the iconic Venetian casino resort and its $ 6.25 billion Sands Exhibition and Convention Center, withdrawing from gambling operations on the Las Vegas Strip after changing the nature of the casino business there and nearby. everywhere.
The name of the Venetian, the exhibition center, as well as the Palazzo, the casino and the luxury resort Sands, which is part of the same complex, will remain, 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. Under Adelson, the company’s focus shifted to Asia years ago, where revenues eventually surpassed even Las Vegas Strip operations.
Under the two-party deal announced Wednesday, VICI Properties will buy the casino and resort and all assets associated with Venetian Resort Las Vegas and Sands Expo for $ 4 billion. And Apollo Global Management will acquire Venetian operations for $ 2.25 billion.
The global pandemic has spread to Las Vegas, closing the area where Las Vegas Sands has been the largest operator for years. Sales growth disappeared in March last year as infections spread to the United States. The company posted a quarterly loss of nearly $ 300 million in January.
The sale comes just two months after the death of Adelson, who turned the landmark of the Las Vegas casino, which was once a hangout of Frank Sinatra’s pack of rats, into an imposing Italian-inspired complex.
Adelson reframed the target audience in Vegas, focusing on conventionists and even families. He acknowledged 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 an explosive growth in Las Vegas, Adelson turned his attention to Asia. Sands expanded to Macao, the only place in China where casino gambling is legal, where Adelson directed his company to build land where it did not exist, gathering sand to create the Cotai Peninsula. Operations in Asia quickly surpassed those in the United States
Sands said Wednesday that Asia will remain the company’s focus.
“The Venetian has changed the face of the future development of casinos and strengthened the legacy of Sheldon Adelson as one of the most influential people in the history of the gaming and hospitality industry,” said President and CEO Robert Goldstein. “As we announce the sale of The Venetian Resort, we pay tribute to Mr. Adelson’s legacy as we begin a new chapter in the company’s history. This company is focused on growth and we see significant opportunities on a variety of fronts. Asia remains the backbone of this company and our developments in Macao and Singapore are the focus of our attention. ”
Some industry analysts also expect Sands to use sales revenue to push online gambling more aggressively, which Adelson had pressured.
“His efforts so far have lagged behind his colleagues and in order for him to get involved in the next great thing in games, the company should probably buy his way and now has a sum of money to do so,” he said. wrote JPMorgan analyst Joseph Greff.
VICI will conclude a triple lease with Apollo for the Venetian. The lease will have an initial total annual rent of $ 250 million and an initial term of 30 years, with two 10-year tenant renewal options.
Located on the Las Vegas Strip, Venetian has three luxury hotel towers with games, entertainment, shopping and dining. The resort includes more than 7,000 suites, 225,000 square meters of play space and 2.3 million square meters of meeting space.
Travel-related companies, from airlines to hotels and resorts, are roaring back with the launch of a series of new vaccines.
Apollo partner Alex van Hoek said in a prepared statement that the agreement “underscores our belief in a strong recovery for Las Vegas, as vaccines open a reopening of leisure and travel in the United States and around the world.”
The sale is expected to be completed by the fourth quarter.