BY Richard Summerfield
An affiliate of funds managed by alternative investment firm Apollo Global Management Inc are to acquire the Las Vegas properties of Las Vegas Sands in a deal worth $6.5bn.
The properties being sold include the Venetian Resort Las Vegas and the Sands Expo and Convention Centre. Apollo Global Management Inc’s affiliate-managed funds will buy the operating company of the Venetian for $2.25bn and VICI Properties will buy the land and real estate assets of the Venetian for $4bn.
The sale will see Las Vegas Sands increase its focus on the increasingly lucrative Asian market, most notably, the world largest gambling hub, Macau. The deal comes just a few months after the death of the company’s then chief executive and chairman, Sheldon Adelson.
“The Venetian changed the face of future casino development and cemented Sheldon Adelson’s legacy as one of the most influential people in the history of the gaming and hospitality industry,” said Robert Goldstein, chairman and chief executive of Las Vegas Sands. “As we announce the sale of The Venetian Resort, we pay tribute to Mr. Adelson’s legacy while starting a new chapter in this company’s history.
He continued: “This company is focused on growth, and we see meaningful opportunities on a variety of fronts. Asia remains the backbone of this company and our developments in Macao and Singapore are the centre of our attention. We will always look for ways to reinvest in our properties and those communities.”
“The Venetian is America’s premier integrated resort, with an unrivalled set of amenities to serve guests across hospitality, meeting events, gaming, and entertainment – categories that we believe are well positioned for strong recovery and long-term growth,” said Alex van Hoek, a partner at Apollo. “The team at Las Vegas Sands, under the leadership and vision of Sheldon Adelson, built an irreplaceable asset that is renowned for its quality, scale and integrated offerings, and we see significant opportunity to invest in and accelerate its growth.
“This investment also underscores our conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and across the world,” he added.
“The Venetian is one of the most coveted properties in Las Vegas and a premier destination for gaming, business and leisure alike,” said John Payne, president and chief operating officer of VICI Properties. “We are thrilled to add The Venetian to our roster of best-in-class assets and believe the property is positioned to benefit from a rebound in Las Vegas under Apollo’s leadership. We look forward to what we expect will be a mutually beneficial and productive relationship with Apollo.”
The gambling industry has been badly affected by the COVID-19 pandemic. Sales growth vanished in March 2020 as infections spread across the US. Las Vegas Sands posted a quarterly loss of almost $300m in January.
News: Las Vegas Sands to sell Vegas properties for about $6.25bn