Sands execs said a while back that maybe the company was going to bug out of Las Vegas, so the deal that’s come to light this morning isn’t too surprising. I guess.
So does $6.25 billion for the two hotel/casinos and the convention center seem like a lot? Or not a lot? I confess I am not an expert in resort industry real estate and operations valuation. I guess it’s a lot. Enough, anyway, to indicate the buyers share the consensus outlook: Hoo boy it sure is going to be exciting when the pandemic runs its course and then the holy sacred pent-up demand amen will enrich us all etc. etc.
From what I’m reading on the internets, a real estate investment trust called VICI (which REITed Caesars) is buying, you know, the physical stuff, for $4 billion. The operations (and revenue streams therefrom) will be acquired by an investment fund, Apollo Global Management, for $2.5 billion. And then Apollo will pay VICI rent. At least I think that’s how the casino industry works these days.
Time will tell if new ownership translates to much if any significant change for the people who work at the things Sheldon built – maybe they’ll get a union?
Meanwhile, and also intriguing… What fate will befall other notable Nevada properties Adelson acquired over the years, i.e., the Las Vegas Review-Journal, the Nevada Republican Party, and Adam Laxalt?
(This mini-commentary was excerpted from the editor’s free Daily Current newsletter, which you can subscribe to here.)