Las Vegas Sands just announced the decision to leave its namesake city and selling two of its property in the United States for a whopping $6.25 million deal. The decision comes after the upscale resort and casino founded by the late Sheldon Adelson focuses its investment in Asia.
In a press release, Las Vegas Sands' Chairman and CEO Robert Goldstein confirmed that they have doubled down the investment in Asia and plans to expand in Macao and Singapore. Before the coronavirus pandemic, the resort casino's Asian counterpart contributed roughly 90 percent of its revenue.
"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 center of our attention," Goldstein said, as reported by CNBC.
The resort casino company also announced dropping its namesake city and shortening its name to Sands as they leave Las Vegas.
"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," Goldstein added.
The famous Adelson entertainment business opened in 1999 and eventually developed into the world's largest casino company.
The COVID-19 Effect
Las Vegas Sands reached its final straw during the coronavirus global pandemic. The resort casino experienced a significant drop as business travel and group business has been restricted for the past months.
Goldstein said the Sands could not return its $500 million EBITDA (earnings before interest, taxes, depreciation, and amortization) without fully returning conference operations.
While the casino resort makes the end of an era, it is still not the end for Sands operation in the United States. Along with boosting its Asian counterparts, Sands will retain its Nevada headquarters and will reportedly develop its business in the so-called "super states of gaming:" New York and Texas.
This move is in opposition to Adelson's long and notable position against online gaming. But the company decided to explore opportunities in sports betting and other digital gambling platforms.
The Buyers
Apollo Global Management and Vici Properties collaborated in acquiring Sands properties, including the Venetian, Palazzo, and the Sands Expo Convention Center. The real estate and investment manager giants joined forces purchasing the Venetian - a 7,000 room resort on the Las Vegas Strip.
Apollo drops $2.25 billion to operate Venetian, while Vici paid the remaining $4 billion for its land and real estate assets.
The private equity firm described buying the Venetian as a "major bet on Las Vegas" as the City of Lights experienced a drastic declined in tourism and business conference caused by the pandemic.
"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," Apollo said, as reported by CNN.
However, Venetian's current management team will continue operating until the deal with Apollo is complete.
