Las Vegas Sands Corp., renowned for The Venetian casino, is leaving Las Vegas as it is selling its iconic properties to Apollo Global Management and Vici Properties for $6.25 billion. The late Sheldon Adelson had founded the upscale resort and casino corporation.
Apollo Global Management, a private equity firm, is paying $2.25 billion for The Venetian’s operating company and its partner Vici is paying the remainder of $4 billion for the land and real estate assets. The assets include The Venetian which is a huge 7,000 room resort on the Strip and the nearby Sands Expo and Convention Center.
The Venetian had opened its doors to a huge number of tourists both domestic and international in 1999. The upscale resort was a pioneer that changed the face of casino development as well as the hospitality industry in Vegas and the Strip.
Las Vegas Sands is removing the Las Vegas from its name as it is leaving the city. Adelson had been thinking of selling its Nevada properties before his death in January, according to sources. Sands properties in the U.S. accounted for less than 14% of its total revenue in 2019 and the pandemic also had a drastic effect. The company said that its flamboyant properties in Macau and Singapore are its huge revenue earners.
In a press release, Sands said that the change was “bittersweet.” The company would be focusing on Asian markets as they were fast growing markets.
Robert Goldstein, CEO of Sands called the Venetian Adelson’s legacy and said that he was one of the most influential persons in the gaming and the hospitality industry in Vegas.
Apollo said that they have made this investment as they bet on the future of Vegas and its tourism and conference business. They believe that Las Vegas will recover as the vaccines roll out. They say that leisure and travel industry in the nation and throughout the world will soon begin and there is a strong potential for its growth.
After the announcement Sands shares rose by about 3% in premarket trading.