What are the odds? Rare Las Vegas Strip casino hits the market

The New York investment firm made the once-failing property one of the most successful on the Strip

TRD NATIONAL /
Apr.April 17, 2019 06:30 PM
Blackstone Group CEO Stephen Schwarzman and the Cosmopolitan of Las Vegas (Credit: Getty Images and Wikipedia)

Blackstone Group CEO Stephen Schwarzman and the Cosmopolitan of Las Vegas (Credit: Getty Images and Wikipedia)

The Cosmopolitan hotel and casino was one of the biggest failures of the Las Vegas Strip in the last decade. Now, five years after buying and reversing its fortunes, Blackstone Group is reportedly exploring a sale.

The New York-based investment giant has retained Deutsche Bank and PJT Partners Inc. to explore options for the property, including a sale, according to the Wall Street Journal. If sold to a casino operator, the property could be earn $4 billion or more. That’s about double the $1.7 billion Blackstone paid for it in 2014.

The 110,000-square-foot hotel with 3,000 rooms sits next to the Bellagio and will likely attract interest from other resort and casino operators, including larger local players or international operators like Malaysia’s Genting Group.

The $330 average daily room rate at the Cosmopolitan is the highest on the Las Vegas Strip and earnings before interest, taxes, depreciation and amortization is around $300 million, sources told the Journal.

Those earnings are more than triple the earnings of the hotel before Blackstone bought the property from Deutsche Bank, which took over the unfinished property after the Bruce Eichner-led development group behind it defaulted on a construction loan.

The property opened in late 2010. Blackstone invested $500 million in the renovations, including converting the four then-unfinished top floors of the hotel into 21 suites meant to attract high rollers. It also built 18 new bars and restaurants at hotel and casino.

Blackstone benefited from strong tourist activity in Las Vegas during its ownership of the hotel, including an all-time peak of 43 million tourist visits to the city in 2016. [WSJ]Dennis Lynch


Related Articles

arrow_forward_ios
Industrial sales are up

South Florida’s industrial sales jump to over $1B in Q3 2019

Daily Digest Miami

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest

Blackstone CEO Stephen A. Schwarzman and 5120 Northwest 165 Street

Blackstone buys two Miami Gardens industrial properties for $14M

3208 Northwest 72 Avenue and Blackstone CEO Stephen Schwarzman (Credit: Google Maps and Getty Images)

Blackstone buys industrial portfolio near Miami airport for $56M

State report finds open gas valve fueled building explosion at Plantation shopping center

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

Bayside Marketplace is planning another high-rise entertainment venue with a view

Construction of downtown Hollywood high-rise may start soon

Construction of downtown Hollywood high-rise may start soon

Blackstone CEO Stephen A. Schwarzman and Southwest 13th Court (Credit: Google Maps)

Blackstone snags industrial site in Pompano Beach for $10M

arrow_forward_ios