Las Vegas Sands Group, the world’s most valuable gaming operator, agreed to sell its Las Vegas property to Apollo Global Management Inc. and Vici Properties Inc. for US$6.25 billion. The company wants to focus its attention on the potential opportunities in the Asia.
The companies said in a statement that the real estate investment trust Vici will own the properties and Apollo will be responsible for the management of the properties. Before the coronavirus pandemic, Sands Group’s revenue from the Venetian Hotel, Palazzo Hotel and related conference facilities in Las Vegas in 2019 was less than 15% of the company’s total revenue.
The Sands Group hired consultants to solicit buyers last year, indicating that it no longer considers Las Vegas as its priority area. The company has determined in its capital expenditure plan to invest US$5 billion in resorts in the next five years, most of which are concentrated in Macau and Singapore which contributed 85% of revenue in 2019.
“The company is focused on growth, and we see potential opportunities in Asia,” Sands Group CEO Robert Goldstein said in a statement. “Asia is still the backbone of the company, and our development in Macau and Singapore is our top priority.”
The company is also considering the rapidly growing field of online gambling. The founder of Sands Group Sheldon Adelson, who died in January, avoided this field for ethical issues.
With the development of the epidemic, private equity giant Apollo is betting that this American casino will recover quickly. This investment “highlights our belief in a strong recovery in Las Vegas, because the vaccine will reopen leisure and tourism in the United States and the world,” Apollo partner Alex Van Hoek said in the statement.