Las Vegas Cosmopolitan could be put up for sale
The high-end venue might soon be looking for a new owner
The Cosmopolitan Casino Resort in Las Vegas is, comparatively speaking, a new venue. It isn’t quite ten years old and has grown to become one of the city’s higher-end properties as far as accommodations are concerned. However, its gaming floor has become very popular over the years, but hasn’t been able to find a stable owner. It changed hands in 2014, when it was purchased by the Blackstone Group, and is reportedly about ready to look for a new set of hands.
According to the Las Vegas rumor mill, Blackstone has begun working with Deutsche Bank AG and PJT Partners, financial giants that are going to explore whether or not the venue should be, and could be sold. Blackstone, which spent $1.7 billion on the property five years ago, has contracted the two firms to explore its options, but does not yet have a new investor lined up. One option would see Blackstone sell the property, but continue to operate the casino for the new owner.
The rumor mill asserts that the property could go for as much as $4 billion – not a bad return for Blackstone. However, there is a lot that has to be reviewed before any plan is put into action. The good news is that the large gaming space and 3,027 rooms are in relatively good condition, which should make a sale easier. There won’t be the need to inject a lot of capital into large renovations, allowing any possible buyer to jump in and start turning a profit almost immediately.