According to a report published in the Wall Street Journal, Blackstone Group LP is considering to sell The Cosmopolitan of Las Vegas. It has been reported that the private equity firm is seeking expert services from PJY Partners Incorporated and Deutsche Bank AG to find them a potential deal.
The New-York based Blackstone acquired The Cosmopolitan luxury hotel and casino in 2014. The company spent around $1.73 billion to purchase the property. Also, post-acquisition the company has spent to the tune of $500 million as a part of the renovation and expansion of the Vegas strip casino.
The expansion and renovation plan saw 18 new bars and restaurants added to the property. The top four floors of The Cosmopolitan were also modified into 21 spacious suites to attract VIP guests.
The property is one of the most expensive on the Vegas Strip as it has an average room rate of over $330 per night – more than the most in Nevada. The venue has also been generating significant revenues which have consistently risen over the years. Since 2014, the revenues have grown by over 300 percent to around $300 million annually.
Many potential buyers are eyeing at the property including gambling and hospitality giant MGM Resorts International and Wynn Resorts Limited, the Wall Street Journal reports. Also, it won’t be surprising if Genting Malaysia may even line up to place a winning bid.
It is expected that the property may get a deal of around $4 billion given its location, brand value, and performance.
The report claims that the owner of The Cosmopolitan, the Blackstone Group is looking to sell the property due to a fall in the number of visitors. The number of visitors in Vegas casinos has moderately declined in the past few years.