Sands Leaves Las Vegas and Sets Its Sights on Asia
Sands Agrees to Sell Its Las Vegas Properties
Las Vegas Sands (LVS) is selling its Las Vegas operations to the private equity firm Apollo Global Management and a real-estate investment trust in order to focus on its businesses in Asia. The deal values the Las Vegas properties at about $6.25 billion.
The pandemic has battered the casino and hospitality industries. Travel bans, temporary shutdowns, and capacity restrictions have hurt casino operators’ bottom lines and stock prices. However, Sands’ share price hit a 52-week high when news of the deal broke yesterday.
A New Chapter for Sands
The announcement comes shortly after Sands’ billionaire founder, Sheldon Adelson passed away in January. Sands’ CEO Robert Goldstein said, “As we announce the sale of the Venetian Resort, we pay tribute to Mr. Adelson’s legacy while starting a new chapter in this company’s history.”
Sands will keep its headquarters in Las Vegas but it wants to focus resources on its properties in Asia. The company is valued at about $44.7 billion, and about 87% of its revenue comes from its operations in Asia, mainly Macau and Singapore. It also plans to explore ways to grow its online gambling business.
Apollo’s Outlook
This will not be Apollo’s first investment in the gambling industry. The company was part of a $30 billion leveraged buyout of Harrah’s Entertainment in 2008, which was later renamed Caesars Entertainment (CZR). Apollo also agreed to buy casino company Great Canadian Gaming last November.
Apollo thinks that Sands’ Las Vegas properties are well positioned for long-term recovery. Many believe there is pent up demand for entertainment, travel, and dining experiences—and that once more people are vaccinated, these industries will see growth.
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