The Blackstone Group Continues to Invest Money in Las Vegas

Most of Las Vegas is still shut down. All casino companies here are currently losing a huge amount of money and it’s unclear when any gaming venues here will be allowed to open up again. Interestingly, The Blackstone Group continues to invest money into this city.Blackstone Group Logo

This company has already put a huge amount of money into this city. It appears The Blackstone Group now sees an opportunity with the current situation Las Vegas finds itself in. Today, we’re going to look at some of the recent investments Blackstone Group is making into the Las Vegas market.

Let’s get into it!

Governor Sisolak Extends Nevada’s Stay-At-Home Orders

It’s been more than a month since all of the casinos in Nevada closed down. It should come as no surprise to hear this is taking a serious toll on the state economy. Cities such as Las Vegas, for example, are losing an incredible amount of revenue right now.

Las Vegas casinos help to bring the state major revenue every month. This gambling industry also employs thousands of people. With casinos now closed down, the vast majority of these workers are now left without a job.

Many have questioned how long Governor Sisolak would force these businesses to remain shut down. There’s a statewide stay-at-home order set in place that some have criticized. Even the Mayor of Las Vegas has called for the city to reopen again.

This week, Sisolak announced that he plans to extend the state’s stay-at-home order. It’s a decision that is likely to frustrate casino companies. With that being said, most health experts feel that Las Vegas is not ready to completely open up once again.

Some casinos are still preparing to open back up. With the Governor’s new decision, this is unlikely to happen anytime soon. That isn’t stopping some major investment firms from putting money into Las Vegas, though.

The Blackstone Group Invests Millions Into Crown Resorts

There’s a good chance you’ve heard of The Blackstone Group before. This company has pushed hard into Las Vegas over the past decade. It now owns several major casino-resorts throughout the city.

Not long ago, this company purchased the Bellagio Las Vegas for an astounding $4 billion. Prior to that, it bought the Cosmopolitan for $1.7 billion. Blackstone Group even bought the MGM Grand and Mandalay Bay in a joint venture for $4.6 billion.

This week, news broke that this company purchased a $360 million stake in Crown Resorts. It appears to be another major push into the Las Vegas market. With the investment, Blackstone now owns a 10% stake in Crown Resorts.

It’s a strategic move. Crown Resorts has worked hard to buy and construct property here. Back in 2007, the company invested money into a company building the proposed Fontainebleau Casino & Resort. The plans for this venue were eventually scrapped.

It remains to be seen what plans Blackstone Group and Crown Resorts have for Las Vegas. It seems likely that more property sales will take place over the next few months.

Las Vegas Casinos Are Gearing Up For a Return

At the start of this year, it looked as if everything was going right in Las Vegas. Casinos here were bringing in a huge amount of revenue and tourism was reaching record numbers. No one could have predicted that things would change in the way that they have.

Unfortunately, the city is now at a standstill. Governor Sisolak is extremely hesitant to reopen the casinos here. As a result, there are almost no visitors now coming to the city.

Casino officials in Las Vegas continue to make preparations for the future. Some of these casinos are set to install thermal cameras to detect patrons with a fever. It’s also likely that EMTs will be placed inside the casino to assist anyone dealing with Covid-19 symptoms.

If all goes according to plan, Las Vegas casinos may be able to open again within the next couple of months. When that happens, it’s almost guaranteed that these venues will not look the same way they did prior to this pandemic.

Blackstone Group clearly sees a major opportunity here. By teaming up with Crown Resorts, these companies will start making a serious impact on this Nevada casino. Stay tuned for updates on this situation over the next few weeks!

The Bellagio Sale is the Biggest in Las Vegas History

Las Vegas is going through an interesting time right now. Recently, several major casino operators here have committed to selling some of their biggest properties. MGM Resorts announced its Bellagio sale last week, which is said to be the biggest of any resort in Las Vegas.

Bellagio Hotel And Casino

The Bellagio Hotel & Casino was once the world’s greatest casino-resort. Its sale came as a huge surprise for many individuals. Today, we’re going to look at the history of this amazing hotel-casino, and talk about why exactly it was sold.

History of the Bellagio Hotel & Casino

In the 1990s, several major Las Vegas gambling venues opened their doors. None were as grandiose and exciting as the Bellagio Hotel & Casino. This venue first underwent construction in 1996 and officially opened to the public towards the end of 1998. It cost more than $1.6 billion to construct, which at the time meant it was the most expensive hotel ever built.

The Bellagio quickly exploded in popularity. It had some of the most expensive rates in the city, yet everyone wanted to stay here. This venue managed to bring in massive revenue earnings and was considered the hottest property on the Las Vegas Strip.

Of course, not everything lasts forever. Over the past decade, several new hotel-casinos have opened here that have somewhat taken away the Bellagio’s shine. Despite this fact, it’s still an incredible hotel-casino and one that continues to bring in massive revenue earnings every single year.

MGM Resorts International has discussed plans to sell some of its Las Vegas properties for years. Many felt that if any were sold, it would be the smaller, less popular venues located on the Strip.

Interestingly, officials within MGM confirmed last week that the Bellagio was being sold to the Blackstone Group.

MGM’s Bellagio Sale is the Biggest Ever Made in Las Vegas

The Blackstone Group has shown a major interest in purchasing major Las Vegas hotel-casinos. MGM Resorts International confirmed that they’d sold the Bellagio to this company for an astounding $4.2 billion. This makes it the biggest of any resort sale in Las Vegas history.

The terms of the Bellagio sale are very interesting. Blackstone Group will actually begin leasing the casino-resort back to MGM for an annual rent of $245 per year. MGM will also retain a 5% ownership stake in the hotel.

The second-largest casino sale in Las Vegas doesn’t even come close. In 2014, the Cosmopolitan Hotel & Casino was sold to Blackstone Group, as well. It cost them just $1.73 to purchase this venue.

Such a high price is expected for a hotel-casino as successful as the Bellagio. This venue generated more than $405 million in operating income last year. It’s showing no signs of slowing down, either.

MGM Chairman and CEO Jim Murren believes that selling properties will help the company “redeploy capital to higher-return investments.”

The Bellagio sale may not be the only major one taking place on the Las Vegas Strip.

More Las Vegas Strip Property Sales Could be Coming

MGM Resorts clearly feels that major property sales are the best course of action right now. Also last week, the company announced that it had sold the Circus Circus Hotel & Casino to Phil Ruffin, owner of Treasure Island. The sale earned MGM $825 million.

It’s unclear whether or not MGM Resorts International plans to get rid of any additional Las Vegas properties. Officials in the company seem committed to obtaining an elusive Japanese casino license.

Caesars Entertainment may soon announce another Las Vegas property sale. Earlier this year, Caesars agreed to merge with Eldorado Resorts. It’s the largest merger in US casino company history.

Heads of Caesars Entertainment claim they’re interested in selling properties. Last month, Caesars sold the Rio Hotel & Casino. It’s still possible for a major Caesars Strip property to go up for sale.

The Bellagio sale is the biggest in Las Vegas history. Make sure to stay tuned for more Las Vegas casino news over the next few months!