U.S. investment giant Blackstone is reportedly weighing offers for half its stake in the real estate of the Bellagio casino and hotel in Las Vegas. According to the reports, the private equity firm is considering its options and has not yet committed to a sale.
Bloomberg News first reported on the rumors on Monday, citing unnamed people familiar with the matter. New York-based Blackstone, which had bought Bellagio from MGM Resorts International for $4.25 billion in 2019, has been cashing out of its real-estate positions. This month, the firm said it would sell industrial properties for $3.1 billion to Prologis Inc.
Bellagio is one of the top-performing resorts on Las Vegas’ famous Strip and is still operated by original owner MGM under a long-term lease. Traffic to Las Vegas hotels and casinos has remained strong, even as other real estate sectors have weakened.
In 2021, Blackstone agreed to sell the Cosmopolitan casino and hotel on the Las Vegas Strip for $5.65 billion. The figure means Blackstone managed to roughly triple its initial investment, creating one of the most lucrative commercial real estate transactions in US history. And in 2022, the firm agreed to sell its 49.9% interest in the MGM Grand Las Vegas and the Mandalay Bay Resort to real estate investment trust VICI Properties.
Already the largest landlord on the Strip, VICI is seen as a potential suitor for the Bellagio sale. However, VICI hasn’t publicly confirmed interest in owning part of the venue.
The reports come as Bellagio embarks on its latest remodel. Earlier this year, the resort revealed new details of a $110 million transformation of all rooms and suites within its Spa Tower, a move set to deliver ‘contemporary accommodations inspired by the beauty and tranquility of Italy’s Lake Como.’
Following the AAA Five Diamond resort’s recent remodel of more than 2,500 guest rooms in its main tower, the Spa Tower redesign encompasses 819 guest rooms and 104 suites and is slated to be completed in October, with the first collection of rooms available for guest stays beginning in July.
Original article: https://www.yogonet.com/international/news/2023/06/27/67674-blackstone-reportedly-exploring-sale-of-stake-in-las-vegas-strip-39s-bellagio
