German banking giant Deutsche Bank has divested its loss-making Cosmopolitan of Las Vegas casino and resort to private equity firm Blackstone for a total consideration of $1.7bn.
The resort, which broke ground in October 2005, is located just south of the Bellagio on the west side of Las Vegas Boulevard, and consists of two high-rise towers.
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The $3.9bn project features 2,995 rooms, an 110,00ft² casino, 300,000ft² of retail and restaurant space, a 40,000ft² spa and fitness facility, a 1,800 seat theater, and 150,000ft² of meeting/convention space. It also features Marquee Nightclub & Dayclub.
The casino hasn’t turned a profit since opening in December 2010, as the US tourism industry struggled to recover from the 2008 financial crisis.
Deutsche’s non-core operations head Pius Sprenger was quoted by The Associated Press as saying, "The bank is committed to reducing its non-core legacy positions in a capital-efficient manner that benefits shareholders."
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Blackstone senior managing director Tyler Henritze said, "As a significant investor in the hospitality sector, Blackstone recognises the value and potential in the Cosmopolitan and Las Vegas and looks forward to working to build on the success to date."
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