Apollo Global Management plans to spend over US$1 billion to renovate the Venetian Resort Las Vegas, becoming one of the largest updates to a Strip property for years. The Venetian CEO Patrick Nichols said expenditures will be all encompassing “touching every area of the guest experience.” He took the helm at Venetian in June after previously serving as the general manager of the Cosmopolitan.
In March 2021, Las Vegas Sands announced the sale of the Venetian, Palazzo and Venetian Expo to Apollo and VICI Properties for US6.25 billion. Private equity behemoth Apollo is paid US$2.25 billion for the operating rights to the venues, while VICI is shelled out US$4 billion for the real estate. The transaction closed earlier this year.
Apollo directing US$1 billion or more to enhancing Venetian is a boon for VICI because under the terms of the lease structures that are common in the gaming industry, operators not landlords are responsible for property maintenance and refurbishments.
VICI is the dominant property owner on the Strip, controlling the Venetian and associated assets and Caesars Palace, among other prestigious venues. The real estate investment trust (REIT) also owns the property assets of Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, New York New York, and Park MGM, as well as various regional casinos operated by MGM Resorts.
Palazzo is already showing some signs of advancing construction as noted above, the broader Venetian remodel will be broad.
CEO Nichols told Travel + Leisure the pool deck will be completely overhauled, a US$50 million addition TAO Beach Dayclub will be performed and a slew of new dining options will be added with some debuting as soon as next year. Nichols notes Venetian is a themed hotel and that’s not changing, but the venue is evolving as is the case for the city after which the property is fashioned.
“If we are able to lean into that through the spirit of Italy and discovery, we are not going to look like just another hotel that has refreshed their rooms,” he told Travel + Leisure.
Source: GMB / Travel + Leisure
