Card Player – Deutsche Bank is in talks with potential buyers of the Cosmopolitan on the Las Vegas Strip, Bloomberg reported this week. The bank has owned the property for a handful of years.
Germany’s largest bank could be looking for more than $2 billion for the casino, hotel and resort, and has attracted at least four possible bidders, the report said. The property’s actual value could be around $1.5 billion.
According to the report, the complex “cost more than $3.9 billion to build and has never turned a profit…The Cosmopolitan reported 2013 earnings—before interest, taxes, depreciation and amortization—of $103 million, a 56 percent increase from 2012. Still, it’s posted net losses of around $100 million every year since opening.”
“Parting with the Cosmopolitan now could make the best of an unprofitable situation. Because business has been improving—the resort’s revenue rose 9.6 percent to a record $653 million last year—the property could fetch more than at any time since it opened in December 2010.”
The casino features more than 100,000 square feet of gaming floor space.
The Cosmopolitan, like many of its kind in Las Vegas, suffered thanks to the Great Recession. The Silver State gaming industry has slowly been recovering since.
