2021.03.18

The Palazzo awakens from its slumber

The Palazzo reopened its hotel tower on Thursday, March 11, following four months of closure. The hotel’s reopening follows that of several other Las Vegas properties that are taking reservations throughout the week.

The Palazzo forms part of the larger Venetian Resort Las Vegas and boasts over 3,000 premium rooms and suites.

March 2020 saw Nevada’s casinos and other non-essential businesses being compelled to suspend their operations by the state to stem the spread of the Coronavirus. These venues remained closed for almost three months until they were permitted to reopen in June.

A drop-off in demand saw the Palazzo and other Las Vegas properties halting mid-week reservations in July. A fresh wave of restrictions implemented by the state in December to restrict a new Covid-19 surge meant the hotel tower had to stop taking reservations completely. Some of the operation’s restaurants and boutiques alongside its casino floor and parking garage remained open.

MGM Resorts International reopened its Mandalay Bay, Park MGM, and Mirage resorts in March and now has these operations running through the week.

Las Vegas is also poised for the launch of a brand new casino complex, an event which has been postponed several times and Virgin Hotels Las Vegas will be reopening on March 25.

The Venetian under new ownership

The Palazzo’s reopening follows the news the ownership of the complex will be changing hands. The US buyout firm Apollo Global Management has sealed an agreement to acquire the property, adding to its already impressive collection of casino and hospitality assets.

The price tag for the acquisition sits at $2.25 billion for the operating company of the Venetian, the Palazzo, and the neighbouring Sands Expo and Convention Center which are all currently owned by Las Vegas Sands.

VICI Properties, a Caesars Entertainment Inc. Affiliated real estate investment trust will fork out $4 billion for the land and real estate assets of the three aforementioned properties, bringing the total transactional value to 6.25 billion. Once the Apollo closes, the venue will begin a long-term, triple net lease agreement with VICI for the gambling complex, the hotel tower, and the convention space.

The deal is expected to be concluded in the fourth quarter of 2021, following regulatory approval.

Las Vegas Sands’ announcement that it was discussing the sale of the Venetian and the Sands Expo and Convention Center came in October 2020. At the time, company officials elaborated that selling these properties gave Sands the flexibility and freedom to focus exclusively on cultivating its presence in the Asian market, the casino operator’s most lucrative source of revenue.

The company, whose founder and long-serving CEO, Sheldon Adelson passed away in January, currently operates integrated resorts in Macau and Singapore which contribute over 85% to its total revenue.

The Palazzo