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Is The Cosmopolitan Of Las Vegas For Sale?
Is The Cosmopolitan Of Las Vegas For Sale?

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AIR DATE: April 23, 2014

Sitting on a prime piece of Strip real estate, the Cosmopolitan of Las Vegas is well known for its hand-crafted cocktails and three-story Chandelier Bar. Of course, its celebrity chef run restaurants are profitable.

But despite the crowds, the casino has struggled to attract gamblers.

That struggle has led to three years of red ink. Since opening in December 2010, the Cosmopolitan has lost more than $298 million.

At a cost of $4 billion to build, it's not surprising its owner, Deutsche Bank AG, is trying to dump its costly investment and bring to an end its adventure in the gaming business.

The Australian Financial Review says the German bank is considering a two billion dollar offer from Australia’s Crown Resorts Ltd. for the Cosmopolitan.

Crown Resorts, controlled by billionaire James Packer, is also bidding for a $1 billion casino project in Brisbane, Australia. The gaming company is also building new casinos in Sri Lanka and the Philippines, and has expressed and interest in building a casino in Japan.

This is not the first time Packer has expressed an interest in Las Vegas.

Crown Resorts terminated a deal to purchase Cannery Casino Resorts for $1.8 billion. That decision in 2009 cost the company $320 million in penalties.

In 2007, the Australian company scrapped plans to build Crown Las Vegas, a casino-resort to be built on the Strip between SLS Las Vegas, formerly the Sahara, and the Riviera.

GUESTS

Roger Gros, publisher of Global Gaming Business

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