Deutsche bank sells Cosmopolitan for USD 1.73 billion

Even thou the bank tried its best to make the Cosmopolitan a success nothing seemed to work and the resort never once saw a profit in all the time it was open. In total Deutsche bank has ploughed in US$ 4 billion to finish the resort once they took control and to keep it open.

 “As part of our Strategy 2015+, the bank is committed to reducing its non-core legacy positions in a capital efficient manner which benefits shareholders,“ Pius Sprenger, the head of Deutsche Bank’s noncore operations unit, said in a statement. “We are pleased to have agreed to this sale and to have delivered on our commitment.”

For Blackstone it is their first entry into the casino business on their own, they had previously had a share in Caesars but now the company that specialises in apartment complexes, shopping centers and office properties will now hope to make the Cosmopolitan a success where Deutsche Bank failed.

 “As a significant investor in the hospitality sector Blackstone recognizes the value and potential in the Cosmopolitan and Las Vegas and looks forward to working to build on the success to date,” Tyler Henritze, a senior managing director at Blackstone, said in a statement.

The Cosmopolitan, a 52-stories high complex with nearly 3,000 rooms in a prime location on the Las Vegas Strip, is Blackstone’s first significant gambling investment. The luxury resort, one of the city’s most expensive, will be added to a long list of hotel assets and hotel groups Blackstone already owes. The company also controls Hilton Hotels, the Waldorf Astoria in New York City and the Hotel del Coronado on Coronado Island in California.