Blackstone Buys the Cosmopolitan, Jumping Into Las Vegas Gaming Market
Deutsche Bank is finally exiting the Las Vegas gaming market it never wanted to be in in the first place. Six years after The Cosmopolitan's builder defaulted on loans, the Strip resort is being sold to a fund run by Blackstone Group .
The deal values the resort at 17 times EBITDA, an incredible multiple considering Las Vegas' slow growth. It's also telling that MGM Resorts and Wynn Resorts , which both have the balance sheets to buy the property, weren't at all interested.
The question is whether Blackstone can unlock any value in the resort. Gaming specialist Travis Hoium examines this deal and what it means for Las Vegas in the video below.
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The article Blackstone Buys the Cosmopolitan, Jumping Into Las Vegas Gaming Market originally appeared on Fool.com.Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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