Tags: Cosmopolitan, Deutsche Bank, I will sell this resort today, Las Vegas, opportunities
As some of you may recall, Deutsche Bank owns a casino1 (and hotel) in Las Vegas called The Cosmopolitan. If it seems out of character2 for the Germans to be proprietors of an establishment whose motto is “Just the right amount of wrong,” where people lay scantily clad around a pool by day and gorge themselves on food and drink before vomiting while waiting in line to get into a club by night, that’s because Deutsche only meant to get into the business of funding the project, not running it. Unfortunately, in 2008 the original developer, Ian Bruce Eichner, had to go and default on his loans, and when it became apparent that no one else wanted to invest in the place, the bank decided to just finish the thing itself, spending an addition $3 billion that went towards things like “a three-story crystal-strewn bar meant to evoke the inside of a chandelier.” Anyway, the resort has been been making slightly more money than in earlier years (while still “post[ing] net losses of around $100 million every year since opening”) and management has decided that as much fun as its been owning an in-house nightclub called “Rose. Rabbit. Lie.”, it’s time to sell.
Germany’s largest bank is seeking more than $2 billion for the resort and has attracted at least four possible bidders, said one of the people, who asked not to be identified because the information isn’t public. Two others said it may be valued closer to $1.5 billion. Deutsche Bank foreclosed on the property after developer Ian Bruce Eichner defaulted on a construction loan in January 2008, and has labeled it a temporary investment.
Make an offer today.
Deutsche Bank Said to Seek Sale of Cosmopolitan Las Vegas Resort [Bloomberg]
1. Where people would rather pick up a pair of Crochet Flare Pants at Molly Brown Swimwear than gamble: “Shopping, restaurants and shows at the Cosmopolitan, including at its three-story Marquee Nightclub & Dayclub, contributed more than twice as much gross revenue last year as its 110,000 square-foot casino.”↩
2. Or not out of character at all.↩