• 16 Apr 2014 at 9:58 AM

Who Wants To Buy A Las Vegas Resort?

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.

26 comments (hidden to protect delicate sensibilities)
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Comments (26)

  1. Posted by Ralph Wilsons Ghost | April 16, 2014 at 10:03 AM

    Its too bad Trump is thinking about buying the Bills, he could bankrupt the shit out of this place

  2. Posted by Your Boy | April 16, 2014 at 10:28 AM

    Well Bess, I think it's time we turn our pillow talk into action and buy the place. Not getting any younger.

  3. Posted by Guest | April 16, 2014 at 10:48 AM

    Aren't both Cosmo along with Aria the newest Vegas hotels that have basically no energy compared to the slightly older, more established spots like Wynn and Bellagio?

    -Married guy who hasn't been to Vegas since a bachelor party in 2010

  4. Posted by Kevin Sorbo | April 16, 2014 at 11:06 AM

    Bess, why do you only call me when you're high?

  5. Posted by Analist | April 16, 2014 at 11:09 AM

    Bullshit. A lot of Germans love a wrong amount of wrong.

    -VP of Wrist Band Color Coordination at Munich Re

  6. Posted by guesst | April 16, 2014 at 11:19 AM

    See footnote #2.

    - VP of Guy who this and that

  7. Posted by BNP HR | April 16, 2014 at 11:36 AM

    WTF is DB doing getting into the casino business? This is what destroyed the industry to begin with. You are an investment bank not a developer, landlord or commercial real estate bank. You need to take zero risk like us, we wear scarves in july because the air conditioners aare on too high. Viva La France!

  8. Posted by Stevie Wynn | April 16, 2014 at 11:37 AM

    Ill take this for 15 cents on the dollar and any matisse in the joint

  9. Posted by Guest | April 16, 2014 at 12:08 PM

    Aria sucks, Cosmo is decent. Bellagio really sucks but places like Caesar's and MGM still get good crowds/energy even though they're not as nice.

  10. Posted by guest | April 16, 2014 at 12:12 PM

    is it fan fiction day?

  11. Posted by Guest | April 16, 2014 at 12:22 PM

    <—–I love arrow.

  12. Posted by Stevie | April 16, 2014 at 12:48 PM

    Just keep your elbows tucked in, for the love of Art!

  13. Posted by ILoveLamp | April 16, 2014 at 12:49 PM

    from the Dictionary of Investment Banking:

    Temporary Investment – (n) a deeply out of the money trade

  14. Posted by Guest | April 16, 2014 at 1:06 PM

    Bellagio sucks because…seniors citizens?

  15. Posted by Guest | April 16, 2014 at 1:06 PM

    Bellagio sucks because…senior citizens? Are any of the other hotels worth mentioning?

  16. Posted by Guest | April 16, 2014 at 1:24 PM

    Hit up Carnaval Court at Harrah's.

  17. Posted by Guest | April 16, 2014 at 1:28 PM

    And if you want to see Shamu hit the buffets or the topless pools.

  18. Posted by Rebecca M. | April 16, 2014 at 2:01 PM

    I hear the DoubleTree located on E
    Tropicana is nice. We'll according to the MD's here it's the top notch spot in Vegas.

    UBS FICC 3rd Year Analyst

  19. Posted by ralph | April 16, 2014 at 2:15 PM

    Cosmopolitan is literally the hottest hotel on the strip right now. It's not the Wynn or Bellagio but it is definitely high energy. World classes DJ's always perform there! Shit! Even the hotel bar by the entrance is a major party!!

  20. Posted by Analist | April 16, 2014 at 2:42 PM

    Sure, you paid more attention to details here than I did. But, until you can dissect Matt Levine footnotes, Mckayla is not impressed.

  21. Posted by Deleveraging | April 16, 2014 at 4:02 PM

    Hey if you made it this far past the financial crises, not to mention Dodd-Frank and your still having fun; I have a better idea. Sell it to Morgan Stanley! Of course, you would take the Ravel off of James' back, both companies book a loss to offset/shelter future income and get to stay in the Casino Resort business with a lower basis. I'm sure douchebags from both banks are frequently visiting these resorts, getting comped and having the usual debauchery no longer appreciated around the office. Why stop now.

  22. Posted by Guest | April 16, 2014 at 7:26 PM

    I'm not familiar enough with Vegas to tell whether you're joking or you actually think people from UBS post their actual job titles?

  23. Posted by guest | April 17, 2014 at 8:58 AM

    You must be new here.

  24. Posted by Battered Guest | April 17, 2014 at 9:42 AM

    Yeah, cuz the DoubleTree is almost always a top notch spot. I can see how that would be hard to sort out if you've never been to Vegas.

  25. Posted by Sean Murphy | April 18, 2014 at 1:27 PM

    In order to support the divestiture, DB has a fully underwritten 7.5x staple out

  26. Posted by Review | April 20, 2014 at 7:24 PM

    If someone won the Quicken Loans Bracket Challenge they could have put a bid in.