Stewart: ‘It’s absolutely a deal that we would do,’ as LVS seeks US$6 billion for Las Vegas properties
MGM Growth Properties LLC is willing to acquire a big Las Vegas Strip casino such as the Venetian — which Las Vegas Sands Corp. recently put on the block — if the company can find the right partner to operate it.
“We would definitely be interested,” James Stewart, MGM Growth’s chief executive officer, told investors on a conference call Monday. “If we can go to bed at night without having anything keep us up over worrying about — is the rent going to get paid? It’s absolutely a deal that we would do.”
Bloomberg News reported last week that Sands was seeking at least $6 billion for its Las Vegas properties, including the Venetian, the Palazzo, and the Sands convention center. Real estate investment trusts like MGM Growth, which own casino properties but don’t typically operate them, are seen as potential bidders.
Las Vegas has struggled to bounce back from the pandemic, which has crippled tourism and shuttered its convention business. But Stewart doesn’t see Sands’ effort to sell its Vegas properties as a repudiation of the city. If anything, getting $6 billion for the properties would be a validation of Las Vegas’ potential, he said. Sands may just prefer to invest its money elsewhere, such as Macau and Singapore.
Executives at Vici Properties Inc., another large REIT focused on casino properties, said last week that they also would potentially be interested in a large Las Vegas acquisition.
“We continue to be excited about this market long term,” Vici President John Payne said on a conference call with investors. “Clearly, Las Vegas has to get over not having meeting business right now and some international business, but we believe that that will come back.”
