The titans behind the Venetian on the illustrious Las Vegas Strip are dealing themselves a hefty jackpot, preparing to distribute an eye-watering $550 million. This greenlight comes from none other than the Nevada Gaming Control Board. Private owner Apollo Global Management and its league of investors are in for a windfall, pending the final nod from the Nevada Gaming Commission later this month.
CFO Robert Brimmer Reports Record-Breaking Performance at Venetian
When Venetian CFO Robert Brimmer hit the table, he couldn’t help but beam with pride. The resort in 2023 didn’t just meet its budget – it blasted past it like a high roller on a winning streak. Brimmer emphasized that the property’s performance has been nothing short of spectacular, with 2024 already stacking up to be another banner year. Their proverbial hand is strong, consistently nabbing market share and meeting financial targets.
Brimmer didn’t mince words when he attributed this meteoric rise to the capital investments Apollo has showered upon the Venetian since snagging it from Las Vegas Sands Corp in February 2022. Think of it as a $490 million upgrade – that’s how much Apollo has poured into transforming the Venetian from the ground up, revamping customer experiences, and ramping up revenue. Brimmer’s eyes sparkled as he spoke of fostering a culture where employees think like they hold the house edge; increased accountability equals increased performance.
Approval of $550 Million Distribution: A Bet on Long-Term Success
Securing the board’s thumbs-up, Apollo’s vision to maintain the property’s edge in the competitive market is clear. Since taking the helm, Apollo has pledged a cool $1 billion capital infusion, with $900 million earmarked for a 2024-2025 spree. Imagine renovating 4,000 suites, elevating them to the pinnacle of opulence, by mid-2025, and sprinkling in new high-limit gaming spaces, top-tier restaurants, and entertainment venues. It’s like stacking the deck for a sure win.
Venetian Accumulates $830M in Cash Reserves
By the end of July, the Venetian wasn’t just holding its own; it had amassed a staggering $830 million in cash reserves. Even after the $550 million distribution shuffle, the property retains a hefty $280 million chunk – plenty to ante up for future ventures. Brimmer, the ace up Apollo’s sleeve, reassured that this financial cushion, bolstered by expected cash flow, keeps the Venetian’s ambitious plans well within reach without compromising fiscal health.
The ringing endorsement from the Nevada Gaming Control Board underlines their trust in the Venetian’s robust financial health and strategic direction. Board Chairman Kirk Hendrick gave a tip of the hat to Apollo’s dedication to both property and personnel. Emphasizing that this payout draws from existing cash stores, avoiding new debt is a high-stakes maneuver executed with finesse.
Not one to be left out, Board member Brittnie Watkins chimed in with her support. She highlighted the Venetian’s strong financial performance and shrewd management as hallmarks of its sound strategy. Echoing this, George Assad, another board member, emphasized the crucial role of maintaining substantial cash reserves in keeping the operation shipshape.
Apollo’s concentrated efforts to elevate the Venetian are part of a grand strategy – to crown the Venetian as the jewel of the Las Vegas Strip.
This strategy isn’t just about brick and mortar; it’s also investing in the workforce and guest experiences, like doubling down on a winning bet. Employee bonuses and property enhancements aim to boost enjoyment for guests and returns for investors. Apollo, since taking the reins, has been in lockstep with VICI Properties, sealing a $700 million financing deal as a part of that dazzling $1 billion transformation blueprint.
With the cards dealt and the stakes high, all eyes are on the Venetian and Apollo’s next big move in this high-stakes game on the Strip.
