Apollo Global Management and Vici Properties partnered to purchase the Venetian,
(CNN Business) -
Las Vegas Sands Corp., the luxury resort and casino company founded by the late Sheldon Adelson, is leaving its city of the same name and selling its two Nevada properties in a $ 6.25 billion deal.
Apollo Global Management and Vici Properties partnered to purchase the Venetian, a 7,000-room resort on the Las Vegas Strip, and the nearby Sands Expo and Convention Center.
Apollo will pay $ 2.25 billion for the Venetian's operating company.
Vici will buy the land and real estate assets for the remaining $ 4 billion.
Private equity firm Apollo said the purchase is a major gamble in Las Vegas.
There, tourism and conference business figures fell dramatically last year due to the pandemic.
"This investment also underscores our belief in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and around the world," he said.
Las Vegas Sands will shorten its name to Sands as a result of its departure from Las Vegas.
In a press release, Adelson's company said the change is "bittersweet."
He also pointed out that it will help them focus on faster growing markets like Asia.
"The Venetian changed the face of future casino development and solidified Sheldon Adelson's legacy as one of the most influential people in the history of the gaming and hospitality industry," said Sands CEO Robert Goldstein.
The luxury resort opened in 1999, helping the company to become the largest casino company in the world.
There were multiple reports that Adelson was considering selling his Las Vegas properties before his death in January.
Sands properties in the United States accounted for just over 13% of its revenue in 2019. Meanwhile, its dazzling properties in Singapore and Macau became the main sources of income.
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Shares in Sands soared nearly 3% in pre-market trading.
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