Cosmo up for sale

Should be interesting to see who wants it.

http://www.bloomberg.com/news/2014-04-16/deutsche-bank-said-to-seek-sale-of-cosmopolitan-las-vegas-resort.html

 

I'd love for MGM to buy it, but I doubt that'd ever happen.

 

I thought that there was a water shortage out there. The cosmo dug so deep to be built that they hit a natural spring and the water needs to be pumped out 24 hours a day! Maybe they could sell that spring water and turn a profit!

 

I thought that Marriot had controlling interest in the Cosmo.

 

They are an operating partner, much like Hilton and Tropicana are.

 

they just handle the reservations

 

I don't want MGM or Caesars to buy it. Time for some fresh blood on the strip.

 

Maybe Steve Wynn will chime in?

 

It's a geographic fit for MGM sitting b/t Aria and Bellagio. And CET is losing way too much money right now though they did sell themselves to themselves. Haha. Or maybe Boyd goes big time to make up for Echelon? haha

 

I'll buy it! Anyone want to go halves with me?

 

Cosmo is fresh blood.

I wouldn't want Caesars to buy it. Cosmo is too nice to be a CET property. I'd hate to see the state it'd be in after they took over.

 

I too hope MGM and CET keep their muddy paws off it. I've really enjoyed Cosmo and it's continual comps. I like having this non CET mLife option and being treated well. I hope it continues under whoever acquires the property. I'm bummed to read it is being sold.

 

Maybe we can start one of those crowdfunding things...

 

Marriott doesn't handle the reservations or operate the hotel, they're just affiliated. Meaning you can use Marriott's web site to book at Cosmo and Marriott gets a piece of the action.

 

Agreed...

 

At the $1.5 billion valuation mentioned by some investors in the article I'd probably be in (subject to all sorts of due diligence). That's roughly a 15x EBITDA multiple which is where most of the mature gaming operators are valued. And I think Cosmo has a lot of untapped potential compared to them.

Agreed with others that I'd like to see an operator with no presence on the strip buy it. Maybe someone like Boyd and then establish some synergies between with their other luxury product, the Borgata.

 

This has been coming for a while. MGM does seem to be a natural fit based on the geographic location. And I'll be contrary -- I wouldn't mind to see that. I love the Cosmo but give all my play to MGM. So it'd give me an excuse to spend more time there.

 

as long as Genting doesn't buy it.

 

As long as CVS and Walgreens don't buy it I'll keep coming back.

 

There is no way MGM is buying it. They are finally getting closer to shaving off some of their enourmous debt which is what has kept them growing their stock price until lately. They don't need another high end property competing with the one's they already own. Besides, there are newer untaped markets they are now getting into. Last thing they need is another Vegas property.

CET -- they do need a real high end property to compete with MGM, Wynn and VP. However, they are beyond broke and their days are numbered.

My guess is that a new consortium will emerge that will share the risk.

Alternatively, what about Crown?? They are doing well with their Asian expsoure and have no Vegas footprint....