Aria and Vdara Sold: CityCenter Owners Lose Billions

From Vital Vegas

https://vitalvegas.com/aria-and-vdara-sold-citycenter-owners-lose-billions/

Thanks for posting this news and your link works w/o copying/pasting! Yes I do kind of think MGM Resorts over spent on City Center. It will be nice to be able ultimately to view Aria's numbers in the company's filings now that it will no longer be a partnership and not reportable like their other casinos. Actually based on how well the dealers do, Aria's casino may be outperforming Bellagio.

I was never a fan of the City Center complex idea. Besides being too big and confusing with their layout, I prefer the individual, uniquely themed casinos.  But that is a thing of the past.  I don't mind an occasional sleek, modern looking casino like Cosmopolitan but miss the cool themed resorts that you could only find/see in Vegas (or the real city i.e. Paris, Venetian etc).

Given their gouge-everybody response to the pandemic, and the sad fact that they're winning more money from us peasants than ever before in Vegas history, I'm voting for every single one of them to be imploded.

The trick to investing is you are suppossed to buy low and sell high.     Seems like the LV Casino owners suck at that.  

LV Sands sold the Venetian and Palazzo last year at the bottom of the pandemic.   I'm sure they would have  got a better offer  for them now that the rooms and casino are packed.      I dont understand selling Aria and Vdara right now at a loss when they are obviously raking in cash for the same reason.   

Meanwhile other resorts stay closed in the midst of record visitor attendance  in the city.       

One reason--very high rates of leveraging. Similar to how CET (nationally) and Stations (locally) have tried to build casino empires, the casino corporations, almost immediately after acquiring a casino property, mortgage it to the hilt--in order to be able to put money down on the next property they buy. It was basically a Ponzi scheme that worked fine as long as the sucker, er, tourist money kept flowing in. The pandemic stopped all that needed cash flow. The result is that they can't afford to wait even six months; those leveraged obligations are due now. They're being forced to have a fire sale as a result of past risky decisions.