Posted on: November 12, 2024, 05:06h.
Last updated on: November 12, 2024, 05:06h.
Vici Properties is reportedly mulling a significant investment in the Bahamas at Atlantis Paradise Island.
The rumblings that the real estate investment trust (REIT) that was spun off from Caesars Entertainment in 2017 might be interested in a play at Atlantis came from the Central Bank of The Bahamas’ most recent quarterly economic and financial developments report. In the disclosure made public on Nov. 5, the Bahamas’ Central Bank, a national reserve responsible for fostering an environment of monetary stability conducive to economic development, reported that Vici could be interested in investing in the Paradise Island destination.
In the bank’s “Selected New Foreign Investment Projects” summary, Vici and Atlantis owner Brookfield Asset Management, a Canadian equity giant, were listed as being recently approved foreign entities for further investment in the Bahamas by way of New Providence.
Vici Properties and Brookfield [were] approved for a $382m project on September 10, 2024, in the hospitality sector,” the report read.
Atlantis is Brookfield’s only investment in the Bahamas. The company acquired the resort and casino in 2012 through a debt restructuring.
Vici Focused ‘Somewhere Else’
Reports surfaced in both 2019 and last year that Brookfield was looking to sell Atlantis for around $2.5 billion. An acquisition, however, never materialized. It now appears Brookfield has found a copartner to either invest in the ownership and/or expand the ocean-themed destination.
The mentioned $382 million project could be to rejuvenate a 2022 project floated by Atlantis in partnership with David Grutman of Groot Hospitality and music producer Pharrell Williams. Dubbed “Somewhere Else,” the 400-room hotel was to be built near The Coral. Ground was never broken on the undertaking.
Vici could also be simply buying a piece of Atlantis with its $382 million presentation that the Bahamas Central Bank approved in September. Requests for comment from Vici, Brookfield, and Atlantis all went unreturned.
Vici currently controls the real estate assets of 93 casinos and gaming properties across the U.S. and Canada. Vici is the largest casino landlord in the world with a market capitalization of almost $33 billion.
Caesars Presence
Atlantis could make sense for Vici if the REIT is focused on making a splash in the Caribbean. Along with a lengthy operational track record, as the resort opened almost 26 years ago, the Atlantis casino has a partnership in place with Caesars.
Caesars Rewards members at the Diamond level (15K tier points) or above qualify for a complimentary stay each year at Atlantis.
Even for the lowest Diamond tier, Caesars Rewards members can receive a four-night stay in The Coral Tower, including room taxes, during February, June, August, November, and December. Caesars Rewards members at the Seven Stars (1M tier credits) level can receive a free five-night stay any month of the year.
The Atlantis casino is additionally home to the World Series of Poker Paradise. The poker tournament takes place next month and is headlined by the $25K buy-in No Limit Hold’em Championship that this year comes with a $50M prize pool guarantee.
Caesars completed its sale of WSOP last month but the $500M transaction allows Caesars to retain the rights to host the flagship WSOP live tournament series at its Las Vegas casinos for the next 20 years and to continue using WSOP’s likeness at the company’s brick-and-mortar poker rooms.
