Deutsche Bank, the German banking group who owns the Cosmopolitan of Las Vegas on the Strip, is trying to sell the resort for just over $2 billion according to a report today from Bloomberg News. Actual sources behind the scenes were unnamed because the info is not considered public as yet. According to the report, four potential bidders for the property are currently interested.
The banking group obtained the property in January 2008 when original developer Ian Eichner defaulted on his construction loan (more than $700 million). Since that time, the property (costing over $3.9 billion to build) has never turned a profit. The Cosmo has posted net losses of approximately $100 million every year for 6 years. The owners had multiple marks against them at the outset, as they entered the hotel-casino market at the very height of the national and Las Vegas economic downturn. Gambling revenues and property prices tanked in Vegas as the Cosmo prepped to open the doors.
The casino and players club at Cosmopolitan have developed a poor reputation among gamblers since day one. Casino revenues have always been less than half the gross revenue of non-gaming sources at the property, which includes the massively popular and profitable Marquee Nightclub.
If the property ends up with new owners, perhaps they'll develop a more player-friendly casino, retain that cool chandelier, and retain the secret pizza place and the Wicked Spoon Buffet. We'll see. The Cosmo caters to the young and the hip, and was named the world's best hotel to pick up single ladies in 2012 because of their club and bar scene ( see previous LVE Cosmopolitan articles linked below).