Not a moneymaker, but revenues are improving
Want to order a Cosmopolitan? Deutsche Bank “is in talks” to sell its Cosmopolitan resort in Las Vegas, the Las Vegas Sun has reported. Asking price: from $1.5 billion to $2 billion.
Deutsche Bank foreclosed on the property in 2008 after developer Ian Bruce Eichner defaulted on a $760 million construction loan. The development, which was supposed to have cost $1.8 billion total, was initially slated to open in 2008. The recession took care of those plans, and by the time the German-based bank completed Cosmo, which opened in December 2010, development costs had soared to $3.9 billion.
The Cosmopolitan has yet to turn a profit, but business has been improving. Revenue rose 9.6 percent to a record $653 million last year, the Sun reported. In 2013, the Cosmopolitan reported EBITDA of $103 million, a 56 percent increase from 2012. Even so, its net losses have come in around $100 million every year of operations. Nongaming amenities including retail, restaurants, nightclubs and shows contributed more than twice as much gross revenue last year as the property’s 110,000 square-foot casino.
