Venetian Las Vegas Heading Toward $1 Billion Remodel

Apollo Global Management is planning to spend more than $1 billion to update the Venetian Resort Las Vegas, representing one of the most significant updates to a Strip venue in years.

In a recent interview with Travel + Leisure, Venetian CEO Patrick Nichols said expenditures to refresh the glitzy venue could be “north of $1 billion” and will be all encompassing, “touching every area of the guest experience.” Nichols took the helm at Venetian in June after previously serving as the general manager of the Cosmopolitan.

Apollo previously controlled Caesars Entertainment, and today runs the Great Canadian Gaming Corp., Italy’s Gamenet Group S.p.A, and is frequently tied to a slew of gaming industry mergers and acquisitions rumors.

Venetian Remodel Good Deal for VICI

Apollo directing $1 billion or more to enhancing the Venetian is a boon for VICI because, under the terms of the lease structures that are common in the gaming industry, operators — not landlords — are responsible for property maintenance and refurbishments.

Venetian opened in May 1999. The construction cost was $1.5 billion, making it the most expensive integrated resort at that time.

Translation: Apollo is spending a significant percentage of Venetian’s total construction cost to enhance the venue at a price comparable to what some Strip venues could sell for. The investment could pay dividends for the private equity company because competition on the Strip is fierce, particularly for the higher-end clientele venues such as Venetian typically attract.

Venetian Remodel Details

Palazzo is already showing some signs of advancing construction as noted above.

“If we are able to lean into that through the spirit of Italy and discovery, we are not going to look like just another hotel that has refreshed their rooms,” he told Travel + Leisure.