Icahn Enterprises completed the sale of the unfinished development property and partially developed casino located at 2755 South Las Vegas Boulevard, Las Vegas, which was formally known as the Fontainebleau, to an affiliate of The Witkoff Group and New Valley. The sales price was $600 million.
Icahn Enterprises acquired the Fontainebleau for a price of $148 million in February 2010.
Hospitality real estate sales continued to be light in the first half of 2017 compared to the first half of 2016, according to Colliers International. Visitor volume in the first four months of 2017 was 14.1 million visitors, lower than the 14.3 million visitors to Las Vegas in the first four months of 2016. The gaming revenue totaled $3.37 million in the first four months of 2017 compared to $3.22 million in the first four months of 2016.
The average daily room rate (ADR) and revenue per available room (RevPAR) were also up year-over-year. Room inventory did not increase in any meaningful way so far in 2017, and it should remain stable for the remainder of the year.
Room inventory expanded by 169 units in the second quarter of 2017, bringing year-to-date completions to a mild 220 units. Resorts World Las Vegas remained under construction, with completion of the first phase planned for 2019, along with Steve Wynn’s 1,000-room Paradise Park project that will be constructed on the former site of the Desert Inn Golf Course.
A total of 2,143 rooms sold in the first half of 2017, with total sales volume of $69.5 million and an average sales price of $32,424 per room. In June, the forthcoming sale of the Stratosphere and both Arizona Charlie’s locations to Golden Entertainment was announced. The deal was reported to involve $781 million in cash and 4 million shares of Golden Entertainment stock to Whitehall Street Real Estate Partners 2007. Golden Entertainment already owns and operates casinos in Pahrump, Nev.
Colliers International said, while sales volume in 2017 may not equal that recorded in 2016, the overall sales picture remained strong at mid-year. Visitor volume may have leveled off this year compared to last, but gaming revenue continued to grow and there is every indication that overall hospitality revenue will continue to increase through 2017.
