Venetian Resort: Owners Set to Distribute $550 Million in Dividend

The Venetian CFO Robert Brimmer expressed confidence in the resort’s strong financial position, noting that the property has exceeded its budget and goals by an impressive margin in 2023. He emphasized that 2024 also shows positive trends, with continued achievement of financial targets and market share gains.

Brimmer attributes this success to the capital investments Apollo has made since acquiring the Venetian in February 2022 from Las Vegas Sands Corp. Those investments, totaling $490 million, have revitalized the resort, improving both guest satisfaction and revenue. He noted that Apollo’s strategy includes creating a culture where employees think like owners, which increases accountability and productivity.

The Board’s approval is seen as a validation of Apollo’s long-term vision to maintain competitiveness. Since the acquisition, Apollo has committed to a $1 billion capital plan, with $900 million earmarked for 2024-25. The funds are earmarked for major property upgrades, including a 4,000-room renovation to be completed by mid-2025, as well as new gaming, dining, and entertainment venues.

By the end of July, the Venetian had accumulated $830 million in cash reserves. Even after distributing $550 million, the resort will still have $280 million, providing ample liquidity to support current and future investments. Brimmer assured that this financial cushion, along with expected cash flows, will allow the Venetian to implement its ambitious capital plan without jeopardizing its financial stability.

The positive recommendation from the Nevada Gaming Control Board reflects confidence in the financial health and strategic direction of the Venetian. Board Chairman Kirk Hendrick praised Apollo’s commitment to investing in the property and employees, noting that the distribution is being funded from existing cash reserves rather than by incurring additional debt.

Council member Brittney Watkins also supported the payout, citing the Venetian’s strong financial performance and prudent financial management as key factors. Fellow council member George Assad expressed similar thoughts, emphasizing the importance of maintaining strong cash reserves. Apollo’s efforts to improve the Venetian are part of a larger strategy to solidify its position as a premium destination on the Las Vegas Strip. This includes significant investments in employee benefits and property improvements aimed at creating a more compelling guest experience and better returns for investors. Since the acquisition, Apollo has also partnered with VICI Properties to secure $700 million in financing as part of a $1 billion improvement plan.