VICI Properties Inc., a prominent real estate investment trust (REIT), has unveiled plans to inject up to $700 million into The Venetian Resort Las Vegas for extensive refurbishment projects, marking a significant step in enhancing the renowned integrated resort’s offerings and guest experience.

VICI Properties Teams Up with The Venetian for Major Upgrades

This capital infusion, part of VICI’s Partner Property Growth Fund strategy, aims to fund various initiatives such as renovations to hotel rooms, optimization of the gaming floor, and enhancements to entertainment and convention facilities. The endeavor seeks not only to elevate the property’s overall appeal but also to augment its intrinsic value in the market.

According to John Payne, president and chief operating officer of VICI Properties, the collaboration with The Venetian Resort underscores a commitment to innovation and progress within the hospitality sector. He expressed enthusiasm about supporting impactful expansion endeavors at the Las Vegas landmark, citing the impressive performance achieved since VICI’s acquisition alongside funds managed by Apollo Global Management, Inc. in 2022.

David Kieske, chief financial officer of VICI Properties, emphasized the strategic alignment of the Partner Property Growth Fund strategy with the company’s overarching objectives. He highlighted the dynamic nature of VICI’s real estate assets and the potential for creative capital deployment to optimize operational efficiency and profitability.

VICI Properties’ $700M Capital Injection and Poker Room Expansion

The funding agreement entails an initial investment of $400 million to be disbursed in 2024, with an additional $300 million available for drawdown until November 1, 2026. Rent payments under the existing lease agreement will be subject to incremental increases, beginning on the first day of the quarter following each capital infusion, reflecting a 7.25% yield.

Furthermore, the agreement stipulates that incremental rent hikes will commence annually at a rate of 2.0% from March 1, 2029, with subsequent escalations tied to either a fixed percentage or the Consumer Price Index (CPI), capped at 3.0%.

The Venetian Capital Investment is expected to be financed through a combination of cash reserves and the partial settlement of forward equity sale agreements, underscoring VICI’s prudent approach to capital allocation and investment management.

Additionally, the Venetian Resort Las Vegas is relocating and expanding its poker room to a larger space on Level 2 of the Grand Canal Shoppes, set to open in the summer of 2024. 

In a broader context, this initiative exemplifies a growing trend among REITs, including VICI, to provide financing for tenant-driven enhancement projects in the gaming and hospitality sectors. Such arrangements not only diversify revenue streams for landlords but also contribute to the overall enhancement of property values, thereby benefiting all stakeholders involved.

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Using renewable energy and growing sustainably while decreasing carbon emissions is an ongoing goal for businesses across the United States and around the world. Amid concerns about the negative impact of human activities on environmental processes, many businesses shift their focus to sustainable development and growth. This is exactly what Michigan’s premier gaming and entertaining venue, FireKeepers Casino Hotel, committed to by announcing a new partnership with the public utility that offers natural gas and electricity to nearly 7 million residents in Michigan, Consumers Energy.

As announced by the Battle Creek Enquirer, the duo forged a new partnership, allowing the premier entertainment and gaming location to source 100% of its electricity from power sources that are renewable. The collaboration sees FireKeepers Casino join Consumers’ Renewable Energy Program. As the latest member of the program, the casino and entertainment location join a growing list of more than two dozen businesses that have already teamed up with Consumers.

The innovative and forward-looking program enables companies and businesses to match the energy they use to renewable sources such as ones from solar and wind energy. Currently, FireKeepers Casino uses approximately 31,527 megawatt-hours annually, all of which will be matched with renewable energy sources, reaffirming the venue’s commitment to sustainable growth and environmental responsibility.

The Premier Entertainment and Casino Location Leads by Example

Eric Clinton, Consumers’ director of renewable products, praised the latest collaboration with FireKeepers Casino. He explained: “This commitment is meaningful in many ways. It accelerates our clean energy journey, allowing us to retire our coal facilities within the next two years and run a carbon-neutral power grid by 2040.”

Frank Tecumseh, FireKeepers Casino’s CEO, was similarly delighted. He outlined that the collaboration reaffirms the venue’s commitment to a better future.

Tecumseh added that FireKeepers is the first tribal casino operator in Michigan to commit to such a program. Finally, he said they hope that this action will help push other tribal and commercial operators to commit to renewable energy programs.

Ultimately, FireKeepers Casino’s commitment to the program will help decrease greenhouse gas emissions in Michigan. Their efforts are the equivalent of recycling some 13,500 garbage trucks or the removal of a staggering 61,000 gas-powered transportation vehicles from the roads.

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Leading developer and operator of world-class integrated resorts, Las Vegas Sands, acknowledged the importance of responsible water use and vowed to further reduce its use by 2025. The announcement came Wednesday and coincided with World Water Day, an initiative designated by the United Nations (UN) to reaffirm the importance of access to fresh water.

World Water Day, which happens annually on March 22, encourages businesses, communities and families to help preserve fresh water by managing their consumption better. The initiative is also a part of the UN Sustainable Development plan.

“Water stewardship is one of Sands’ core environmental focus areas under the Planet pillar of its global corporate responsibility platform, and the company has set a 2025 target to reduce potable water use per square foot by 3% from a 2019 baseline,“

reads a statement released by Las Vegas Sands

Now, in light of World Water Day, Las Vegas Sands confirmed its plans to reduce potable water use per square foot by 3%. The target year set for this ambitious initiative is set for 2025 based on the 2019 baseline, explained the company.

Sands added that it expects this target to be achieved by preserving water use and improving its water operations within different segments of the business. At the same time, the company vowed to continue to offer supreme services for the guests of its properties.

The Company Remains Focused On Preserving Water

Sands, just like other globally recognized gaming operators, has an extensive sustainability program that also focuses on responsible growth and reducing environmental impact. This year, for World Water Day, the company shared “its water stewardship efforts,” which include multiple actions that seek to increase water reuse, protect water ecosystems and encourage water efficiency.

Previously, Sands has invested in low-flow water fixtures within different operating segments such as fountains, spas and hotel rooms, among other places where water is needed. Moreover, the company has implemented efficiency upgrades that contribute toward saving water and confirmed that this process will continue in the future as well.

“Water is one of the resources most critical to our business.“

Katarina Tesarova, senior vice president and chief sustainability officer at Las Vegas Sands

Katarina Tesarova, Las Vegas Sands’ senior vice president and chief sustainability officer, explained that water represents one of the critical resources for the company’s business. She outlined that water is used within all aspects of the business including restaurants, offices, hotel rooms and more. “Water also is fundamental to our building operations, from cooling systems to landscaping” added Tesarova.

She pointed out that the initiative seeks to make a positive impact and help preserve fresh water and natural ecosystems. Finally, Tesarova noted that Sands is continuously improving its water stewardship strategies in an effort to implement best practices.

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