Las Vegas will never be back to the glory days of Hangover and Ocean's 11 because everyone in Las Vegas has either sold out, moved out or died. MGM has sold their Las Vegas properties to VICI Properties INC. VICI Properties, INC. is a spin off from the now bankrupt Caesars Entertainment Corp. VICI touts themselves as "an experiential real estate investment trust (REIT) that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace.
By mid-2022, VICI Properties INC will own (property only)
VICI will be the landlord. They rent the casino space and hotel rooms to outside parties. This is what you call a "no value added" layer of management.
Too many layers is why Vegas will never "be back'. The individuals who made the Las Vegas we all know and love are now gone. They have been replaced by corporations, pushed out or sold out. Steve Wynn is divested out of Las Vegas and Sheldon Adelson's family sold the Ventian one month after the man died. The new owners of Las Vegas would rather work with investors than deal with Las Vegas' new, low end, clientele.
From selling slots to stocks
Las Vegas main business was once luring unknowing consumers to gamble in Las Vegas. One owner would own a casino and everything in it. They owned the bar, the restaurant and the hotel. That's how they could afford to comp food, booze and rooms. They would even work with the airlines to subsidize flights. Vegas was for the people.
Today, the main business in Las Vegas is to lease the hotels, restaurant and bars to investors. That's another layer of management. Instead of the casino owner leasing space to a restaurant, now the casino owner is just another tenant, like the restaurants & bars. There's not a lot of wiggle room for comps or loosening the slots.
But what these investors do not know is the hospitality business is a tough business. Most restaurants do not last more than 3 years in Las Vegas. The owner of a property will sell some group on leasing a space. They will lease them the restaurant equipment too. The new group runs the business for about 6 months to 3 years, depending on the depth their capital, before finally going out of business. The landlord evicts the tenant and then, they do it all over again with another group in the same space with the same equipment.
What is an experiential REIT?
I do not claim to be a real estate expert, although, I've purchased, built and sold many commercial real estate projects. However, I cannot figure out what is an experiential REIT.