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  • Writer's pictureShernel Thielman

Blackstone’s Bellagio Deal Values Luxury Hotel at $5 Billion

Blackstone Inc. is divesting a portion of its ownership in the renowned Bellagio hotel in Las Vegas, a strategic move aimed at creating funds for investors participating in a property fund tailored for affluent individuals with a total value of $67 billion.

Realty Income Corporation, a prominent player in property investment, is set to acquire a 21.9% stake in the real estate assets of the Bellagio hotel and casino. This transaction values the combined assets of the Bellagio at $5.1 billion. Meanwhile, the Blackstone Real Estate Income Trust (BREIT), the entity overseeing this initiative, will continue to maintain a controlling interest of 73.1%.

In 2019, Blackstone acquired the Bellagio for $4.25 billion. More recently, the company has been evaluating proposals to sell 50% of its ownership share in the hotel's real estate.

Over the span of the last four years, BREIT has successfully divested $12 billion worth of real estate assets, yielding a notable profit of $2.5 billion during its period of ownership. This increase in profitability has been attributed to the escalating valuations of data centers, which have significantly bolstered the fund's recent returns.

In addition to the Bellagio deal, BREIT has executed agreements for the sale of a Texas hotel for $800 million and the offloading of a self-storage business for $2.2 billion. In the preceding year, BREIT also concluded the sale of its ownership stakes in two other Las Vegas hotels: the MGM Grand Las Vegas and the Mandalay Bay resort. These sales have resulted in considerable profits and liquid assets for the investors involved in BREIT. Investment Disclaimer:

The information provided here is for educational and informational purposes only. It is not intended as investment advice, and should not be construed as such. Investing in financial markets involves risks, and past performance is not indicative of future results. Always conduct thorough research and consider seeking advice from a qualified financial professional before making investment decisions.

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