Fontainebleau Resort Sold for Huge Profit after 7 Years

Fontainebleau Resort Sold for Huge Profit after 7 YearsConstruction on the $2.9 billion Fontainebleau Resort Las Vegas was halted after just two years in 2009 when the development went into bankruptcy. The following year, Icahn Enterprises L.P. subsequently snapped up the property for $148 million, and having sat on it all this time, the firm has now agreed to sell it on to investment companies The Witkoff Group LLC and New Valley LLC for a $600 million price tag.
Commenting upon its sale, and the tidy profit made by the business., Carl Icahn stated that the Fontainebleau represented “one of Icahn Enterprise’s hidden gems,” and that the property was acquired at a time when other companies showed a unwillingness to invest. Elaborating further, Icahn explained:
“This successful investment is an example of our ‘contrarian’ modus operandi, which seeks to invest in undervalued assets and businesses, nurture, guide and improve their condition and operations, and ultimately sell them for large gains.”
In addition to the gaming industry, the range of industries that fall within the scope of Icahn Enterprises includes everything from automotive, energy, metals, and mining, to real estate and food packaging.
In the meantime, Witkoff seems equally as pleased to add the Fontainebleau Resort to its portfolio, especially as Nevada is now recovering from the downturn it experienced in recent years. Describing the property as “one of the best physical assets in the country,” a statement from the firm said that the structurally sound integrated resort was purchased at a “significant discount to both replacement cost and the implied public market valuations of comparable Las Vegas Strip resorts”. Adding further to its value is the fact the Fontainebleau is situated close to the Las Vegas Convention Center, which is presently undergoing a massive renovations to the tune of $1.4 billion, and looking ahead, Witkoff stated:
“We look forward to applying our industry-leading value-enhancing platform to this property to unlock its true growth potential.”

Other news:   Virgin Group Becomes New Owner of Hard Rock Hotel Las Vegas

Poker News
Japan Introduces Responsible Gambling Bill
28 May 2018
Japan’s bicameral legislature, known as The National Diet, consists of an upper House of Councillors and a lower House of Representatives, with the latter having started discussing the Integrated Resorts Implementation Bill last week. Being debated is the regulatory framework required in order to set up an efficient and well functioning casino market in the
Ohio Casino Revenue Up 1% to $71.8m in April
17 May 2018
The Ohio Casino Control Commission has released its gambling results for April, with the state’s four casinos collecting $71.8 million last month, up by almost 1% compared to the prior year. Meanwhile, the Buckeye State’s seven racinos fared considerably better, with their revenue rising by 8% to $89.7 million from their slots and video gaming
NJ Generates Record iGaming Revenues in February
15 May 2018
In April, New Jersey’s online gambling market saw its revenue rise by 10.6% to $23 million versus the same month in 2017, with the amount posted second only to the record $25.6 million collected in March 2018. As a result, the Garden State has now generated $92.5 million over the first four months of this
Virginia Poised For Historical Gambling Expansion
11 May 2018
Virginia is among the country’s more conservative states when it comes to gambling, and for many decades has resisted the allure and revenues that the industry might bring. In the 1990s, for instance, its legislature turned down a push for riverboat gambling, and the following decade Internet gambling cafes were outlawed. For the past five