Vici Properties Apparently Pondering Over Potential Investment at Bahamas Mega Resort Atlantis
There's buzz that Vici Properties, an REIT that split from Caesars Entertainment in 2017, might be contemplating an investment in The Bahamas' Atlantis Paradise Island. This speculation emerged from the Central Bank of The Bahamas' recent quarterly economic and financial developments report published on November 5. The report hinted that Vici could be considering an investment in the Paradise Island location.
The Central Bank's "Selected New Foreign Investment Projects" overview mentioned Vici and Atlantis owner Brookfield Asset Management, a prominent Canadian equity firm, as recent approvals for further funding in The Bahamas through New Providence. The bank approved a $382 million project for Vici and Brookfield in the hospitality sector on September 10, 2024.
Atlantis is Brookfield's sole investment in The Bahamas, which the company acquired through a debt restructuring in 2012.
Brookfield's Atlantis Uncertainty
Rumors circulated both in 2019 and the previous year suggesting that Brookfield was looking to sell Atlantis for around $2.5 billion. Despite these reported intentions, no deal materialized. Now, it appears Brookfield has partnered with someone to either invest in the property or expand the marine-themed destination.
The $382 million project could possibly revitalize a 2022 project announced by Atlantis in collaboration with David Grutman of Groot Hospitality and music producer Pharrell Williams. Dubbed "Somewhere Else," the planned 400-room hotel was intended for development near The Coral. However, construction never commenced on this project.
Vici could simply be acquiring a portion of Atlantis with its $382 million investment that was approved by The Bahamas Central Bank in September. The companies declined to comment on these developments.
Vici currently manages the real estate assets of 93 casinos and gaming properties across the United States and Canada. As the world's largest casino landlord, Vici has a market capitalization of approximately $33 billion.
Caesars Connection
Atlantis might be an appealing option for Vici if the REIT is aiming to establish its presence in the Caribbean. With a long operational history, as the resort opened almost 26 years ago, the Atlantis casino holds a partnership with Caesars.
Caesars Rewards members with a Diamond level (15K tier points) or above can secure a complimentary stay annually at Atlantis. Even the lowest Diamond tier members can receive a four-night stay in The Coral Tower, inclusive of room taxes, during designated months. Caesars Rewards members at the Seven Stars level (1M tier credits) can receive a free five-night stay anytime during the year.
The Atlantis casino is also home to the World Series of Poker Paradise. The poker tournament takes place later this month and features the $25K buy-in No Limit Hold'em Championship, boasting a $50M prize pool guarantee this year.
Caesars recently finalized its sale of WSOP, but the $500 million deal allows Caesars to maintain the rights to host the flagship WSOP live tournament series at its Las Vegas casinos for the next 20 years and to keep using WSOP's likeness at its brick-and-mortar poker rooms.
The Bahamas Central Bank's approval of a $382 million project for Vici Properties and Brookfield Asset Management, the current owners of Atlantis, has sparked casino news about potential investments or expansions at the marine-themed destination. Vici, known for managing the real estate assets of 93 casinos, could be looking to expand its presence internationally, with Atlantis' casino partnership with Caesars being an attractive proposition.