Deutsche Bank (NYSE:DB) is finally exiting the Las Vegas gaming market it never wanted to be in in the first place. Six years after The Cosmopolitan's builder defaulted on loans, the Strip resort is being sold to a fund run by Blackstone Group (NYSE:BX).
The deal values the resort at 17 times EBITDA, an incredible multiple considering Las Vegas' slow growth. It's also telling that MGM Resorts (NYSE:MGM) and Wynn Resorts (NASDAQ:WYNN), which both have the balance sheets to buy the property, weren't at all interested.
The question is whether Blackstone can unlock any value in the resort. Gaming specialist Travis Hoium examines this deal and what it means for Las Vegas in the video below.