Venetian employees receive $1500 bonuses in recognition of a successful year

Apollo Global Management, a private equity investment firm, owns the Venetian Resort and plans to distribute a $620 million dividend to investors as well as give bonuses to its 7,000 employees.

The Nevada Gaming Control Board recommended Wednesday that this move be approved. This is because Apollo’s operating subsidiary is privately owned. The request is expected to be considered by the Nevada Gaming Commission on November 17.

Representatives from The Venetian didn’t specify how much workers would receive in bonuses, but it will be revealed at an employee town hall meeting. however, they stated that every employee would be given the same amount as Las Vegas Review-Journal reported.

To ensure that the company has a healthy financial balance and financial stability, the Control Board was required to review the distribution.

Robert Brimmer, The Venetian’s chief financial officer, stated that the resort has significantly exceeded expectations since Apollo purchased the property from Las Vegas Sands Corp. for $6.4 billion in February. This deal was announced for the first time in March 2021.

He also said the company has had “higher-than-expected” financial results in the hotel, casino, food and beverage, and meeting and convention business. Since the Apollo team took control, it has maintained high occupancy and room rates.

The CFO stated that plans to invest $1B in the property over the next three to five years. This would include remodeling rooms, expanding and upgrading the casino floor and adding more slots machines. This investment would be one the most significant upgrades to a Strip venue in years .

Members of the Control Board expressed concern about The Venetian’s financial stability due to Apollo’s “not having a long track record operating it.” Apollo’s private equity partner Daniel Cohen stated that the company didn’t anticipate such a large rebound after the pandemic . However, the company achieved higher profitability once leaders became more familiar with the operation.

Cohen stated that at the time the transaction was signed in March 2021 the company was underwriting it “at a very other point in history“, reports Review Journal. He noted that although we were in recovery at the time of closing the transaction, we didn’t have any idea about the business. “We didn’t even know the business plan and it took us three to four months to figure that.”