The sale of the SLS Las Vegas Hotel and Casino is likely going to be delayed into 2018. This news comes after a spokesman for the transaction revealed that the two parties are still negotiating over the final price of the property. The SLS Las Vegas is being sold by Stockbridge Capital partners to Alex Meruelo’s firm, and the deal was supposed to be finalized by the end of September 2017.
SLS Las Vegas Price Delays Deal
The deal between Meruelo and Stockbridge was announced back in May 2017. However, the two parties haggled over the price after the announcement, which delayed the signing of the deal. A director for Meruelo’s company did recently come out and report that everything has been finalized now. All that is needed for the deal to go through is approval from the Nevada Gaming Control Board.
While the purchase price of the SLS Las Vegas Resort hasn’t been made publicly available, it is thought that the recent sales of other nearby properties may have affected the price. Several other casinos in the area have recently been sold for between $310 and $360 million. These prices may have limited how much Meruelo was willing to pay and caused the lengthy negotiations. Meruelo has quite a reputation for purchasing struggling companies and working on turning them around.
SLS Las Vegas Fails to Take Off
Another aspect in favour of the purchasers is the fact that the SLS Las Vegas has always struggled to generate acceptable income. The original owner of the SLS Las Vegas set out to create a modern resort that would appeal to millennials and club goers. Over $400 million was poured into the location during renovations, adding restaurants with celebrity chefs, nightclubs and more.
However, the hotel never took off and attracted its target market. Part of this is thought to be its location, which is on the northern end of the Las Vegas strip. The SLS Las Vegas was also surrounded by other failed or failing, resorts.