Venetian Las Vegas Operator Apollo Global Management Added to S&P 500 Index
Apollo Global Management (NYSE: APO), operator of the Venetian resort in Las Vegas, will join the S&P 500 effective December 23, S&P Dow Jones Indices announced. The company's stock jumped 6.14% in after-hours trading following the news.
Venetian Hotel aerial view Las Vegas
Apollo acquired the Venetian's operating rights for $2.25 billion in March 2021, as part of a $6.25 billion deal with Las Vegas Sands where VICI Properties purchased the real estate for $4 billion. Since taking over, Apollo has invested $490 million in property improvements, including new restaurants, a sportsbook, and poker room, with plans to invest an additional $1 billion.
The company has significantly improved the Venetian's performance, enabling employee bonuses and investor dividends. This success marks a turnaround from Apollo's previous Las Vegas venture with Caesars Entertainment, which ended in bankruptcy in 2017.
Apollo is currently expanding its gaming portfolio through the acquisition of Everi and International Game Technology's global gaming and PlayDigital divisions.
Joining Blackstone and KKR as the third private equity firm in the S&P 500 is significant, as the index has trillions of dollars benchmarked to it. Both passive and active funds tracking the index must purchase newly added stocks, explaining Apollo's sharp stock price increase following the announcement.
The company will replace Qorvo Inc. in the index, with changes taking effect at the U.S. market open on December 23.
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