The Venetian and Palazzo hotels will terminate their affiliation with InterContinental Hotels Group (IHG) on January 1, 2025, concluding a partnership that began in October 2010. The 10-year deal was later amended to a 15-year agreement.
The end of this partnership will result in the removal of 7,092 rooms, about 0.7% of IHG’s overall system size. Despite this reduction, IHG representatives stated that the partnership contributed “less than $1 million,” or just 0.1% of the company’s revenue from fee business in 2023.
Elie Maalouf, CEO of IHG, said that the termination “will have no effect” on the company’s profit and loss figures. “The legacy agreement is from 15 years ago, and we (are) a very different company from 15 years ago,” he said, as per Las Vegas Review-Journal.
The decision to end the partnership could be linked to a change in ownership. IHG originally entered into the agreement with Las Vegas Sands, which sold The Venetian and Palazzo to Apollo Global Management in 2021 for $6.25 billion.
While IHG did not specify the reasons for the partnership’s conclusion, the company indicated that the financial implications would be minimal.
This announcement follows other hotel movements at the Las Vegas Strip, with MGM Resorts International’s recent decision to rebrand the Delano at Mandalay Bay as a W hotel. Currently, Apollo has not revealed any plans for a replacement for IHG at The Venetian and Palazzo.
Original article: https://www.yogonet.com/international/noticias/2024/10/23/82889-venetian-and-palazzo-to-end-partnership-with-ihg-by-january-2025
