LAS VEGAS (KTNV) – MGM Resorts International announced an agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas.
The company reported the deal on Monday, which is a cash payment of $ 1.625 billion.
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said Bill Hornbuckle, CEO and President of MGM Resorts. “The Cosmopolitan brand is known around the world for its unique customer base, quality products and experiences, which makes it an ideal fit for our portfolio and supports our vision of being the global leader in gaming entertainment. We look forward to serving The Cosmopolitan’s. To welcome guests and employees of the MGM Resorts family. “
Upon completion of the transaction, MGM Resorts will enter into a 30-year lease with three 10-year extension options with a partnership between Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc. that will provide The. Acquires Cosmopolitan Real Estate Assets.
MGM Resorts reports that it will pay an initial annual rent of $ 200 million, which is increased by 2% annually for the first 15 years and then by 2% or the CPI surge (maximum 3%).
“With over $ 500 million in capital invested in modernizing the property since 2014, The Cosmopolitan offers an incredible opportunity to expand our customer base and offer our Las Vegas guests more choices,” said Jonathan Halkyard, CFO of MGM Resorts. “We believe we can leverage MGM Resorts’ expertise, operating platform and other highly achievable synergies to continue delivering world-class service while driving the property’s growth.”
The Cosmopolitan, a modern, world-class luxury resort and casino, opened in December 2010 and has seen significant capital improvements since Blackstone acquired the property in 2014. The property has:
- 3,032 rooms and suites that were renovated in December 2018, most of which have a terrace overlooking the famous Las Vegas Strip,
- a 110,000 square meter casino with high-end gaming areas for VIP guests,
- 26 trendy food and beverage offerings with 19 new concepts introduced in the last four years
- a 3,200-seat theater (The Chelsea),
- Marquee night club and day club with top DJs from all over the world,
- 243,000 square meters of centrally located conference room with the latest technology for large and small groups,
- 21,000 square meters of rented retail space and
- a 40,000 square meter spa and fitness facility.
The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.
