The Cosmopolitan of Las Vegas at 3708 Las Vegas Blvd S and Blackstone CEO Stephen Schwarzman (Google Maps, Getty)
Blackstone is again seeking a high roller to purchase the Cosmopolitan of Las Vegas, this time with over $ 5 billion on offers for the 11-year-old resort casino.
One potential applicant considering an offer is Apollo Global Management, according to Bloomberg. MGM Resorts International reportedly also wants to enter as a potential property manager.
The Cosmopolitan struggled out of the gate after Deutsche Bank AG built the property, which opened in 2010, for $ 3.9 billion. Blackstone bought the property in 2014 for $ 1.7 billion.
His luck turned under Blackstone, who tried to sell the 110,000-square-foot casino for $ 4 billion two years ago, more than double what it paid for it in 2014.
Blackstone has invested $ 500 million in renovations, including converting the top four floors into 21 suites and building 18 additional bars and restaurants. Before the pandemic, the average daily room rate of $ 330 was the highest on the Las Vegas Strip.
Casino real estate is selling for big bucks across Las Vegas as REITs seek to split the cost while casino operators seek to retain administrative duties while giving up property in favor of international markets.
Vici Properties acquired MGM Growth Properties for $ 17.2 billion last month. The acquisition added another 15 entertainment resorts to Vici Properties’ portfolio, with MGM Growth holdings including the Excalibur, Luxor and Mirage casinos.
Earlier this year, Bally’s agreed to buy the Tropicana Hotel & Casino operations for $ 150 million, with REIT Gaming & Leisure retaining ownership and continuing to collect rent.
[Bloomberg] – Holden Walter-Warner
Contact Walter Warner Holden
