Blackstone Inc, an American alternative investment management company based in New York City, has reached an agreement to sell The Cosmopolitan of Las Vegas in a deal valued at $5.65 billion, with MGM Resorts.
New York private equity firm Blackstone, the owner of the Cosmopolitan of Las Vegas, is selling the 3,000-room Las Vegas Strip hotel with a partnership that plans to contract with casino giant MGM Resorts International to operate the property.
MGM Resorts already owns 13 Las Vegas Boulevard properties, including the MGM Grand, Mandalay Bay and Delano Las Vegas and New York-New York, as well as the T-Mobile Arena and the Park retail promenade.
The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.
Executives at MGM Resorts consider Cosmopolitan a perfect match with other company properties and believe the deal should drive the hotel’s growth.
MGM Resorts CEO & President Bill Hornbuckle, said:
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,”
“The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.”
MGM Resorts CFO Jonathan Halkyard, commented:
“With over $500 million of capital invested to upgrade the property since 2014, The Cosmopolitan offers an incredible opportunity to expand our customer base and will provide greater depth of choices for our guests in Las Vegas,”
“We believe that we can leverage MGM Resorts’ expertise, operating platform and other highly achievable synergies to continue providing best-in-class service, while driving growth for the property.”
About Cosmopolitan of Las Vegas
The Cosmopolitan of Las Vegas was opened in 2010 at a cost of about $4 billion and sits between MGM Resorts’ Bellagio and the City Center project that includes the Aria Resort & Casino and Vdara Hotel & Spa. It includes a casino, the Marquee nightclub, several restaurants, and a fourth-floor swimming pool overlooking Las Vegas Boulevard.
The hotel ran into financial trouble during its construction, and Blackstone bought it in 2014 from Deutsche Bank for about $1.7 billion and said Monday it invested some $500 million in renovations.
The property, along with all other casinos in Nevada, was closed due to COVID-19 from mid-March to early June 2020. But Blackstone said the Cosmopolitan’s performance in the second quarter of 2021 exceeded pre-COVID levels.