MGM Resorts International announced today that it has closed its deal with Blackstone to acquire Las Vegas’ Cosmopolitan operations with $1.625 billion in cash. Las Vegas’ Cosmopolitan has officially joined MGM Resorts’ iconic brand list along Las Vegas Streep at the end of the deal.
“This is an important moment for our company and for the Las Vegas Streep. With its iconic brand, well-done experience, and loyal customer base, Las Vegas’ Cosmopolitan has already established itself as one of the best resorts in the strip. Bill Hornbuckle, CEO and President of MGM Resorts, said, “We’re more than excited to bring them into our world-class operating portfolio.” “We are also excited to have Cosmopolitan’s talented CoStars Group join the MGM Resorts family. We look forward to improving Cosmopolitan’s already strong results by giving customers access to a wide range of exclusive amenities and other benefits that only MGM Resorts can offer.”
For the 12-month period ended March 31, 2022, Cosmopolitan generated $1.1 billion in net income and $416 million in adjusted EBITDAR.
Cosmopolitan is a modern luxury resort and casino that opened in December 2010, and its capital significantly improved with Blackstone’s acquisition of the building in 2014:
- It features 3,033 rooms and suites that were renovated in December 2018, and a terrace overlooking most of the famous Las Vegas Streets,
- There’s a 110,000 square foot casino with a high-end gaming space for VIP guests,
- 26 on-trend food and beverage offerings, 19 new concepts introduced in the last 4 years,
- The 3,200-seat theater (The Chelsea),
- The marquee nightclub and the day club with the best DJs from all over the world,
- 243,Centered at 000 square feet, conference space features state-of-the-art technology that can accommodate both large and small groups,
- 36,000 square feet of rental retail space and
- 43,000 square feet of spa and fitness facilities.
MGM Resorts partnered with Blackstone Real Estate Income Trust, which acquired real estate assets from Stone Peak, Chern Family Trust and Cosmopolitan, to sign a 30-year lease with three 10-year renewal options. MGM Resorts pays an initial annual rent of $200 million, rising 2% annually for the first 15 years and then greater than 2% or CPI (upper 3%).