MGM Acquiring Cosmopolitan of Las Vegas for $5.65 Billion
The BetMGM Casino operations will soon have a new Las Vegas Strip property.
MGM Resorts International entered into a deal to buy The Cosmopolitan of Las Vegas for a total value of $5.65 billion, with Blackstone selling the resort operations portion to MGM for $1.625 billion cash considerations, according to the Las Vegas Review-Journal. The deal includes a 110,000-square-foot casino.
”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,” MGM Resorts CEO & President Bill Hornbuckle said in a news release. “We look forward to welcoming The Cosmopolitan's guests and employees to the MGM Resorts family."
CHECK OUT: Top U.S. online casinos
Blackstone purchased the property in 2014 for $1.73 billion, the Review-Journal reported. Blackstone invested hundreds of millions to improve the property since then.
”This transaction underscores Blackstone’s ability to acquire and transform large, complex assets,” Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate, said in a company release. “As owners of The Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip.”
MGM Resorts will agree to a 30-year lease deal with three 10-year renewal options, paying an initial annual rent of $200 million, in a partnership with Stonepeak Partners, the Cherng Family Trust and Blackstone Real Estate Income Trust, according to MGM.
The Cosmopolitan complex has more than 3,000 rooms, the casino, a 3,200-seat theater and a nightclub, plus restaurants, retail space, a spa and fitness facility and more.
It is expected that the deal will close in the first half of 2022, pending approvals.
Other Recent MGM Deals
The MGM brand has been busy as the gambling industry continues to grow in the U.S. market.
Just last week, the BetMGM Sportsbook (the sports betting part of the MGM operation) agreed to a deal with Gold Strike Casino Resort in Tunica, Mississippi, to offer sports wagering there. The deal is for both retail and mobile betting, though mobile bets can only be placed inside the casino per Mississippi regulations.
BetMGM is also set to launch a sportsbook at the Casino del Mar at La Concha Resort in San Juan, Puerto Rico, pending the launch of sports betting in the U.S. territory. Sports betting has been legalized in Puerto Rico but has yet to be implemented.