MGM Resorts International announced they will be acquiring The Cosmopolitan of Las Vegas from Blackstone, for cash consideration of $1.625 billion. The Cosmopolitan opened in 2010, and was acquired by Blackstone in 2014.
With the purchase, MGM will enter into a 30-year lease agreement, with three 10-year renewal options, in a partnership with Stonepeak Partners, Cherng Family Trust, and Blackstone Real Estate Income Trust, Inc.
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said MGM Resorts CEO & President Bill Hornbuckle. “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.”
The Cosmopolitan currently has 3,032 rooms and suites that were renovated in 2018, a 110,000 square foot casino, 26 food and beverage options, a 3,200-seat theater, the Marquee nightclub, 243 square feet of meeting space, 21,000 square feet of leased retail spa, and a 40,000-square foot spa and fitness facility.
In the 12 months prior to the COVID-19 pandemic (ending Feb. 29, 2020), The Cosmopolitan generated $959 million of net revenue, and in the second quarter of 2021, it generated $234 million of net revenue.
“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,” said MGM Resorts CFO Jonathan Halkyard. “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.”
The purchase is still subject to regulatory approvals and is expected to close in the first half of 2022.