MGM Closes on Acquisition of Operations of The Cosmopolitan

MGM Resorts International on Tuesday announced the closing of its transaction with Blackstone to acquire the operations of The Cosmopolitan Las Vegas for $1.625 billion. With the closing of the transaction, The Cosmopolitan of Las Vegas officially joins MGM Resorts' roster of brands along the Las Vegas Strip. The deal was first announced in September 2021.

According to MGM Resorts CEO and President Bill Hornbuckle, “The Cosmopolitan of Las Vegas has already established itself as one of the Strip's premier resorts with an iconic brand, well-curated experiences and a loyal customer base.

In the trailing 12 months ended March 31, 2022, The Cosmopolitan generated $1.1 billion of net revenue and $416 million of adjusted EBITDAR.

The Cosmopolitan, a contemporary luxury resort and casino, opened in December 2010 and underwent significant capital improvements following Blackstone's acquisition of the property in 2014. The property has:

  • 3,033 rooms and suites that were renovated in December of 2018, most of which offer terraces overlooking the Las Vegas Strip
  • A 110,000-square-foot casino, with high-end gaming areas for VIP guests
  • 26 food and beverage offerings, with 19 new concepts introduced in the last four years,
  • A 3,200-seat theater (The Chelsea),
  • The Marquee nightclub and dayclub that hosts top DJs from around the world
  • 36,000 square feet of leased retail space
  • A 43,000-square-foot spa and fitness facility
  • 243,000 square feet of meeting space with technology to accommodate both large and small groups

MGM Resorts entered into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc., which acquired The Cosmopolitan's real estate assets. MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2 percent for the first 15 years and the greater of 2 percent or the CPI increase (capped at 3 percent) thereafter.

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