Blackstone selling Vegas hotel Cosmopolitan in $5.65B deal

The owner of The Cosmopolitan of Las Vegas is selling the 3,000-room Las Vegas Strip hotel in a $5.65 billion deal

Via AP news wire
Monday 27 September 2021 21:00
MGM Resorts-Cosmopolitan Operations
MGM Resorts-Cosmopolitan Operations

The owner of the Cosmopolitan of Las Vegas the New York private equity firm Blackstone is selling the 3,000-room Las Vegas Strip hotel in a $5.65 billion deal with a partnership that plans to contract with casino giant MGM Resorts International to operate the property.

The new owners — the Cherng Family Trust, headed by Panda Express billionaires Andrew and Peggy Cherng; real estate investment firm Stonepeak Partners; and a Blackstone real estate fund, Real Estate Income Trust Inc. — will pay more than $4 billion to acquire the property, Blackstone said Monday. MGM Resorts will pay $1.6 billion to take over the hotel's operations.

Blackstone said it has agreements with unions for about 3,000 employees to keep their jobs.

The transaction needs regulatory approval and is projected to close in the first half of 2022.

The Cosmopolitan includes a casino, the Marquee nightclub, several restaurants and a fourth-floor swimming pool overlooking Las Vegas Boulevard. It 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.

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 the coronavirus pandemic from mid-March to early June 2020. But Blackstone said the Cosmopolitan's performance in the second quarter of 2021 exceeded pre-COVID levels.

MGM Resorts, a major presence on the Strip, will run the hotel complex. It 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.

MGM Resorts executives called The Cosmopolitan a good fit with other company properties and said the deal should drive growth at the hotel.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in