American casino operator MGM Resorts International has announced that it is now running the prestigious The Cosmopolitan of Las Vegas property following the completion of an around $1.62 billion deal with The Blackstone Group Incorporated.
The Las Vegas-headquartered firm used an official Tuesday press release to detail that the arrangement forms part of a larger $5.65 billion alliance that has given it the right to operate the 3,033-room venue for the next three decades in exchange for agreeing to pay an initial annual rent of $200 million. The company revealed that this understanding has also seen a group of investors including Stonepeak, Cherng Family Trust and Blackstone Real Estate Income Trust Incorporated take over the real estate assets of the Nevada development.
MGM Resorts International’s operating portfolio already ran to ten Las Vegas Strip venues including the Excalibur Hotel and Casino, Bellagio Las Vegas, MGM Grand Las Vegas and Luxor Las Vegas facilities while the firm inked a deal in December to sell its ageing Mirage Las Vegas property to Hard Rock International for roughly $1.07 billion. The company’s President and Chief Executive Officer, Bill Hornbuckle (pictured), disclosed that the latest deal is to moreover see the yearly rent for The Cosmopolitan of Las Vegas grow by 2% a year until 2037 and then be pegged to the consumer prices index capped at 3%.
Read a statement from Hornbuckle…
“This is a big moment for our company and for the Las Vegas Strip. The Cosmopolitan of Las Vegas has already established itself as one of the Las Vegas Strip’s premier resorts with an iconic brand, well-curated experiences and a loyal customer base and we couldn’t be more excited to bring these into our portfolio of world-class operations.”
Opened in December of 2010, The Cosmopolitan of Las Vegas was purchased by The Blackstone Group Incorporated some four years later and features a 110,000 sq ft casino offering an array of approximately 1,300 slots as well as 17 high-limit gaming tables. MGM Resorts International divulged that the Clark County property with its 3,200-seat The Chelsea theater, 26 food and beverage outlets and 43,000 sq ft spa and fitness facility racked up net revenues of $1.1 billion for the twelve months to the end of March alongside $416 million in associated adjusted earnings before interest, tax, depreciation and amortization.
Hornbuckle’s statement read…
“We’re also thrilled to have a talented group of co-stars from The Cosmopolitan of Las Vegas joining our family. We look forward to improving upon The Cosmopolitan of Las Vegas’ already strong results by offering its customers access to the extensive and exclusive amenities and other benefits only MGM Resorts International can provide.”