An Announcement About the Takeover of the Cosmopolitan of Las Vegas

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: May 23, 2022

The prestigious The Cosmopolitan of Las Vegas, located in Nevada, is now being run by MGM Resorts International, according to an announcement by the American casino operator. This follows the completion of a deal with The Blackstone Group Incorporated for around $1.62 billion.

In a press release, the Las Vegas-based firm details the arrangement to be part of a broader $5.56 billion deal. It is an alliance that gives them the right to operate the 3,033-room property for the next 30 years in exchange for committing to pay an initial annual rent of $200 million.

According to the company, a group of investors, including Blackstone Real Estate Income Trust Incorporated, Cherng family Trust, and Stonepeak, have taken control of the real estate assets of the Nevada development.

MGM Resorts President Expresses Excitement About the Takeover

MGM Resorts International’s working portfolio includes ten Las Vegas Strip properties, including the Luxor Las Vegas, MGM Grand Las Vegas, Bellagio Las Vegas, and Excalibur Hotel and Casino.

In December, the firm agreed to sell its old Mirage Las Vegas property for about $1.07 billion to Hard Rock International.

Bill Hornbuckle, the President and Chief Executive Officer of MGM Resorts International, disclosed that the new deal will also see The Cosmopolitan of Las Vegas’ yearly rent grow by 2% annually until 2037. This will then be pegged to the customer price index with a cap of 3%.

Hornbuckle revealed in a statement that it is a historic occasion for the company and the Las Vegas Strip. According to him, The Cosmopolitan of Las Vegas has proved to be among the most premier of resorts on the Las Vegas Strip with a firm client base and an iconic brand.

“We’re also thrilled to have the talented group of CoStars from?The Cosmopolitan?joining the?MGM Resorts?family. We?look forward to?improving upon?The Cosmopolitan’s already strong results by offering their customers?access to the?extensive and exclusive amenities?and other benefits only?MGM Resorts?can provide,” – he said.

For those who are not familiar, Hornbuckle joined MGM Resorts International in 1998. At that time, he was holding the position of Executive Vice President of Operations at the MGM Grand Las Vegas.

Features of the Cosmopolitan Property

The Cosmopolitan of Las Vegas, a leading casino and high-end resort, was established in December 2010. It was bought four years later by the Blackstone Group Incorporated. This resort underwent massive cash improvements after the purchase by Blackstone Group.

The property contains a 110,000 sq ft casino with approximately 17 high-limit gaming tables. It also includes 3,033 suites and rooms reconstructed in December 2018, a 43,000 sq ft fitness and spa facility, 26 trendy dishes and drinks offerings, and a 3,200-seat theater.

Additional features of the property include a Marquee nightclub and day club where the world’s best DJs perform, a leased retail space of 36,000 sq ft, and a centrally located 243,000 sq ft of meeting space with its cutting-edge tech features to welcome groups regardless of their size. They are also not just content with expanding on their land-based casinos, but they have been bolstering their online presence too. They have recently made an offer to purchase Leo Vegas in a bid to expand their online portfolio outside of the US.