MGM Resorts International has closed its transaction with Blackstone to acquire the operations of The Cosmopolitan Las Vegas for $1.625 billion. The deal was first announced last September. With the closing of the transaction, The Cosmopolitan of Las Vegas officially joins MGM Resorts' roster of brands along the Las Vegas Strip.
In the trailing 12 months ended March 31, The Cosmopolitan generated $1.1 billion of net revenue and $416 million of adjusted earnings before interest, taxes, depreciation, amortization and restructuring or rent costs.
The Cosmopolitan opened in December 2010 and underwent capital improvements following Blackstone's acquisition of the property in 2014. The property has:
- 3,033 rooms and suites that were renovated in December 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
- 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, 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 consumer price index increase (capped at 3 percent) thereafter.
A version of this story ran on Hotel Management's sister site, Travel Agent Central.