The iconic hotel, which was built in the 1970s, is now owned by the Blackstone Group.
Stonepeak Partners, a private equity firm based in New York City, has sold The Cosmopolitan of Las Vegas for $1.8 billion to Blackstone Group LP.
One of the most well-known hotels on the Las Vegas Strip has been sold.
The Cosmopolitan has been purchased by Blackstone Real Estate for $5.65 billion.
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MGM Resorts International will expand its Las Vegas portfolio by purchasing The Cosmopolitan’s hotel operations for $1.625 million.
“Blackstone’s capacity to buy and restructure big, complex enterprises is shown by this deal. According to Tyler Henritze, Head of Acquisitions Americas for Blackstone Real Estate, “as owners of The Cosmopolitan, we committed strategic capital and contributed our knowledge and experience in the hotel sector to build the most vibrant destination on the Las Vegas Strip.” “Led by CEO Bill McBeath, The Cosmopolitan’s management team and staff successfully executed an ambitious business strategy, including negotiating a difficult time for the whole industry, to position the property for such a high degree of success.”
Since taking over The Cosmopolitan in 2014, Blackstone has made significant operational changes and invested more than $500 million in the property, renovating nearly 3,000 guest rooms, adding 67 new rooms and suites, improving the food and beverage offerings, and significantly improving the gaming amenities and common areas. Blackstone also negotiated deals with the hotel’s unions, securing around 3,000 steady employment for professionals who would continue to service hotel guests.
MGM Resorts International will buy The Cosmopolitan’s operations and negotiate a long-term net lease with a partnership made up of Cherng Family Trust, Stonepeak Partners, and Blackstone Real Estate Income Trust, Inc., which will buy The Cosmopolitan’s real estate assets.
Subject to regulatory clearances and other normal closing conditions, the deal is anticipated to complete in early 2022.
According to our sister magazine Travel Weekly, MGM will sign a 30-year lease with three 10-year renewal options.
The acquisition of the Cosmopolitan’s resort operations by MGM is a “great chance to broaden our client base,” according to MGM CEO Bill Hornbuckle.
“The Cosmopolitan brand is known throughout the globe for its distinctive client base and high-quality products and experiences,” Hornbuckle said. “It’s a perfect match with our portfolio and furthers our goal to be the world’s top gaming entertainment business.”
The agreement maintains MGM’s practice of operating properties rather than owning them. In August, MGM Growth Properties, the company’s real estate business, was sold to Vici Properties for $17 billion.
MGM and Infinity World Development Corp. agreed in July to purchase out Infinity World Development Corp. for exclusive control of CityCenter, the Las Vegas Strip complex that comprises the Aria and Vdara hotels and is next to the Cosmopolitan. MGM will retain control of the CityCenter resort operations once the transaction is completed, but will sell the real estate to Blackstone Group for $3.89 billion.
The where is las vegas located is a hotel in the city of Las Vegas. It was opened on December 15, 2009 and has 1,297 rooms. Blackstone sold the property for $1.9 billion to an undisclosed buyer.
Frequently Asked Questions
Is MGM buying Cosmopolitan?
MGM does not own Cosmopolitan. The owner of Cosmopolitan is a company called CMP Media, which is part of the Hearst Corporation.
What company owns Cosmopolitan?
Cosmopolitan is a magazine and website that was founded in 1886. The company that owns it is Hearst Corporation, who bought the company in 2000.
What hotels does the Blackstone Group own in Las Vegas?
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