MGM Resorts International, having closed on its deal to acquire The Cosmopolitan of Las Vegas, finds its roster of properties on the Strip considerably enlarged. The deal – done in concert with Blackstone, which acquired the operational side of the property – is worth $1.625bn.
The details of the deal include a 30-year lease with three options to renew every decade. MGM Resorts will pay rent at a rate of $200m per annum, with this figure escalating 2% every year for the first 15 years and greater than 2% (though capped at 3%) for the subsequent 15 years.
The whole deal included a partnership with Stonepeak, the Cherng Family Trust, as well as the Blackstone Real Estate Income Trust, Inc., these having acquired The Cosmopolitan’s real estate assets.
Among the features of the newly-acquired destination are 3,033 recently-renovated rooms, a 110,000 square-foot casino, 26 different food and drinks offerings, a 3,200-seat theater, a nightclub, retail space, a spa and gym space, as well as ample meeting space for groups.
The Cosmopolitan is coming off of a successful year: the 12 months ending March 31, 2022 saw $1.1bn in revenue and $416m in adjusted EBITDA.
Speaking on the matter, MGM Resorts CEO Bill Hornbuckle had the following to say: “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 Strip’s premier resorts with an iconic brand, well-curated experiences and a loyal customer base.
“We couldn’t be more excited to bring them into our portfolio of world-class operators.”
