MGM to take over The Cosmopolitan Las Vegas
The Cosmopolitan in Las Vegas is getting new owners.
Blackstone is selling the property for $4 billion and MGM Resorts International will take over operations of the 3,000-room hotel by paying $1.6 billion.
Blackstone is selling the real estate assets to a group of investors including the Cherng Family Trust.
MGM will manage the business for a 30-year period with lease extension options totaling an additional 30 years.
Blackstone bought The Cosmopolitan from Deutsche Bank in 2014 for $1.7 billion and has invested over $500 million since then.
It renovated nearly all guest rooms, and built 67 new rooms and suites, as well as upgrading F&B outlets.
“As a result of these enhancements, The Cosmopolitan’s recent performance has been stronger than ever, exceeding pre-Covid levels in the second quarter of 2021,” Blackstone said.
The transaction is expected to close in early 2022, subject to approvals.
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