Blackstone Real Estate has agreed to sell the Cosmopolitan of Las Vegas to MGM International for $5.65 billion. MGM will acquire operations of the Cosmopolitan and sign a long-term lease in partnership with the Cherng Family Trust, Stonepeak Partners, and Blackstone Real Estate Income Trust, which will acquire the Cosmopolitan’s real estate assets. The deal is slated to close in early 2022.
“This transaction underscores Blackstone’s ability to acquire and transform large, complex assets. As owners of the Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip,” says Tyler Henritze, head of acquisitions, Americas for Blackstone Real Estate. “The management team and employees at the Cosmopolitan, led by CEO Bill McBeath, flawlessly executed an ambitious business plan, including navigating a challenging period for the entire industry, to position the property for such a high level of success.”
Since acquiring the Cosmopolitan in 2014, Blackstone invested more than $500 million in the renovation of nearly 3,000 guestrooms and construction of 67 new guestrooms and suites, as well as invested funds to enhance onsite dining and gaming.
As of the second quarter of 2021, the Cosmopolitan is currently exceeding pre-COVID performance levels.
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