Cosmo sold in $5.65B deal; MGM to take over resort operations for Cosmo Hotel Las Vegas

 

Blackstone Group sold the Cosmo Hotel for $5.65 billion. NYSE: MGM Resorts International acquiring the resort operations for $1.625 billion. The deal will close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.

MGM will enter into long-term lease with a partnership between the Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust Inc., including  real estate  holdings of the Cosmopolitan.

”Buying the 3,000-room resort offers the company “an incredible opportunity to expand our customer base.” “We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” Hornbuckle said. “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.” MGM CEO & President Bill Hornbuckle said.

“With over $500 million of capital invested to upgrade the property since 2014, The Cosmopolitan offers an incredible opportunity to expand our customer base and will provide greater depth of choices for our guests in Las Vegas,” said MGM Resorts CFO Jonathan Halkyard. “We believe that we can leverage MGM Resorts’ expertise, operating platform and other highly achievable synergies to continue providing best-in-class service, while driving growth for the property.”

Before to the COVID-19 pandemic in the trailing 12 months ended February 29, 2020, The Cosmopolitan generated $959 million of net revenue and $316 million of adjusted EBITDAR1. In the second quarter ended June 30, 2021, the property generated $234 million of net revenue and $92 million of adjusted EBITDA1.Calculated as EBITDA before rent, impairment loss and pre-opening expenses, and after corporate expenses.

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