Thursday, October 21, 2021

Blackstone Vending Vegas Hotel Cosmopolitan on $ 5.65 Billion Offer

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The owner of The Cosmopolitan of Las Vegas is selling the 3,000-room Las Vegas Strip hotel in a $5.65 billion deal. New York private equity firm Blackstone said Monday that the new owners will be the Cherng Family Trust, headed by Panda Express billionaires Andrew and Peggy Cherng; real estate investment firm Stonepeak Partners; and a Blackstone real estate fund. MGM Resorts will take over operations in a side deal. The transaction needs regulatory approval and is projected to close in the first half of 2022. Blackstone says it has agreements with unions for about 3,000 employees to keep their jobs.

The Cosmopolitan includes a casino, the Marquee nightclub, several restaurants and a fourth-floor swimming pool overlooking Las Vegas Boulevard. It opened in 2010 at a cost of about $4 billion and sits between MGM Resorts’ Bellagio and the City Center project that includes the Aria Resort & Casino and Vdara Hotel & Spa.

The transaction needs regulatory approval and is projected to close in the first half of 2022.

Blackstone bought it in 2014 from Deutsche Bank for about $1.7 billion and said Monday it invested some $500 million in renovations.

MGM Resorts, a major presence on the Strip, will run the hotel complex. It already owns 13 Las Vegas Boulevard properties, including the MGM Grand, Mandalay Bay and Delano Las Vegas and New York-New York, as well as the T-Mobile Arena and the Park retail promenade.

The property, along with all other casinos in Nevada, was closed due to the coronavirus pandemic from mid-March to early June 2020. But Blackstone said the Cosmopolitan’s performance in the second quarter of 2021 exceeded pre-COVID levels.

MGM Resorts executives called The Cosmopolitan a good fit with other company properties and said the deal should drive growth at the hotel.

News Summary:

  • Blackstone Vending Vegas Hotel Cosmopolitan on $ 5.65 Billion Offer
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