After securing approval from the Nevada Gaming Commission, MGM Resorts has closed its transaction to operate the Las Vegas property.
US.- MGM Resorts International has closed a deal to acquire The Cosmopolitan’s operations for $1.625bn. It closed the transaction with Blackstone after securing approval from the Nevada Gaming Commission.
MGM Resorts’ adds The Cosmopolitan to its properties on the Las Vegas Strip, including the Bellagio and CityCenter, both leased from Blackstone. MGM Resorts has entered a 30-year lease agreement with Stonepeak, Cherng Family Trust, and Blackstone Real Estate Income Trust, a three-way partnership that acquired The Cosmopolitan’s real estate assets.
The operator will pay an initial yearly rent of $200m, escalating annually at 2 per cent for the first 15 years and then up to 3 per cent thereafter. MGM Resorts also retains three 10-year renewal options.
MGM Resorts CEO and president, Bill Hornbuckle, said: “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 operations.”
“We look forward to improving upon The Cosmopolitan’s already strong results by offering their customers access to the extensive and exclusive amenities and other benefits only MGM Resorts can provide.”
Last week, The Cosmopolitan Casino awarded its employees a bonus. The venue owned by the Blackstone Group will give its 5,400 workers a $5,000 bonus each. Bill McBeath, president and CEO of The Cosmopolitan, made the announcement at the casino’s Chelsea Theater during a company event.
The Cosmopolitan opened in December 2010 and underwent improvements after Blackstone’s acquisition of the property in 2014. It hosts 3,027 rooms in two 603-foot towers. The casino floor is 110,000-square-feet. There are also 300,000 square feet of retail and food and beverage locations, and a 3,200-seat theatre.
MGM Resorts makes €576.6m sweep for Sweden’s LeoVegas
The board of the Sweden-based online gaming operator LeoVegas has unanimously backed a SEK61 (€5.85) per share offer from the US casino giant MGM Resorts. The deal values LeoVegas at €576.6m and would mark MGM Resorts’ entry into the European online gaming market.
MGM’s offer for the entirety of LeoVegas’ share capital represents a 44 per cent premium over its closing share price on April 29. It intends to fund the deal through existing cash reserves.