New York private equity firm Blackstone Group announced yesterday it will be selling The Cosmopolitan of Las Vegas in a $5.65 billion deal, with MGM Resorts International taking over hotel operations. MGM will purchase the resort’s operations for $1.625 billion, according to the Las Vegas Review-Journal, and will enter a long-term lease with the new owners, which include Panda Express billionaires Andrew and Peggy Cherng, as well as real estate investment firm Stonepeak.
The 3,000-room Cosmopolitan will extend MGM’s presence on The Strip after its sale of Bellagio, MGM Grand and Mandalay Bay properties to Blackstone in 2019, and Aria and Vdara properties to Blackstone in 2021.
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said MGM Resorts CEO & President Bill Hornbuckle in a press release. “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.”
Blackstone stated that the Cosmopolitan’s 3,000 employees will keep their jobs, and that the deal is expected to close in early 2022.
Recent changes of hands on The Strip include the sale of The Venetian and Sands Expo to VICI Properties and Apollo Global Management earlier this year, and the sale of Caesars Entertainment resort casinos to Eldorado Resorts in 2019 for $17.3 billion.