- MGM Resorts has completed their acquisition of The Cosmopolitan of Las Vegas.
- The entire transaction is worth $5.65 billion USD and includes a sale and leaseback scheme.
- MGM Resorts announced the deal in mid-February 2022.
The Cosmopolitan of Las Vegas is now officially a MGM Resorts property. This is the result of MGM Resorts closing on their massive transaction to acquire the property from the Blackstone Group. The entire deal was announced as being worth $5.65 billion USD though it’s a bit more complex than MGM just scratching out a check. MGM Resorts paid $1.625 billion USD to acquire the operations of The Cosmopolitan while the underlying real estate was sold to a group of buyers that includes a Blackstone backed real estate trust.
All eyes will now be watching MGM to see what they do with the property. Generally speaking, they don’t need to ‘fix what ain’t broke’. The Cosmopolitan has been a huge hit on a number of levels but stumbled out of the gate and struggled to gain any type of financial traction. The resort lost hundreds of millions during their first few years which led to its purchase by the Blackstone Group in 2014. Blackstone solidified the balance sheet and put over $500 million USD into property upgrades.
MGM takes over a property that is already well positioned in the marketplace. The Cosmopolitan has some excellent restaurants (IMO Holsteins is the best burger in Las Vegas and that covers a lot of ground), a decent selection of bars, several concert venues, a nice hotel with some of the most epic room views in the city, and a sophisticated though not snooty brand identity.
Here’s a rundown of the property’s amenities from the press release announcing the deal’s closing:
The Cosmopolitan, a leading contemporary luxury resort and casino, opened in December 2010 and underwent significant capital improvements following Blackstone’s acquisition of the property in 2014. The property features:
- 3,033 rooms and suites that were renovated in December of 2018, most of which feature terraces overlooking the famed Las Vegas Strip,
- a 110,000 square-foot casino, with high-end gaming areas for VIP guests,
- 26 on-trend food and beverage offerings, with 19 new concepts introduced in the last four years,
- a 3,200-seat theater (The Chelsea),
- Marquee nightclub and dayclub that hosts top DJs from around the world,
- 243,000 square feet of centrally located meeting space, featuring state-of-the-art technology to accommodate both large and small groups,
- 36,000 square feet of leased retail space, and
- a 43,000 square foot spa and fitness facility.
Here’s what MGM Resorts CEO and President Bill Hornbuckle has to say about his company’s acquisition of The Cosmopolitan:
“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’re also thrilled to have the talented group of CoStars from The Cosmopolitan joining the MGM Resorts family. 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.”
As for the sportsbook, it will transition from the current William Hill operation to BetMGM within the next 90 days. The Cosmopolitan was one of the first sportsbooks run by Cantor Gaming, but became a William Hill operation in August 2020.
The Cosmopolitan has been one of my favorite properties in town since it opened. Assuming that MGM Resorts is smart enough to stay ‘on brand’ it should continue to be.