Blackstone Selling Vegas Casino for $5.65bn, Firm’s Most Profitable Property Deal

Sep 27, 2021 | News

Blackstone has reached an agreement to sell the Cosmopolitan casino and hotel on the Las Vegas Strip for $5.65bn, the company said on Monday, and told investors in a private letter that the sale is the company’s most profitable of a single asset ever.

Blackstone acquired the two-tower property for about $1.8bn seven years ago and spent an additional $500m on upgrades, including renovating the nearly 3,000 guest rooms, building luxury suites and adding new restaurants and bars.

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As part of the deal, MGM Resorts International would buy the operations of The Cosmopolitan for $1.63 billion.

MGM would also enter into a long-term lease agreement with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust Inc, which will acquire The Cosmopolitan’s real estate assets.

Blackstone had acquired the property for about $1.7bn in 2014 and spent $500m on upgrades, including renovating nearly 3,000 guest rooms and adding new restaurants and bars.

It said The Cosmopolitan’s recent performance has been stronger than ever, exceeding pre-pandemic levels in the second quarter of this year.

The deal is expected to close in the first half of 2022.

Source: Wall Street Journal

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