Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioTwo MGM properties on the Las Vegas Strip announced significant developments this week. Realty Income has invested $800 million into CityCenter, home to the ARIA Resort & Casino and the Vdara Hotel & Spa. Additionally, MGM Resorts announced NoMad Las Vegas is set to rebrand into The Reserve at Park MGM.
Realty Income announced the investment in a press release, with the group projecting an initial return of 7.4% and potential increases after five years.
The investment is a joint venture with Blackstone Real Estate, which will retain 100% of the common equity ownership of the property. The casino and hotels will continue to be operated by MGM Resorts International.
This represents Realty Income’s second investment with Blackstone Real Estate, following the joint venture with Bellagio Las Vegas, completed in 2023.
Sumit Roy, Realty Income’s President and CEO, stated, “We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip’s iconic properties.”
Vegas Strip’s Attractive Despite Tourism Decline
CityCenter has remained one of the Strip’s most valuable holdings since its opening in 2009. The companies emphasized that the investment reflects the appeal of “iconic Las Vegas real estate.” It signals that some investor faith in the Strip remains, despite visitor numbers falling for a tenth consecutive month in October.
Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate, said: “We are pleased to reach this agreement and grow our partnership with Realty Income. This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.”
Even with declining visitor numbers, casinos on the Strip have been able to increase their revenue. In October, Clark County casinos generated $1.17 billion, a 5% year-over-year increase. The Strip accounted for $748.9 million, an 8.2% increase, driven by strong table-game hold and consistent high-end play.
The Reserve at Park MGM Rebrand Imminent
Another MGM property is also undergoing a rebrand, with the company announcing that NoMad Las Vegas will begin to transition into The Reserve at Park MGM, with the full rebrand taking effect on December 17.
In the announcement, MGM said that it anticipates The Reserve at Park MGM to join Marriott Bonvoy’s Autograph Collection early next year. This is part of the casino group’s long-term strategic licensing partnership with Marriott International.
MGM Collection with Marriott Bonvoy will encompass 13 destinations on the Las Vegas Strip, including the Aria and Bellagio. The two companies launched the joint venture at the start of last year.
MGM reported $2 billion in revenue from its properties on the Las Vegas Strip for the quarter, down 7% year-over-year. CEO Bill Hornbuckle said the company was addressing value concerns after guest backlash: “We lost control of the narrative over the summer… You can’t have a $29 room and a $12 coffee. We’ve gone through the organization and price-corrected.”
CFO Jonathan Halkyard said the group is seeing positive signs, stating, “Room rates are improving… We’re seeing strong group demand in November and December, driving stabilization in our business.”
The company hopes the rebrand of the NoMad and investment from Realty Income can stimulate its venue on the Strip.
