MGM Resorts has added Las Vegas’ The Cosmopolitan to its US gaming network after finalising its $1.625bn acquisition of the property’s operations from Blackstone.
Following the close of the transaction, the casino and entertainment operator will enter into a 30-year lease agreement with three 10-year renewal options.
This will see MGM pay an initial annual rent of $200m, escalating annually at two per cent for the first 15 years and the greater of two per cent or the CPI increase (capped at three per cent) thereafter.
In the 12 months ending March 31, 2022, The Cosmopolitan generated $1.1bn of net revenue and $416m of adjusted EBITDAR.
“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,” stated Bill Hornbuckle, MGM Resorts CEO and President.
“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.”
The Cosmopolitan opened in December 2010 and benefitted from capital improvements following Blackstone’s acquisition of the property in 2014.
The property features:3,033 rooms and suites; a 110,000 square-foot casino, with high-end gaming areas for VIP guests, 26 food and beverage offerings; a 3,200-seat theatre; nightclub and dayclub; 243,000 square feet of meeting space; 36,000 square feet of leased retail space, and 43,000 square foot spa and fitness facility.