The MGM Resorts International announced on Tuesday that they have completed the transaction with Blackstone to own the operations of The Cosmopolitan of Las Vegas for $1.625 billion. The property has a 110,000 square-foot casino, with high-end gaming areas for VIP guests.
A news release from MGM indicates the company will pay $200 million in rent the first year, and that will go up 2% each year for the first 15 years of a 30-year lease. The lease will be 2-3% higher each year on the back end of the lease."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," said MGM Resorts CEO and President Bill Hornbuckle. "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."
In the trailing 12 months ended March 31, 2022, The Cosmopolitan generated $1.1 billion of net revenue and $416 million of adjusted EBITDAR.1
The Cosmopolitan opened in December 2010 and underwent significant capital improvements following Blackstone's acquisition of the property in 2014.