Cosmopolitan Las Vegas is Now Officially Part of MGM Resorts

MGM’s 1.6 billion dollars deal with Blackstone has finally ended. Now, MGM Resorts International has complete control of Cosmopolitan Las Vegas.

The deal concluded within the expected date, as MGM previously stated, to close in Q2. The deal does not allow MGM to own any real estate named under Cosmopolitan. The 4 billion dollar worth of real estate was formed by the group of Stonepeak Partners, Blackstone Real Estate Income Trust, and Cherng Family Trust.

Bill Hornbuckle, the president and CEO of MGM Resorts, also talked about the development. Bill expressed delight about the deal stating it was a huge moment for MGM. As one of the most premium resorts in Vegas, Cosmopolitan has a loyal user base. Thus, MGM will add a heap of value to its portfolio with the acquisition.

The company entered a 30-year lease with the consortium. Initially, MGM will be charged 200 million dollars at an annual rate, which surges 2% every year during the initial 15 years. Afterward, the rate will increase by either 2% or whatever the CPI (Consumer Price Index) indicates. The CPI stays capped at 3%, and once the first 30-year term ends, MGM will get three 10-year renewal opportunities.

The deal allows MGM to set its foot on the Strip, where Cosmopolitan is already the biggest operator. The casino has amassed a whopping 416 million dollars EBITDAR on the net income of 1.1 billion dollars in the past 12 months.

Its margins are massive compared to its competitors. Thus, the acquisition will rejuvenate MGM’s cash flow through the roof. With 3,033 rooms and a 110,000 square feet gaming area, Cosmopolitan attracts a major crowd. Given the funds Blackstone received and the opportunities MGM unlocked, the deal ended as a win-win situation for both ventures.

Tina Mattson is a sports journalist and working as a freelance news writer for She loves to play casino games in her free time, and she has extensive knowledge about most of the online casino games.

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