In a blockbuster deal, the Blackstone Group announced plans to sell the swanky Cosmopolitan of Las Vegas to MGM Resorts. The largest casino company in Nevada takes over the Cosmopolitan’s resort operations for $1.625 billion, while a group of buyers including Blackstone real estate investment trust buys the land under the resort. In total, the $5.65 billion deal plans to close in the first half of 2022.
The Cosmopolitan opened between the Bellagio and Crystals in 2010 with a wide range of restaurant options ranging from David Chang’s Momofuku, José Andrés’s China Poblano, Jaleo, and é, to party havens Beauty & Essex and STK Steakhouse. A food hall with options from Hattie B’s Hot Chicken, Lardo, and more; Japanese cuisine from Zuma; and newcomer Superfrico with Italian American fare round out some of the dining highlights.
Blackstone bought the Cosmopolitan of Las Vegas in 2014 for $1.73 billion. The latest deal gives MGM Resorts a 30-year lease agreement where the gaming giant pays $200 million in rent a year with annual 2 percent increases for the first 15 years.
This isn’t the first time MGM Resorts entered a similar deal. In 2019, the company sold the Bellagio’s real estate for $4.2 billion to Blackstone and now pays $245 million a year to rent the land. Just last week, MGM Resorts bought out Dubai World’s stake in CityCenter, giving the company full ownership of Vdara and Aria. When that $2.1 billion deal closes, MGM Resorts plans to sell both resorts to Blackstone for $3.89 billion and lease back the resorts for $245 million a year.