MGM Resorts International today announced it has completed its transaction with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas for cash consideration of $1.625 billion.
In the trailing 12 months ended March 31, 2022, The Cosmopolitan generated $1.1 billion of net revenue and $416 million of adjusted EBITDAR (calculated as EBITDA before rent, impairment loss and pre-opening expenses, and after corporate expenses.)
The Cosmopolitan opened in December 2010 and underwent significant renovation following Blackstone's acquisition of the property in 2014. The property features:
- 3,033 rooms and suites that were renovated in December of 2018,
- a 110,000 square-foot casino,
- 26 food and beverage offerings,
- a 3,200-seat theater (The Chelsea),
- Marquee nightclub and dayclub,
- 243,000 square feet of meeting space,
- 36,000 square feet of leased retail space, and
- a 43,000 square foot spa and fitness facility.
MGM Resorts entered into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc. ("BREIT"), which acquired The Cosmopolitan's real estate assets for around $4.025 billion. MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.