The transformation of Las Vegas post-COVID-19 continues.
On Monday, MGM Resorts announced that it has acquired the operations for The Cosmopolitan of Las Vegas for $1.625 billion.
MGM will now enter into a 30-year lease agreement, with three 1-year renewal options, through a partnership with Stonepeak Partners, Cherng Family Trust, and Blackstone Real Estate Income Trust, which will acquire the actual Cosmopolitan real estate. MGM will pay those groups annual rent of $200 million on the property.
The deal adds yet another iconic Las Vegas property to the MGM Resorts portfolio. The resort is just over ten years old (built-in 2010) and already has been upgraded to the tune of $500 million since 2014. Its features include over 3,000 guest rooms and suites, all renovated in December 2018, a 110,00 square-foot-casino, 26 different eateries, The Chelsea Theatre, Marquee nightclub, and more.
"We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio," said MGM Resorts CEO & President Bill Hornbuckle.
"The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world's premier gaming entertainment company. We look forward to welcoming The Cosmopolitan's guests and employees to the MGM Resorts family.
With the move, The Cosmopolitan will now join Bellagio, MGM Grand, ARIA, Mandalay Bay, The Mirage, New York-New York, Park MGM, and more operating on the Vegas strip under the MGM banner.