LAS VEGAS – Owner of Cosmopolitan of Las Vegas, New York-based private equity firm Blackstone, sells 3,000-room Las Vegas Strip hotel in $ 5.65 billion partnership deal which plans to enter into a contract with casino giant MGM Resorts International to operate the property.
The new owners – the Cherng Family Trust, run by Panda Express billionaires Andrew and Peggy Cherng; the real estate investment company Stonepeak Partners; and a Blackstone real estate fund, Real Estate Income Trust Inc. – will pay more than $ 4 billion to acquire the property, Blackstone said Monday. MGM Resorts will pay $ 1.6 billion to take over the hotel’s operations.
Blackstone said he has agreements with the unions for about 3,000 employees to keep their jobs.
The transaction requires regulatory approval and is expected to close in the first half of 2022.
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The Cosmopolitan includes a casino, Marquee nightclub, several restaurants, and a fourth-floor pool overlooking Las Vegas Boulevard. It opened in 2010 at a cost of around $ 4 billion and sits between MGM Resorts’ Bellagio and the City Center project which includes the Aria Resort & Casino and the Vdara Hotel & Spa.
Blackstone bought it in 2014 from Deutsche Bank for around $ 1.7 billion and said on Monday it had invested some $ 500 million in renovations.
The property, along with all other Nevada casinos, was closed due to the coronavirus pandemic from mid-March to early June 2020. But Blackstone said the Cosmopolitan’s performance in the second quarter of 2021 exceeded levels of before COVID.
MGM Resorts, a major presence on the Strip, will operate the resort. He already owns 13 properties on Las Vegas Boulevard, including the MGM Grand, Mandalay Bay and Delano Las Vegas and New York-New York, as well as the T-Mobile Arena and the Park Retail Promenade.
MGM Resorts executives called the Cosmopolitan well suited to the company’s other properties and said the deal is expected to spur the hotel’s growth.
This article originally appeared on USA TODAY: The Cosmopolitan of Las Vegas is for sale, operated by MGM Resorts