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Blackstone Sells Cosmopolitan Operations to MGM Resorts

Discussion in 'Casino Industry & Development' started by aspenq, Sep 27, 2021.

  1. aspenq

    aspenq Low-Roller

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    Blackstone Selling Vegas Casino, Firm’s Most Profitable Property Deal - WSJ
     
    Last edited by a moderator: Sep 27, 2021
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  2. Bo333

    Bo333 VIP Whale

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    MGM Resorts International (MGM) announced that the company has entered into a definitive agreement with Blackstone (BX) to acquire the operations of The Cosmopolitan of Las Vegas for cash consideration of $1.625B, subject to customary working capital adjustments. The purchase price represents a multiple of approximately eight times adjusted EBITDA, inclusive of expected operational synergies and identified revenue growth opportunities. Following the close of the transaction, MGM Resorts will enter into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust, which will acquire The Cosmopolitan's real estate assets. MGM Resorts will pay an initial annual rent of $200M, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter. The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.
     
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  3. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Interesting. On one hand, I thought MGM was using its newfound monies for its Japan development. On the other, Cosmo fits well into the CityCenter footprint
     
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  4. Chuck2009x

    Chuck2009x VIP Whale

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    Argh.
     
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  5. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    I bet they already have architects working on a better walkway into Cosmo from Vdara.
     
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  6. Chuck2009x

    Chuck2009x VIP Whale

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    From the existing walkway to Bellagio that runs underneath the tram station.
    upload_2021-9-27_8-37-9.png
     
    Last edited: Sep 27, 2021
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  7. bubbakitty

    bubbakitty Doing retirement again and happily so....

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    Can someone fill in the blank. This transaction will result in ……………….
    Thanks.
    (i.e., what doors does it close and which does it open ?)
     
    Tirement party over again…..poor thing.
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  8. Astribling

    Astribling Alice In Casinoland

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    Oh I'm not at all sure I like this. They better not screw up my favorite property. :bang:
     
    Vegas in December, Yes Please! Hotel TBD
    • Agree Agree x 16
  9. buckeyestud

    buckeyestud Low-Roller

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  10. ams722

    ams722 Side Bet Shunner

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    I know a lot of people will be upset about this, but as an MLife player my reaction is:

    HELL YES!!!!
     
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  11. pressitagain

    pressitagain VIP Whale

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    Had an inkling this was going to happen….

    Now I have no choice but to look for a second (third) place to gamble.
     
    • Agree Agree x 1
  12. BlackJackLife

    BlackJackLife Already dreaming of the next trip

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    I agree…a good thing
     
    Annual December trip
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  13. Astribling

    Astribling Alice In Casinoland

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    It's going to continue to deteriorate the competition on the strip. I hope that doesn't have a negative affect.
     
    Vegas in December, Yes Please! Hotel TBD
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  14. Chuck2009x

    Chuck2009x VIP Whale

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    The reasons I don't like it (assuming they eventually convert everything to MLife players club):
    • Being an independent operator with a single property and casino, Cosmo had to overcomp. Now they won't have to.
    • Along the same lines, I imagine MGM will price a 610 SF room with a terrace higher than Cosmo did. It will probably be a tougher comp.
    • You won't be able to back-to-back offer stays
    • Cosmo tier benefits go away
    • 5% rebate on spend goes away
    • For slot players at least, Kevin Sweet and their program is very player-friendly, if he gets left in the lurch, it'll suck
    Possible pluses:
    • If you regularly stay at both, you'll only have one tier level to maintain. Who cares, tier doesn't mean much at MLife
    • If you're an MGM habitué but never stayed at Cosmo, when it comes to offers, now you'll get a foot in the door for free
    • They will get Cosmo off the rolling player year and start giving TCs for table play
     
    Last edited: Sep 27, 2021
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  15. Marky147

    Marky147 VIP Whale

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    [​IMG]
     
    Christmas on the Terrace
    Back to Fremont
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  16. MattyVTX

    MattyVTX Tourist

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    Yes indeed! Will love to be able to give Cosmo some more play this next trip.
     
    Last edited: Sep 27, 2021
    Super Bowl 2022
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  17. carolineno

    carolineno VIP Whale

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    Oh, please don't ruin it! Fingers crossed I can get one more Identity comp stay out of them.

    The last time a Cosmopolitan sale came up for discussion I think I posted this. Please go ruin something else!!

     
    A low strip trip? Could be….
    Using up comps walkabout! Fingers crossed!
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  18. Headache 21

    Headache 21 VIP Whale

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    well well well...

    i never stay at Cosmo because i never play there enough to get even the slightest of offers. now it at least opens the door for at minimum a discounted stay, if not an outright comp.

    i don't like the decreased competition, but let's be real - at least it's not Eldorado.
     
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  19. JulianC

    JulianC Amateur

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    Looks like I timed my December Cosmo stay just right. I won't burn them on the offer I booked.

    This is exactly why I tell people to diversify their bonds and have multiple places they like in rotation for their trips. Try not to be fully loyal to just one.

    This means that the major Strip operator that is by far now the most stable with its ownership and operations is... Wynn?
     
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  20. Hyperfocal

    Hyperfocal VIP Whale

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    Kiosk check ins,

    No room renovations until 2032.

    Terraces locked without host approval.
     
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