Blackstone Sells Cosmopolitan Operations to MGM Resorts

it will not be a fast integration as MGM wants to go in and see how things operate first, before making any drastic changes, and all this won't happen until after the deal is finalized and approved

 

I just seeded Cosmo and have been getting 4 day fountain view offers with FP already.

Sounds like I need a December Trip to take advantage before it all goes poof.

 

I wonder what's going to happen to the Marriott partnership - I assume it goes poof, given the MLife-Hyatt partnership. With this deal, Marriott no longer has a footprint on the Strip (and is the only hotel group of the big three, Hyatt/Hilton/Marriott not to have one).

I'm a Marriott Titanium and have been getting perks that way (separate check-in, mostly), so I'm going to need to reevaluate whether I stay at Cosmo once it becomes an MGM property. Sigh.

 

I am glad MGM buys it.
Look forward to staying there and eating at their restaurants 2022.

 

Marriott is opening up a JW Marriott at the old Fontainebleau in 2023. Plus there's still the Grand Chateau and Westin.

 

Absolutely agree.
He gets big bonus from Blackstone.

 

It’ll take time for the sale to close and programs to integrate but they can start the matching like TODAY.

MATCH MATCH MATCH

But seriously no one else had $1.625 billion to operate it? Seems doable but the problem is it doesn’t seem profitable even if it’s packed with people all the time if you don’t count the real estate. (People disagreed with me on this.) But that means you have to have $5B+ to sit on a property until you can flip it for profit. No casino wants to do that unless it’s much cheaper (at $1.62B) and part of a larger portfolio of casino resorts. They need to be able to leverage a larger pool of bettors across all properties to have the whole corporation be profitable along with the other ways to make money like entertainment, food, etc.

 

We're losing sight of the most important part of all this...What about the great cocktails...DON'T screw up the COCKTAILS!!!

 

So no Bubba Gump but they do get a Panda Express. If you’ve ever eaten at a Panda Express, this is your fault.

 

Glad it isn't CET, but decreased competition is never good.

 

Yeah, Missouri wouldn't allow this deal to happen without another sale. But I'm sure Nevada will be okay with it.

 

This is my sentiment exactly.

Sure, now there's decreased competition, but Cosmo was probably never going to be a big player anyway.

 

Ugh this sucks.... but as long as they don't gut the building or remove the eateries (which I'm sure are still on leases for X amount of time), then it'll be okay....maybe. Ugh.

Plus their marketing team and social media team rock! Really hope nothing gets too crazy.

 

I don't agree at all with this. They will relentlessly centralize some items immediately like accounts payable and crush the corporate overhead. You don't announce that you're paying "8 times EBITDA after cost efficiencies are achieved" because you want to wait and see what's working. PGP is coming there.

 

They're paying $1.6 B AND $200 M a year of rent to the REIT operator plus some ongoing capex. It's not a $1.6 B deal. There's a reason the REIT is paying another $5.6 B.

You can count on one hand the number of operators who could probably swing this deal.

And the matching thing doesn't make sense given the antitrust requirement to operate as independent companies until closing. It will not happen. It never happens in casino deals for a reason.

 

It's a huge, huge fall from Cosmo to the Westin, Marriott Grand Chateau, or up at the vaporware property.

 

Ugh, this is terrible. Cosmo has the best VP of any of the high end properties, and thus the only high end property where I can get good status and comps. I stay a few days there on every trip and love it. Now the VP tables and the players club are likely to be ruined.

 

I’d assume the PGP beverage dispensers will be there as soon as the ink is dry.

 

You mean ORIGINAL CHICKEN TENDER

 

If this hasn't been posted - another article with an anticipated date of next year for deal close.
https://www.google.com/amp/s/vegas.eater.com/platform/amp/2021/9/27/22696803/blackstone-group-sells-cosmopolitan-mgm-resorts-1-625-billion