Blackstone to sell The Cosmopolitan Las Vegas for USD 5.65 billion
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Investment management company Blackstone has agreed to sell luxury hotel The Cosmopolitan of Las Vegas to Stonepeak Partners for USD 5.65 billion.
The transaction is one of the biggest single-asset property purchases to date.
Under the terms of the acquisition agreement, MGM Resorts International plans to purchase The Cosmopolitan’s operating assets as well as sign a long-term net lease agreement between Blackstone Real Estate Income Trust, Stonepeak Partners and Cherng Family Trust.
“Stonepeak, in partnership with the Cherng Family Trust, believes this transaction represents a fantastic opportunity to invest in the underlying real estate of The Cosmopolitan of Las Vegas, a solid asset with an irreplaceable location, durable cash flows and the potential for additional upside,” said Phill Solomond, head of real estate at Stonepeak, in a statement.
The transaction is expected to close early next year, subject to receiving various regulatory approvals and meeting customary closing conditions.
Latham & Watkins acted as legal counsel to Cherng Family Trust and Stonepeak on the transaction, with Simpson Thacher & Bartlett acting for Blackstone Real Estate Partners, the seller.
Blackstone initially acquired The Cosmopolitan in 2014. Since then, it has transformed the resort into a more prominent resort on the Las Vegas Strip. The resort has undergone various operational changes under Blackstone’s ownership, as well as receiving an investment of USD 500 million for the resort’s renovation.
The Cosmopolitan has enjoyed strong financial performance of late, exceeding pre-Covid-19 levels in the second quarter of this year.
Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate, said in a statement: “This transaction underscores Blackstone’s ability to acquire and transform large, complex assets. As owners of The Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip.”
Henritze added: “The management team and employees at The Cosmopolitan, led by CEO Bill McBeath, flawlessly executed an ambitious business plan, including navigating a challenging period for the entire industry, to position the property for such a high level of success.”
United States gaming company Twin River Worldwide Holdings agreed to purchase three casinos, one from Caesars Entertainment Corporation and two from Eldorado Resorts, in April last year.
