Blackstone has agreed a deal to sell The Cosmopolitan of Las Vegas for $5.65 billion.
The transaction represents a spectacular return for the investment giant, having bought the property for only $1.7 billion in 2014.
The deal splits the property from the operational side of the business, with MGM Resorts International acquiring the operations and a partnership between the Cherng Family Trust, Stonepeak Partners and the Blackstone Real Estate Income Trust, Inc. (“BREIT”), buying the real estate assets.
Since acquiring The Cosmopolitan in 2014, Blackstone has invested over $500 million into the property to renovate nearly 3,000 guest rooms, build 67 new rooms and suites, enhance the food and beverage offerings and y improve the gaming amenities and common areas.
“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,” Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate, said.
“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.”
The transaction is expected to close in early 2022, subject to regulatory approvals and other closing conditions.