- MGM Resorts International announces transaction to acquire the operations of The Cosmopolitan of Las Vegas
- MGM Resorts International enters into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas.
- Following the close of the transaction, MGM Resorts will enter into a 30-year lease agreement, with three 10-year renewal options.
MGM Resorts International today announced that the Company has entered into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas for cash consideration of $1.625 billion, subject to customary working capital adjustments.
Il-prezz tax-xiri jirrappreżenta multiplu ta' madwar tmien darbiet EBITDA aġġustat, inklużi sinerġiji operattivi mistennija u opportunitajiet identifikati ta' tkabbir tad-dħul.
Wara l-għeluq tat-tranżazzjoni, Resorts MGM 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, Inc. (“BREIT”), which will acquire The Cosmopolitan’s real estate assets. MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.
“We are proud to add Il-Kosmopolita, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said Resorts MGM CEO & President Bill Hornbuckle. “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.”
“With over $500 million of capital invested to upgrade the property since 2014, Il-Kosmopolita offers an incredible opportunity to expand our customer base and will provide greater depth of choices for our guests in Las Vegas,” said MGM Resorts CFO Jonathan Halkyard. “We believe that we can leverage MGM Resorts’ expertise, operating platform and other highly achievable synergies to continue providing best-in-class service, while driving growth for the property.”
Prior to the COVID-19 pandemic in the trailing 12 months ended February 29, 2020, The Cosmopolitan generated $959 million of net revenue and $316 million of adjusted EBITDAR. In the second quarter ended June 30, 2021, the property generated $234 million of net revenue and $92 million of adjusted EBITDAR.
X'GĦANDEK NEĦĦED MINN DAN L-ARTIKOLU:
- MGM Resorts International announces transaction to acquire the operations of The Cosmopolitan of Las VegasMGM Resorts International enters into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas.
- MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.
- 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, Inc.
