It’s official. MGM Resorts closed the deal to fully acquire The Cosmopolitan of Las Vegas for $1.625 billion, according to a press release from MGM Resorts International.
The closing of this deal officially makes The Cosmopolitan a branch in the MGM Resorts tree, putting another glamorous property under the arm of the company.
“This is a big moment for our company and for the Las Vegas Strip. The Cosmopolitan of Las Vegas has already established itself as one of the Strip’s premier resorts with an iconic brand, well-curated experiences and a loyal customer base. We couldn’t be more excited to bring them into our portfolio of world-class operations,” said MGM Resorts CEO and President Bill Hornbuckle.
MGM Resorts has a 30-year lease agreement with three separate 10-year renewal options, according to a press release by MGM Resorts International. MGM will also pay an initial annual rent of $200 million, which will increase at 2% for the first 15 years.
The news of this acquisition also comes at a time when many Cosmopolitan employees received $5,000 as surprise bonuses a week ago.
“We’re also thrilled to have the talented group of CoStars from The Cosmopolitan joining the MGM Resorts family. We look forward to improving upon The Cosmopolitan’s already strong results by offering their customers access to the extensive and exclusive amenities and other benefits only MGM Resorts can provide,” Hornbuckle said.
Profitable and lucrative? This deal certainly seems so. According to MGM, the Cosmo generated $1.1 billion of net revenue and $416 million of adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs.
The Cosmopolitan opened in 2010, according to USA Today. The private New York-based equity firm Blackstone bought the property in 2014 from Deutsche Bank for about $1.7 billion and invested $500 million in renovations.
The hotel and casino contains the famous Marquee nightclub, several restaurants and a swimming pool (which now shows Monday night pool-side movies).