MGM Resorts Acquires Las Vegas Cosmopolitan Operations
MGM Resorts International announced today that it has reached a final agreement with Blackstone to acquire operational rights in Las Vegas Cosmopolitan in exchange for $1.625 billion in cash.
The purchase price is approximately 8 times the adjusted EBITDA, including expected operational synergies and identified revenue growth opportunities. 슬롯머신
Following the end of the deal, MGM Resorts will sign a 30-year lease with three 10-year renewal options, with Stone Peak Partners, Chern Family Trust and Blackstone Real Estate Income Trust, Inc. partnering to acquire property assets in Cosmopolitan. MGM Resorts will pay $200 million in initial annual rent, with an annual 2% increase over the first 15 years and a 2% or CPI increase (up 3%) thereafter.
"We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio," said Bill Hornbuckle, CEO of MGM Resorts. "The Cosmopolitan brand is recognized worldwide for its unique customer base, high-quality products and experiences, is in ideal harmony with our portfolio, and further develops our vision of being the world's leading gaming entertainment company. We look forward to welcoming The Cosmopolitan's guests and employees into the MGM Resorts family."
"With over $500 million in capital invested since 2014 to upgrade our properties, Cosmopolitan will provide customers in Las Vegas with an incredible opportunity to expand its customer base," said Jonathan Halkyard, CFO of MGM Resorts. "We believe we can leverage MGM Resorts' expertise, operating platform, and other highly achievable synergies to continue to deliver best-in-class services while driving the growth of our properties."
Prior to the COVID-19 pandemic in the 12-month period since it ended February 29, 2020, Cosmopolitan generated net income of $959 million and adjusted EBITDA of $316 million. In the second quarter ended June 30, 2021, the property generated net income of $234 million and adjusted EBITDA of $92 million.
