MGM Resorts Acquires Las Vegas Cosmopolitan

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 in exchange for $1.625 billion in cash under the customary working capital adjustment. The purchase price represents a multiple of approximately 8-fold adjusted EBITDA, including anticipated operational synergies and confirmed revenue growth opportunities.

Following the closing of the transaction, MGM Resorts will partner with Stonepeak Partners, Cheng Family Trust and Blackstone Real Estate Income Trust Inc to sign a 30-year lease to acquire Cosmopolitan’s property. MGM Resorts will pay an initial $200 million in annual rentals, increasing to 2% annually for the first 15 years and rising more than 2% or CPI after that (upper 3%). 사설 토토사이트

“We are proud to add The Cosmopolitan, a luxury resort and casino in Las Vegas Streep, to our portfolio,” said Bill Hornbuckle, MGM Resorts CEO and President. “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality products and experiences, bringing our portfolio and ideal fit to further our vision to become the world’s leading gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and staff to the MGM Resorts family.”

“With more than $500 million in capital invested to upgrade our properties since 2014, Cosmopolitan provides an incredible opportunity to expand our customer base and will provide customers in Las Vegas with more depth of choice,” said Jonathan Halkyard, CFO of MGM Resorts. “We believe that MGM Resorts’ expertise, operational platform, and other achievable synergies can be leveraged to continue providing best-in-class services while driving the growth of our properties.”

For the 12 months prior to the COVID-19 pandemic ended February 29, 2020, Cosmopolitan generated net income of $959 million and adjusted EBITDAAR1 of $316 million. For the second quarter ended June 30, 2021, the property generated net income of $234 million and adjusted EBITDAAR1 of $92 million.

Leave a Reply

Your email address will not be published. Required fields are marked *