LAS VEGAS (KLAS) — The Cosmopolitan of Las Vegas is now officially part of MGM Resorts International, according to a Tuesday announcement.
Officials at MGM said the deal is done, bringing the Cosmo into MGM’s portfolio. Blackstone sold the resort operations to MGM for $1.625 billion.
The transaction continues MGM’s trend of selling the property that resorts sit on and continuing to run the hotel-casino operations with lease deals.
A news release from MGM indicates the company will pay $200 million in rent the first year, and that will go up 2% each year for the first 15 years of a 30-year lease. The lease will be 2-3% higher each year on the back end of the lease.
“This is a big moment for our company and for the Las Vegas Strip,” MGM Resorts CEO and President Bill Hornbuckle said. “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.”
The Cosmopolitan opened in December 2010 and was acquired by Blackstone in 2014.
Hornbuckle also welcomed the resort’s employees to MGM. As many as 5,000 workers at the Cosmopolitan received surprise $5,000 bonuses last week.
“We’re also thrilled to have the talented group of CoStars from The Cosmopolitan joining the MGM Resorts family,” Hornbuckle said.
In the announcement of the deal’s closing, MGM said the Cosmopolitan has generated $1.1 billion in net revenue over the past 12 months.