The Cosmopolitan of Las Vegas

History

2021: Cherng Family Trust bought The Cosmopolitan of Las Vegas for $5.65 billion

On September 27, 2021, investment giant Blackstone announced the sale of The Cosmopolitan of Las Vegas casino hotel for $5.65 billion to the family foundation Cherng Family Trust, which was founded by billionaires Andrew and Peggy Chering. The deal is expected to close in the first half of 2022.

After closing the deal, MGM Resort will enter into a 30-year lease agreement with three 10-year extension options. The casino operator will pay $200 million in annual rent, which will increase annually by 2% until 2036.

Cherng Family Trust acquired The Cosmopolitan of Las Vegas for $5.65 billion

Blackstone first bought The Cosmopolitan from Deutsche Bank for $1.7 billion in 2014. The company told its investors in a private letter that this transaction marked the most profitable sale of one real estate asset in the history of the company. Profit from the sale will be more than $4.1 billion.

MGM Resorts CEO and President Bill Hornbuckle, said in a statement that The Cosmopolitan fits perfectly into the company's portfolio, which includes 31 hotels and casinos in the U.S., Macau and Japan such as Mandalay Bay, Bellagio and MGM Grand.

Since the purchase, Blackstone has invested $500 million in the reconstruction of The Cosmopolitan, in which 3 thousand rooms. The Cosmopolitan also has a casino with an area of ​ ​ 10 thousand square meters. m., 26 restaurants and bars, a theater with 3.2 thousand seats, a nightclub. The facility is located on the Las Vegas Strip next to other facilities managed by MGM, including Bellagio, Aria, Park MGM and MGM Grand. Blackstone said that since the end of 2020, the performance of The Cosmopolitan has been as high as ever, exceeding the pre-andemic level in the second quarter of 2021.

In August 2021, the analytical company Macquarie Research called the forecast for Las Vegas optimistic, expecting the city to recover to pre-andemic levels by mid-2022.^[1]

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