LAS
VEGAS, May 17, 2022 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) ("MGM Resorts" or the "company") today
announced the closing of its transaction with Blackstone to acquire
the operations of The Cosmopolitan of Las
Vegas (the "property" or "The Cosmopolitan") for cash
consideration of $1.625 billion. With
the closing of the transaction, The Cosmopolitan of Las Vegas officially joins MGM Resorts' roster
of iconic brands along the Las Vegas Strip.
"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.
"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."
In the trailing 12 months ended March 31,
2022, The Cosmopolitan generated $1.1
billion of net revenue and $416
million of adjusted EBITDAR.1
The Cosmopolitan, a leading contemporary luxury resort and
casino, opened in December 2010 and
underwent significant capital improvements following Blackstone's
acquisition of the property in 2014. The property features:
- 3,033 rooms and suites that were renovated in December of 2018,
most of which feature terraces overlooking the famed Las Vegas
Strip,
- a 110,000 square-foot casino, with high-end gaming areas for
VIP guests,
- 26 on-trend food and beverage offerings, with 19 new concepts
introduced in the last four years,
- a 3,200-seat theater (The Chelsea),
- Marquee nightclub and dayclub that hosts top DJs from around
the world,
- 243,000 square feet of centrally located meeting space,
featuring state-of-the-art technology to accommodate both large and
small groups,
- 36,000 square feet of leased retail space, and
- a 43,000 square foot spa and fitness facility.
MGM Resorts entered into a 30-year lease agreement, with three
10-year renewal options, with a partnership among Stonepeak, Cherng
Family Trust and Blackstone Real Estate Income Trust, Inc.
("BREIT"), which acquired The Cosmopolitan's real estate assets.
MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the
first 15 years and the greater of 2% or the CPI increase (capped at
3%) thereafter.
About MGM Resorts International
MGM Resorts
International (NYSE: MGM) is an S&P 500® global entertainment
company with national and international locations featuring
best-in-class hotels and casinos, state-of-the-art meetings and
conference spaces, incredible live and theatrical entertainment
experiences, and an extensive array of restaurant, nightlife and
retail offerings. MGM Resorts creates immersive, iconic experiences
through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses
33 unique hotel and gaming destinations globally, including some of
the most recognizable resort brands in the industry. The Company's
50/50 venture, BetMGM, LLC, offers U.S. sports betting and online
gaming through market-leading brands, including BetMGM and
partypoker. The Company is currently pursuing targeted expansion in
Asia through the integrated resort
opportunity in Japan. Through its
"Focused on What Matters: Embracing Humanity and Protecting the
Planet" philosophy, MGM Resorts commits to creating a more
sustainable future, while striving to make a bigger difference in
the lives of its employees, guests, and in the communities where it
operates. The global employees of MGM Resorts are proud of their
company for being recognized as one of FORTUNE® Magazine's World's
Most Admired Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram.
FORWARD-LOOKING STATEMENTS
Statements in this
release that are not historical facts are forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, and involve risks and/or
uncertainties, including those described in the Company's public
filings with the Securities and Exchange Commission.
Forward-looking statements can be identified by the use of
forward-looking terminology such as "believes," "expects," "could,"
"may," "will," "should," "seeks," "likely," "intends," "plans,"
"pro forma," "projects," "estimates" or "anticipates" or the
negative of these words and phrases or similar words or phrases
that are predictions of or indicate future events or trends and
that do not relate solely to historical matters. The Company has
based forward-looking statements on management's current
expectations and assumptions and not on historical facts. Examples
of these statements include, but are not limited to, the Company's
expectations regarding any benefits expected to be received from
the acquisition. Forward-looking statements depend on assumptions,
data or methods that may be incorrect or imprecise, and the Company
may not be able to realize them. These forward-looking statements
involve a number of risks and uncertainties. Among the important
factors that could cause actual results to differ materially from
those indicated in such forward-looking statements include risks
related to the continued impact of the COVID-19 pandemic on the
Company's business, the effects of economic conditions and market
conditions in the markets in which the Company operates and
competition with other destination travel locations throughout
the United States and the world,
the design, timing and costs of expansion projects, risks relating
to international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in the Company's Form 10-K, Form 10-Q and Form 8-K
reports (including all amendments to those reports). In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law. If the Company updates one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those other forward-looking statements.
MGM RESORTS CONTACTS:
Investment Community:
ANDREW
CHAPMAN, Director of Investor Relations
(702) 693-8711, achapman@mgmresorts.com
News Media:
BRIAN
AHERN, Executive Director of Communications
media@mgmresorts.com
1 Calculated as EBITDA before rent, impairment loss
and pre-opening expenses, and after corporate expenses.
View original
content:https://www.prnewswire.com/news-releases/mgm-resorts-international-announces-completion-of-acquisition-of-the-operations-of-the-cosmopolitan-of-las-vegas-301549520.html
SOURCE MGM Resorts International