Blackstone Sells The Cosmopolitan for $5.7 Billion

Issue 90

After several years of hardship and loss, Blackstone has finally agreed to sell the Cosmopolitan in Las Vegas for $5.7 billion to MGM resorts.

The Cosmopolitan has sustained significant losses with resorts stating an average loss of $100 million each year when it first opened in 2010. The Covid-19 pandemic made matters worse for Las Vegas which relies heavily on tourism. Since then, however, the resort has done significantly better with over 3 million people visiting the city this year.

Blackstone chose to increase investment in the sector last year even as fears of the Covid pandemic created worries that the industry would not revive for the foreseeable future. The investment appears to have paid off as the Cosmopolitan’s financial performance “exceeding pre-Covid levels”.

MGM will be backed by investors that include “Stonepeak Infrastructure Partners, a vehicle controlled by the family of Panda Express founder Andrew Cherng, and one of Blackstone’s own real estate funds.”

Source: Financial Times