Blackstone is once again seeking a high roller to purchase the Cosmopolitan of Las Vegas, this time soliciting offers in excess of $5 billion for the 11 year-old resort casino.
One potential suitor exploring an offer is Apollo Global Management, according to Bloomberg. MGM Resorts International is also reportedly looking to swoop in as a potential property manager.
The Cosmopolitan struggled out of the gate after Deutsche Bank AG built the property, which opened in 2010, for $3.9 billion. Blackstone bought the property in 2014 for $1.7 billion.
Its luck turned around under Blackstone, which two years ago attempted to sell the 110,000-square-foot casino for $4 billion, more than double what it paid for it in 2014.
Blackstone has invested $500 million in renovations, including converting the top four floors into 21 suites, as well as building 18 additional bars and restaurants. Prior to the pandemic, its average daily room rate of $330 was the highest on the Las Vegas strip.
Casino properties are being sold for big bucks across Las Vegas as REITs look to split costs while casino operators aim to retain management duties while shedding ownership in favor of international markets.
Last month, Vici Properties acquired MGM Growth Properties in a $17.2 billion deal. The acquisition expanded Vici Properties’ portfolio with another 15 entertainment resorts, with MGM Growth’s holdings including the Excalibur, Luxor and Mirage casinos.
Earlier in the year, Bally’s agreed to buy the operations of the Tropicana Hotel & Casino for $150 million, with the REIT Gaming & Leisure retaining property ownership and continuing to collect rent.
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[Bloomberg] — Holden Walter-Warner