The Cosmopolitan Hotel in Las Vegas is now officially an MGM property.
The company behind the successful BetMGM Casino as well as the BetMGM Sportsbook concluded the deal, closing the $1.625 billion purchase of the property.
MGM Resorts International and Blackstone agreed to the deal in September 2021. Regulators had to approve the agreement before it became official.
"This is a big moment for our company and for the Las Vegas Strip,” MGM Resorts CEO and President Bill Hornbuckle said in a news release. “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 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."
The release said that the Cosmopolitan, on S Las Vegas Boulevard, generated $1.1 billion in net revenue over the 12-month period ending March 31.
The hotel and resort complex has more than 3,000 rooms and suites, a 110,000-square-foot casino, a 3,200-seat theater among other entertainment venues, plus retail and meeting spaces.
The Cosmopolitan’s website also lists more than two dozen restaurants and bars on the premises.
According to an FAQ on the MGM Resorts website, the BetMGM Sportsbook will launch at the Cosmopolitan in the second half of 2022. The facility currently uses William Hill.
MGM has a 30-year lease agreement and will pay an initial annual rent of $200 million and escalating at least 2% annually thereafter, the release said.
MGM has been very active in the gambling industry and in other sectors as of late.
Earlier this month, MGM Resorts announced that it made a public offer to buy Swedish real money online gaming company LeoVegas in a deal that is expected to close this September.
And in February, the company announced that it was renaming its MLife Rewards program to MGM Rewards as part of a revamp that includes more enticements for non-gamblers as well as improved integration for online casino players.
The agreement to officially transfer Cosmopolitan ownership also comes at a time when Las Vegas is recovering from shutdowns related to COVID-19. Events and conventions have been returning to the city – with hotel room rates rising along with demand – and the city continues to make strides as a sports destination, highlighted by Vegas hosting the NFL Draft last month as well as being the still fairly new home of the NFL’s Raiders and NHL’s Golden Knights.