If you’ve ever made your way to the Las Vegas strip, there’s a great chance you’ve been to the Cosmopolitan Casino and Hotel. It’s one of the more popular locations for people to check out, as it’s loaded with shops, food, shows and of course the amazing casino, which offers so many different games. Now, the Cosmopolitan casino and hotel has been sold in Vegas for more than $5 billion.
That’s not a mistake here folks, as Blackstone Inc. has indeed reached an agreement to sell the popular venue for a total of $5.65 billion. That’s of course a massive chunk of money, but it makes sense. Vegas casinos are not cheap and due to the Cosmopolitan’s popularity, Blackstone Inc. surely wasn’t going to settle for anything less than top dollar to sell it. This is of course big news for investors as well here.
About seven years ago, Blackstone Inc. purchased the Cosmopolitan for around $1.8 billion. They then spent around $500 million on upgrades according to an article written by the Wall Street Journal. Now, with them turning around and selling the casino and hotel for well over $5 billion, this is a massive profit for the company and those who decided to invest in things as well. It’s really a win-win for everyone.
While there were worries about the negative impact of the Coronavirus pandemic for growth and revenue for the Cosmopolitan in Las Vegas, things have really bounced back this year. Millions and millions made their way to Las Vegas over the summer, with the Cosmopolitan of course being a place where so many decided to stay at. With numbers continuing to grow, more and more money is making its way over.
Blackstone has reached an agreement to sell the Cosmopolitan casino and hotel.
It told investors in a letter that it's the firm's most profitable sale of a single asset ever.
Acquired for $1.8 billion
Sold for $5.7 billion
Including cash flow it 10x its equity investment. pic.twitter.com/1HlhOekRNg
— Morning Brew ☕️ (@MorningBrew) September 27, 2021
Return of NFL season has only made things more popular in Las Vegas
As you might have been able to guess, the return of NFL season has only made things more popular in Las Vegas for football fans. Each summer and fall, so many people go to Vegas to check out the sportsbooks and place bets. What’s made things even more interesting for people in Nevada is that the Las Vegas Raiders are in action and Derek Carr has the team looking nothing short of sensational.
In Week 1, Vegas opened with a thrilling overtime win over Lamar Jackson and the Baltimore Ravens. Now, three weeks into the NFL season, the Raiders are a perfect 3-0 and they’re looking like serious threats to potentially win the AFC West over the Kansas City Chiefs. The Chiefs have had some strange struggles, as they’re 1-2. Kansas City opened the season with a win over Cleveland, but have lost to Baltimore and LA.
With things opening back up in Las Vegas too, this is only bringing in more and more excitement. Blackstone Inc. fully understood this, which is why they knew the value the Cosmopolitan Casino and Hotel brings to folks. That’s why as insane as it might sound for it to be sold for $5.65 billion, this really makes a ton of sense from a financial standpoint. Think of the insane revenue the hotel and casino brings.
With Las Vegas slowly but surely getting back into the old mix of things too, there’s only going to be more great news from a money standpoint on the way. With the sale too, Blackstone Inc. revealed to all of its investors in a note that this sale is the company’s most profitable transaction of a single asset in the history of the company. This only has to make folks even more jacked up about investing.
Per @WSJ –
Blackstone telling investors it is selling @Cosmopolitan_LV for $5.65 billion; operations being sold to MGM Resorts International and a partnership including Blackstone REIT is buying the landhttps://t.co/rDSsUByCeT
— Howard Stutz (@howardstutz) September 27, 2021
This isn’t the first monster sale of a Vegas casino this year
Believe it or not, this isn’t the first monster sale of a Vegas casino this year. Not too long ago Las Vegas Sands Corp. sold Vegas properties to Apollo Global management for about $6 billion. Don’t forget that the Resorts World venue, valued at more than $4 billion, also opened up this year too. Despite the pandemic concerns, there’s been plenty of movement for Las Vegas real estate. It’s been great to see.
“Vegas has had a strong recovery coming out of the pandemic and solidified itself as a diversified entertainment destination,” Tyler Henritze, Blackstone’s head of acquisitions for the Americas, told the Wall Street Journal when asked about all the positive movement, including the sale of the Cosmopolitan Casino and Hotel.
Despite Blackstone Inc. selling the Cosmopolitan, they’ve still got quite the pulse in Las Vegas with other previous investments. With all of the changes on the strip, it’s only going to make things even more interesting for the markets down the road too. Once this pandemic really does go away 100 percent and there are no restrictions, you know that financial strength is going to skyrocket across the USA.
This is of course going to be the case for Las Vegas. When the strip was shut down, casinos lost countless money, as did the other resorts and popular attractions. It put a dent in the city that is still being felt. However, now that the action is back and people are flying to Vegas with so much consistency, there’s a light at the end of the tunnel. More positive news is expected. It’s so incredibly great to see for everyone.