Blackstone Inc (BX.N) said on Monday it would sell its The Cosmopolitan of Las Vegas resort and casino for $5.65 billion.
As part of the deal, MGM Resorts International (MGM.N) would buy the operations of The Cosmopolitan for $1.63 billion.
MGM would also enter into a long-term lease agreement with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust Inc, which will acquire The Cosmopolitan’s real estate assets.
Blackstone had acquired the property for about $1.7 billion in 2014 and spent $500 million on upgrades, including renovating nearly 3,000 guest rooms and adding new restaurants and bars.
It said The Cosmopolitan’s recent performance has been stronger than ever, exceeding pre-pandemic levels in the second quarter of this year.
The deal is expected to close in the first half of 2022.