MGM buys the Cosmopolitan Casino in Las Vegas

It's completely normal for Las Vegas , when new resorts are created or existing casinos get a new owner. However, the new case is more than interesting, since it concerns world-renowned casinos and gambling groups. In addition, enormously high amounts come into play, which also cause excitement: Cosmopolitan goes to MGM.

Las Vegas – das Cosmopolitan auf der rechten Seite.

MGM paid 1.65 billion dollars for the Cosmopolitan, thereby expanding the 31 resorts that it has in the USA and Macau owns.(©favoritesunfl/Pixabay)

Cosmopolitan Resort is sold in sections

The investor of Cosmopolitan has publicly announced that the entire resort is being sold. Thepurchase price was set at four billion dollars. No company can raise this sum alone, which is why the resort is going to a group of investors. However, there is another reason why there are several new investors: The Cosmopolitan is split up and the departments go to different groups.

MGM has been awarded the casino at the Cosmopolitan and intends to invest$1.65 billion for the purchase price . In addition, there are high sums for the rental agreement: at least 200 million dollars per year are incurred for this – the rent is increased after 15 years. This is a lucrative lease as it has been fixed for 30 years. In addition, after this period there is a chance that the contract will be extended by 10 years. Overall, MGM has secured the option to extend the contract three times.

MGM believes the investment is worthwhile asCosmopolitan is well known and has an exclusive customer base. If this is preserved, the casino in the Cosmopolitan could generate a high profit per year.

Cosmopolitan is labeled a luxury resort by MGM

The joy of high annual profits is no accident. The Cosmopolitan had$959 million in revenue after taxes. Even after the corona pandemic, the Cosmopolitan showed, thanks to its numbers, that it is very popular: the casino was able to generate 234 million in the second quarter of 2021. Anyone who observes the strict hygiene measures in place appreciates the value even more.

MGM is not unknown either, which is why the CEO of this corporation hopes to be able to merge both casinos into one big successful gambling place. One reason is the high level of investment that Blackstone has made in recent years:500 million US dollars flowed into the modernization of the casino resort. For this reason, the Cosmopolitan inspires with numerous highlights:

  • TheCasino area covers 110,000 square meters with a special area for VIP guests
  • 3000 rooms and suites with a view over the Las Vegas Strip
  • Spa and fitness area were settled on an area of ​​40,000 square meters

These highlights serve as a magnet not only for casino fans. Many business people check in regularly and use the also very extensive congress center. Of course, the Cosmopolitan offers far more entertainment value as it also has a shopping center and many bars, restaurants and theatres.

Cosmopolitan has already survived a few crises

As successful as Cosmopolitan has been lately, the resort has faced many difficulties in the past. This resort only openedin 2010 and is one of the most expensive casino resorts in recent times fag. A rescue came from Deutsche Bank, which sold the building in 2014 to the current investor: Blackstone. This company enjoyed a low price as Deutsche Bank took a loss on the sale.

Since that time, the above sum has been invested to createa luxurious resort. The investment was definitely worth it, as the business figures prove. Because of this, MGM is ready to take over the casino.

MGM offers casinos and sports betting

MGM is also not an unknown gambling provider. Many gambling fans playing inLas Vegas are familiar with the Bellagio, whose name does not immediately give away that it belongs to MGM. The situation is different with the MGM Grand and Park MGM resorts. In these resorts, the owner offers numerous and popular casino games. All this leads to a particularly high popularity, which was confirmed by FORTUNE magazine. This magazine recognized MGM as one of the world's most admired companies.

Apart from the 31 resorts that MGM owns in the USA and Macau, the gaming group also offers online casinos. This also gives players the chance to bet on all major sporting events. But it won't stop there, becauseMGM has applied for one of the three resorts in Japan. In addition, it has become known in recent weeks that MGM is interested in Entain PLC. To take over this successful gambling operator, MGM offered $11 billion. Entain PLC has acknowledged receipt of the offer but has not yet commented on it.

It seems that MGM is on an expansion course and has taken a first step with the purchase of Cosmopolitan.

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The article was published on October 6th, 2021 in the magazine by cpaws-ov.org under the keywords, ,,, ,, , published.
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