Business

Blackstone to sell The Cosmopolitan resort and casino for $5.65 billion

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The ticker and trading information for Blackstone Group on the floor of the New York Stock Exchange, April 4, 2016. REUTERS/Brendan McDermid

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Sept 27 (Reuters) - 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.

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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.

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Reporting by Kannaki Deka and Praveen Paramasivam in Bengaluru; Editing by Anil D'Silva and Uttaresh.V

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