The Blackstone Group announced Monday that it sealed a record deal with the sale of The Cosmopolitan casino and hotel for $5.65 billion.

“This transaction underscores Blackstone’s ability to acquire and transform large, complex assets. As owners of The Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip," said Tyler Henritze, the head of acquisitions Americas for Blackstone in a statement announcing the deal.

Blackstone first acquired The Cosmopolitan from Deutsch Bank in 2014 and spent $500 million to refurbish the property that included renovated guest rooms, new luxury suites, and new bars and restaurants. The firm says that it also created 3,000 new jobs and that The Cosmopolitan's performance has "exceeded pre-COVID" levels of business in the second quarter of 2021.

Under the deal, Blackstone would be selling The Cosmopolitan’s operations to MGM Resorts International under a 30-year lease agreement and the underlying real estate would be sold to a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust Inc (BREIT). According to Blackstone, the separation of The Cosmopolitan’s operations from the property’s ownership was seen as the “most optimal outcome.”

MGM Resorts CEO and President Bill Hornbuckle said it purchased the property’s operations for $1.61 billion.

"We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio," said Hornbuckle. "The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world's premier gaming entertainment company."

“With over $500 million of capital invested to upgrade the property since 2014, The Cosmopolitan offers an incredible opportunity to expand our customer base and will provide greater depth of choices for our guests in Las Vegas,” said MGM Resorts CFO, Jonathan Halkyard.

The Real Deal reports that Blackstone has been marketing the property for weeks ahead of the sale before this sale to MGM International was announced.

The sale is not expected to be closed until early 2022 after receiving regulatory approval and fulfilling other customary closing conditions.

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