Blackstone reportedly exploring sale of The Cosmopolitan just several months after denying it was looking to divest the luxury Strip casino resort
Private equity firm The Blackstone Group is assessing strategic options for The Cosmopolitan of Las Vegas, including putting the glitzy resort up for sale, the Wall Street Journal reported Wednesday citing unnamed sources familiar with the matter.
Reports about the company possibly exploring a sale of the property first emerged last year. Back then, popular Las Vegas blog Vital Vegas reported that Hard Rock International had engaged in due diligence to acquire the Strip resort.
In an emailed statement to Casino News Daily, a representative for the casino resort said that the “rumors regarding the sale of The Cosmopolitan are false” and that Blackstone had not discussed the sale of the property at the time.
Times might be changing, according to a person who asked not to be identified due to the private nature of the matter. It emerged Wednesday that Blackstone is working with Deutsche Bank and PJT Partners Inc. to seek potential buyers of the luxury resort.
The Cosmopolitan opened doors in December 2010 after facing multiple financial complications mostly caused by the 2008 financial crisis. The luxury $3.9 billion resort includes two 184-meter towers with just over 3,000 hotel rooms, a casino, multiple dining options, retail space, entertainment facilities, and meeting and convention space, among other amenities.
Blackstone acquired the property from Deutsche Bank in May 2014 for $1.73 billion. It is believed that the private equity firm could trouser as much as $4 billion from the sale of The Cosmopolitan.
Previous Sale Reports
As mentioned earlier, this is not the first time Blackstone is reported to be seeking buyers for the Strip hotel and casino resort. Hard Rock, the owner of a multi-property coffee shop chain as well as a number of hotel and casino resorts, was believed to be close to buying The Cosmopolitan last year.
Las Vegas gaming and hospitality giant MGM Resorts International was, too, once reported to be showing interest in adding the luxury resort to its portfolio of properties. The Cosmopolitan is located on an 8.7-acre site between the Bellagio and the Las Vegas CityCenter. Both properties are owned by MGM.
The Cosmopolitan is not the only Las Vegas Strip fixture that is seeking buyers. Earlier this week, Caesars Entertainment Corp. announced that it has set up a special transaction committee that has been tasked with exploring options for the best path forward for the company, including a potential sale.
Caesars has reportedly been approached by Eldorado Resorts and Tilman Fertitta’s Golden Nugget casino chain to sell itself. The Las Vegas-based giant which operates more than 50 properties across four continents has tapped PJT Partners to help it evaluate takeover interest.
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