In October 2013, members of Las Vegas-based Culinary Workers Union Local 226 were arrested due to civil disobedience in front of The Cosmopolitan. More than a year later, the venue has its new owners and things seem to be quite different.
The 2,995-room property that also offers casino, luxurious restaurants, and bars was sold to Blackstone Real Estate Partners VII. The real estate developer paid the amount of $1.73 billion for its acquisition. Immediately after the deal was inked on December 19, Culinary Local 226 officials released a statement in which they applauded the new management team’s decision to keep the employees on their places.
Since The Cosmopolitan opened doors in 2010, the Culinary wanted to sign contracts with the employees that were working at the non-gaming facilities of the property. However, Deutsche Bank AG, its former owner, intended to sell the resort and did not want for any union agreement to somehow hamper a potential deal.
Due to this, several thousand members of the union blocked the entrances of the property and caused havoc there. Now, when The Cosmopolitan has its new owner, the Culinary seems to be seeking reconciliation.
Geoconda Arguello Kline, Secretary-Treasurer for the Culinary, said they are really happy with the fact that workers from The Cosmopolitan were allowed to be represented by the union and were not forced to leave and thus, lose their health insurances.
Developer Blackstone Real Estate Partners VII is a subsidiary of Blackstone Group. The company is known to have been working with Hilton Worldwide for quite some time. The popular hotel chain has major contracts with labor union UNITE HERE, parent organization to the Culinary Workers Union Local 226.
Jonathan Gray, currently a Global Head of Real Estate of Blackstone, said in a special statement that The Cosmopolitan’s employees will keep on providing its customers with excellent gaming and non-gaming experience.
The management team of the resort shared in another statement that they are currently in a process of negotiating with the Culinary Union and that they believe a reasonable agreement will be reached.
Even before Blackstone acquired The Cosmopolitan, the company stated that Bill McBeath would be appointed as its new CEO. Mr. McBeath replaced the resort’s original chief executive John Unwin. He shared that he was really happy to join the managing team of the hotel and casino venue.
Employees at The Cosmopolitan shared that they have been working really hard so as to make the property one of the most desirable destinations on the Las Vegas Strip.
The hotel and casino venue features a large casino, two multistory towers and various restaurants, bars, and nightclubs among which are The Chelsea and the Chandelier Bar, the property’s centerpiece.
