The Blackstone Group Buys Cosmopolitan Resort in $1.73 Billion Deal
Deutsche Bank has agreed to sell the Cosmopolitan resort in Las Vegas to The Blackstone Group for $1.73 billion. The deal marks the end of Deutsche Bank’s venture into the casino market which began when the casino’s developer was foreclosed by the bank in January 2008.The bank has always been willing to sell the casino and the purchase in the first important gambling investment by The Blackstone Group which already owns office properties, residential complexes and shopping centers.
Since opening in 2010 the Cosmopolitan hotel has focused on non-gambling revenue. The hotel features 2,995 rooms, salon, a spa and 14 restaurants. It has a Marquee Night Club & Day Club which has ties with Wynn Resorts’ XS and is one of the top-grossing night clubs in the US, in 2012 the club brought in revenue of over $80 million.
Tyler Henritze, a Blackstone senior managing director, said in a statement, “We are excited to join with the Cosmopolitan and work with its employees and management in the next phase of its evolution. As a significant investor in the hospitality sector, Blackstone recognizes the value and potential in the Cosmopolitan and Las Vegas and looks forward to working to build on the success to date.”