MGM/MLife Buys Cosmopolitan in Las Vegas
Sep 27, 2021, 9:17 pm
#1
Original Poster
Join Date: Aug 2010
Location: LAX oriented World Digital Nomad
Programs: AA Exec Plat, Hyatt Globalist, MLife/Cosmo Identity Gold, Other Vegas too...
Posts: 1,317
MGM/MLife Buys Cosmopolitan in Las Vegas
So my personal favorite hotel in Las Vegas, the Cosmo, has effectively been sold to MGM. The deal will fully commence in first half of 2022, assuming all goes well.
I am personally bummed, I have my opinions on most of the major Vegas corporate / loyalty program players, but this is Hyatt forum, not Vegas. The Cosmo has treated me well.
Posting here because I'd say there's gotta be a huge chance this hotel switches from Marriott to Hyatt program as all other MLife properties are Hyatt, although Vegas has always been an odd market... you don't get many of the Globalist benefits but still often some nights and points if the room isn't fully comped. It'll be interesting to see what happens. Maybe somehow being MLife Gold, Cosmo Gold, and Hyatt Globalist will benefit me... though I doubt it.
Let the rumors commence until we hear clearer news in the coming weeks and months!
I am personally bummed, I have my opinions on most of the major Vegas corporate / loyalty program players, but this is Hyatt forum, not Vegas. The Cosmo has treated me well.
Posting here because I'd say there's gotta be a huge chance this hotel switches from Marriott to Hyatt program as all other MLife properties are Hyatt, although Vegas has always been an odd market... you don't get many of the Globalist benefits but still often some nights and points if the room isn't fully comped. It'll be interesting to see what happens. Maybe somehow being MLife Gold, Cosmo Gold, and Hyatt Globalist will benefit me... though I doubt it.
Let the rumors commence until we hear clearer news in the coming weeks and months!
Sep 27, 2021, 9:26 pm
#2
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 4,835
I think I DEFINITELY prefer them separate entities as I view MLife as pretty trashy and Cosmo to be basically the Gold Standard. Not only in its program but in its dining and everything on property.
I’ll be happy to use my MLife credits there though.
Wonder what will happen for those who’ve built up large play with both programs though…
I’ll be happy to use my MLife credits there though.
Wonder what will happen for those who’ve built up large play with both programs though…
Sep 27, 2021, 9:26 pm
#3
Join Date: Jul 2008
Location: LAS ORD
Programs: AA Pro (mostly B6) OZ♦ (flying BR/UA), BA Silver Hyatt LT, Wynn Black, Cosmo Plat, Mlife Noir
Posts: 5,992
Just to be specific, Blackstone sold the Cosmopolitan's resort operations to MGM.
It'll be interesting to see how it plays out - lots of potential ramifications to both the gambling loyalty program as well as the hotel partnership.
It'll be interesting to see how it plays out - lots of potential ramifications to both the gambling loyalty program as well as the hotel partnership.
Sep 28, 2021, 12:41 am
#4
formerly a193991
Join Date: Dec 2014
Location: Zulu Romeo Hotel
Programs: Hyatt LT Globalist; LX SEN (*A Gold), AA LTG
Posts: 4,560
Would be great if the Cosmo switches to MGM and the WoH programm.
The Cosmo was originally intended to become the Grand Hyatt Las Vegas (which I would have preferred the most obviously)
Source: https://en.wikipedia.org/wiki/Cosmopolitan_of_Las_Vegas
The Cosmo was originally intended to become the Grand Hyatt Las Vegas (which I would have preferred the most obviously)
The Cosmopolitan was the second Las Vegas hotel, after The Palazzo, to feature an underground parking garage underneath the hotel. As a result, the parking garage was built first. In December 2007, work finished on the 70-foot (21 m) hole for the parking structure, while other foundation work remained in progress. The hotel was originally planned to open and be operated by Hyatt as the Grand Hyatt Las Vegas.
Sep 28, 2021, 12:45 am
#5
Original Poster
Join Date: Aug 2010
Location: LAX oriented World Digital Nomad
Programs: AA Exec Plat, Hyatt Globalist, MLife/Cosmo Identity Gold, Other Vegas too...
Posts: 1,317
Ok, yes, technically true. They're all playing bizarre games of owning, or not owning, the buildings, and then just running or owning what is inside of them. Such a bizarre industry, but I'm here for it. MGM, please don't ruin the Cosmo.
Sep 28, 2021, 4:07 am
#6
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,166
Doing Aria in Oct but having most of my nice dinners in the Cosmo...great dining scene.
Great upgrade for Hyatt/mLife!
Great upgrade for Hyatt/mLife!
Sep 28, 2021, 4:42 am
#7
Join Date: Jan 2015
Location: Kuwait (KW)
Programs: Qatar Airways, Hyatt, Hilton, Marriott, IHG
Posts: 2,708
Sep 28, 2021, 6:07 am
#8
Join Date: Apr 2021
Location: Manhattan, Palm Beach Island, San Francisco, Boston, & Hong Kong
Programs: Lifetime United Global Services, Delta Plat, Hyatt Globalist, Marriott Ambassador, & Hilton Diamond
Posts: 3,165
Blackstone Letter to Investors
Blackstone sent a letter to its investors declaring this to be the most profitable single asset sale in the history of the firm.
Ownership of the Cosmo is being split between Stonepeak (low-tier) institutional, the Cherng family trust (family office) and Blackstone’s real estate income trust for about $4 billion.
Hotel and casino operations are being sold to MGM for $1.625 billion on a 30 year lease agreement where MGM will pay a $200 million a year in rent (increased by 2%-3% a year).
For people questioning the structure of this deal, this structure has existed for years already, even with MGM (ie the Bellagio). The Vdara and Aria will shift to this model too.
It’s notable that the Cosmo was 87% occupied from Sep 1-Sep 24 with an ADR of $448. There was also a lot of rhetoric on the future of Las Vegas/Nevada real estate. I think we can all see the soft fundamentals of that market but it really seems the big REPE funds are beginning to describe plans for a post “peak-Las Vegas” world. Interestingly enough, Apollo was rumored to be a contender in the purchase of this asset. Instead, a family office joined in a deal. Terrible signaling. LV RE has already seen a lot of sell-offs but I would not be surprised to see many more “quick” asset flips from the mega funds over the next few years.
Ownership of the Cosmo is being split between Stonepeak (low-tier) institutional, the Cherng family trust (family office) and Blackstone’s real estate income trust for about $4 billion.
Hotel and casino operations are being sold to MGM for $1.625 billion on a 30 year lease agreement where MGM will pay a $200 million a year in rent (increased by 2%-3% a year).
For people questioning the structure of this deal, this structure has existed for years already, even with MGM (ie the Bellagio). The Vdara and Aria will shift to this model too.
It’s notable that the Cosmo was 87% occupied from Sep 1-Sep 24 with an ADR of $448. There was also a lot of rhetoric on the future of Las Vegas/Nevada real estate. I think we can all see the soft fundamentals of that market but it really seems the big REPE funds are beginning to describe plans for a post “peak-Las Vegas” world. Interestingly enough, Apollo was rumored to be a contender in the purchase of this asset. Instead, a family office joined in a deal. Terrible signaling. LV RE has already seen a lot of sell-offs but I would not be surprised to see many more “quick” asset flips from the mega funds over the next few years.
Sep 28, 2021, 8:19 am
#10
Join Date: May 2010
Location: NYC
Programs: Delta Platinum, JetBlue Mosaic, Hilton Gold, Marriott Gold, Hyatt Explorist, IHG Gold
Posts: 297
Actually excited to see this. The Cosmo is my favorite LV property, but I still do enjoy Aria and Bellagio. I’ll likely never leave the MLife world while visiting Vegas now.
Sep 28, 2021, 8:21 am
#11
FlyerTalk Evangelist
Join Date: Dec 2003
Location: LAX
Posts: 10,906
Judging by what Blackstone did to hilton (and many other companies they took over) cosmo is done for. MGM is the least of concern here imo...
edit: did not realize BS owned it since 2014 - normally they squeeze every drop of profit over that timeframe but cosmo seems alive somehow
edit: did not realize BS owned it since 2014 - normally they squeeze every drop of profit over that timeframe but cosmo seems alive somehow
Last edited by azepine00; Sep 28, 2021 at 2:10 pm
Sep 28, 2021, 10:11 am
#12
Join Date: Mar 2011
Programs: Delta Skymiles
Posts: 1,982
A very fun and wonderful hotel. Haven’t been in years, I hope it stays in great shape. Would have been an awesome Grand Hyatt!
Sep 28, 2021, 10:18 am
#13
Join Date: Jun 2010
Location: Silicon Valley/Seattle/Vancouver
Programs: Hyatt Globalist; Aeroplan 35k; Alaska MVP Gold; Hilton Diamond (Aspire)
Posts: 86
I'm neither a low roller nor a high roller in Vegas. Somewhere comfortably in the middle. For my play, Cosmo have been exceedingly generous with comps and offers for 9 years.
I experimented a couple of times with MGM/Bellagio with a similar amount of play and hosts told me I warranted no or low offers.
I felt like since the Cosmopolitan was independent they always had to work harder and be more generous to get folks to stay and play there. Will miss that.
But this solves my conundrum of wanting to switch my play to ResortsWorld. Next month will probably be my final Cosmopolitan stay because I have no interest in MGM.
I experimented a couple of times with MGM/Bellagio with a similar amount of play and hosts told me I warranted no or low offers.
I felt like since the Cosmopolitan was independent they always had to work harder and be more generous to get folks to stay and play there. Will miss that.
But this solves my conundrum of wanting to switch my play to ResortsWorld. Next month will probably be my final Cosmopolitan stay because I have no interest in MGM.
Sep 28, 2021, 10:47 am
#14
Join Date: Apr 2021
Location: Manhattan, Palm Beach Island, San Francisco, Boston, & Hong Kong
Programs: Lifetime United Global Services, Delta Plat, Hyatt Globalist, Marriott Ambassador, & Hilton Diamond
Posts: 3,165
Sep 28, 2021, 11:14 am
#15
Join Date: Sep 2010
Location: Chicago
Programs: Hyatt Glob; UA 1K; BonVoyage LTT (RIP SPG); HH Dia; JX Insighter
Posts: 1,642
I'm neither a low roller nor a high roller in Vegas. Somewhere comfortably in the middle. For my play, Cosmo have been exceedingly generous with comps and offers for 9 years.
I experimented a couple of times with MGM/Bellagio with a similar amount of play and hosts told me I warranted no or low offers.
I felt like since the Cosmopolitan was independent they always had to work harder and be more generous to get folks to stay and play there. Will miss that.
But this solves my conundrum of wanting to switch my play to ResortsWorld. Next month will probably be my final Cosmopolitan stay because I have no interest in MGM.
I experimented a couple of times with MGM/Bellagio with a similar amount of play and hosts told me I warranted no or low offers.
I felt like since the Cosmopolitan was independent they always had to work harder and be more generous to get folks to stay and play there. Will miss that.
But this solves my conundrum of wanting to switch my play to ResortsWorld. Next month will probably be my final Cosmopolitan stay because I have no interest in MGM.
Having said that, if you haven't been to Resorts World yet, you may reconsider that decision. I was not impressed by the property in the least during a short visit a month or so after opening.