Did you test your gambling habits yet?



MGM Resorts to Acquire Vegas Strip Venue

MGM Resorts International (NYSE: MGM) has announced that it has reached an agreement to acquire the 50% stake in CityCenter that is currently held by Infinity World Development. The company will then sell the entire Las Vegas Strip venue to Blackstone (NYSE: BX).

CityCenter occupies close to 1.6 million square meters in the middle of the Strip, and it is home to the Aria Resort & Casino and Vdara Hotel and Spa.

The deal, which is designed to fully monetize the CityCenter real estate, will see MGM hold 100% of CityCenter Holdings LLC after purchasing Infinity World’s stake for $2.125 billion. According to MGM, this represents an implied valuation of $5.8 billion, based upon net debt of $1.5 billion and after a recent sale of a two-acre piece of land on the site.

Once MGM has full ownership of CityCenter, the company will then sell it to funds managed by The Blackstone Group for $3.89 billion in cash. The Aria and Vdara will then be leased back to MGM for $215 million per year.

Bill Hornbuckle CEO and President of MGM Resorts

CityCenter has consistently elevated the Las Vegas experience over the years, contributing to this vibrant city’s undeniable position as a top tourism and business destination. Uniting all of CityCenter under MGM Resorts’ corporate structure and strategy will allow us to consolidate financial results, build on efforts to strengthen our operating model and guest experience and further our vision of becoming the world’s premier gaming entertainment company.

Bill HornbuckleCEO and President of MGM Resorts

Talking about the agreement with Blackstone, Hornbuckle explained that the transaction demonstrates the premium value of MGM’s real estate assets and is a testament to the hotel and casino’s status as “premier destinations”. He added, “We expect to continue executing on our asset-light strategy and utilizing the proceeds from our real estate transactions to enhance our financial flexibility and secure new growth opportunities.”

MGM has completed similar deals in the past, for the Bellagio in November 2019 and the MGM Grand and Mandalay Bay in January 2020. The company expects the new transactions to be complete within the third quarter of this year.

More Business News


Leave a Comment

user avatar
My Name United States of America
Your Comment

User Comments

Comments for MGM Resorts to Acquire Vegas Strip Venue