The U.S. economy appears to be on the decline, but a Las Vegas casino still awarded employee bonuses as part of a soon-to-be-completed $1.6 billion sale.
The Cosmopolitan of Las Vegas on Wednesday award more than 5,000 of its workers with a $5,000 cash bonus, for a total bonus payment of about $27 million.
The current owner of the casino is Blackstone Group, a private equity firm located in New York City. MGM Resorts International, based in Las Vegas, is acquiring the operations of the upscale casino on the Las Vegas Strip for a price tag of $1.6 billion. The employee bonuses represent about 1.5% of the sale price.
The deal for the casino-hotel that opened in late 2010 is expected to close soon.
Blackstone purchased the casino from Deutsche Bank AG in 2014 for $1.73 billion. It had previously sought a sale price of around $5 billion for the casino.
Following closing, MGM will enter into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak Partners, Cherng Family Trust, and Blackstone Real Estate Income Trust, which will acquire Cosmopolitan’s real estate assets.
“We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio,” said MGM Resorts CEO & President Bill Hornbuckle when the deal was announced in 2021. “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.”