View of the Las Vegas Strip
Las Vegas. A place full of casinos, flashing lights, fancy restaurants and tourists, but also a city with some of the most famous hotels in the world. The most famous ones are located on the so-called Strip, i.e. a roughly seven-kilometer boulevard in the middle of the metropolis – and that’s where the billion-dollar casting took place. The iconic resorts MGM Grand and Mandalay Bay are coming under a new owner who has been controlling the heart of the “city that never sleeps” for many years.
MGM Grand, which the general public may know from the movie series Danny’s sidekicks with George Clooney and Brad Pitt, and Mandalay Bay is heading fully under the wing of Vici Properties. She is one of the main players in Las Vegas when it comes to renting real estate. For example, it owns equally well-known resorts such as Park MGM, New York-New York, Luxor or Excalibur, which it leases to the casino giant MGM Resorts International.
Now Vici’s management has reached an agreement with the Blackstone financial group, with whom Vici has long-term controls real estate on the Las Vegas Strip, that it will buy a 49.9 percent stake in the MGM Grand and Mandalay Bay resorts. And since Lomeno Casinos already held a 50.1 percent stake in these hotels, it will now become the overall owner. The deal is expected to be completed early next year.
Vici will pay $1.27 billion (29.4 billion crowns) for the remaining stake and take over Blackstone’s share of the resorts’ debt. This should total three billion dollars, so for Vici it means taking over a debt of almost 1.5 billion dollars (34.7 billion crowns). “We are excited,” says Vici boss Ed Pitoniak. “It will simplify our structure and give us full ownership of two of the lesser-known assets in Las Vegas – the MGM Grand and Mandalay Bay,” he adds.
Vici will thus strengthen its influence on , one of the most visited places in the United States, which has suffered greatly from the impact of the pandemic, and will thus fully receive more than 1, 6 million square meters of space that MGM Grand and Mandalay Bay occupy, along with eleven thousand rooms. The number of rooms also includes the neighboring Delano Las Vegas hotel tower and the Four Seasons hotel, which is located directly inside Mandalay Bay.
The MGM Grand casino resort, also known from the film series Danny’s cronies
Blackstone will however have even after the final real estate move on the Strip is complete, it holds a large position given that it owns four other huge hotels operated by MGM Resorts International. Three years ago, he bought the Bellagio resort for $4.2 billion (more than 97 billion crowns at today’s exchange rate), and last year he negotiated the acquisition of the Aria and Vdara properties for almost $3.9 billion (over 90 billion crowns at today’s exchange rate). He also still owns a stake in the properties of the iconic resort The Cosmopolitan.
However, this is not the first major change in the last year. Last December, the news got out that The Mirage resort , which was supposed to transfer from MGM Resorts International, or Vici, would also change its owner under Hard Rock International, operator of the Hard Rock restaurant franchise. According to available information, however, the deal has not yet been completed and it is a question of when it will happen.
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