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Did MGM sell the Bellagio?

Blackstone, one of the world's largest real estate investors, purchased the Bellagio in 2019 from MGM Resorts in a sale-leaseback transaction that valued the property at $4.25 billion.



MGM Resorts International sold the real estate assets of the Bellagio in 2019, but they did not sell the "operation" of the resort. In a massive $4.25 billion "sale-leaseback" transaction, the land and buildings were acquired by Blackstone Real Estate Income Trust (BREIT), with MGM retaining a 5% equity stake in the joint venture. In 2026, the arrangement remains the same: Blackstone owns the physical property, while MGM Resorts continues to manage and operate the hotel, casino, and Fountains of Bellagio under a long-term lease. This means that for a guest, nothing has changed; the staff are MGM employees, and the property is still part of the MGM Collection/Marriott Bonvoy partnership. This financial strategy, known as an "asset-light" model, allowed MGM to unlock billions in capital to reinvest in other ventures (like sports betting and international expansions in Japan) while maintaining control over the iconic brand and daily guest experience. So, while MGM no longer "owns" the dirt or the concrete, they very much still "run" the Bellagio.

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MGM owned the Bellagio until 2019, when it sold the resort to Blackstone Inc. for $4.25 billion. MGM continues to operate the property under a lease arrangement. Bellagio is located on 77 acres (31 ha).

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Caesars Palace is now owned by Vici Properties and operated by Caesars Entertainment.

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LAS VEGAS, May 17, 2022 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) (MGM Resorts or the company) today announced the closing of its transaction with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas (the property or The Cosmopolitan) for cash consideration of $1.625 billion.

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The sale of the oddly-specific 22% of Bellagio means the resort is valued at $5.1 billion. Blackstone acquired Bellagio for $4.25 billion. Blackstone used to be a bigger player in Las Vegas, but Vici Properties (another REIT) is the real whale, or as we've described it, “the Strip's landlord.”

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And the Bellagio's value shows the strength of Las Vegas' recovery. Blackstone — through its REIT Blackstone Real Estate Income Trust (BREIT) — spent $4.25 billion to buy the Bellagio from MGM Resorts in 2019, and its latest deal with Realty Income values the 4,000-room hotel at $5.1 billion.

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Another available example, the Las Vegas Bellagio, has a daily revenue of $1.27 million. It is worth noting that these are peak figures among casinos, less popular casinos have revenues that are in the thousands of dollars rather than millions.

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Vici recently completed the $17.2 billion acquisition of MGM Growth Properties making it by far the largest landlord on the Strip. The deal, which followed Vici's recent acquisition of the Venetian, makes the company the owner of the majority of the casinos on the Las Vegas Strip.

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MGM Resorts, which sold a 95 percent stake in the real estate of Bellagio to New York-based Blackstone's real estate investment trust in 2019 for $4.25 billion, retained the operations under a long-term lease agreement for $245 million in annual rent.

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Why is Luxor closing? While no official announcement has been made, a decision to bring down Luxor during a period of weak demand due to the COVID-19 crisis could make sense for the resort's owner, MGM Resorts. The company has long felt its hands are tied by the distinctive, but limiting, Egyptian theme.

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