Excerpts: Cosmopolitan may be for sale on Las Vegas Strip

  • The Blackstone Group LP, a major player in the Southern Nevada real estate market, has retained Deutsche Bank AG and PJT Partners, Inc. to explore strategic alternatives for the property, including a sale, according to sources familiar with the deal.
  • Chad Beynon, an analyst with Macquarie Research, told the Review-Journal The Cosmopolitan could sell for as high as 13 times its cash flow — which is more than $300 million — implying a price tag of $4 billion.
  • Blackstone acquired The Cosmopolitan in 2014 for $1.73 billion and invested $500 million to finish 21 large suites on the top four floors of one tower targeted for high rollers. It also renovated other rooms enabling the resort to command among the highest average daily room rates on the Strip, exceeding $300 a night. The company also added 18 new bars and restaurants in an effort to appeal to a younger crowd.

Source: Las Vegas Review-Journal