Blackstone Inc. is weighing offers for half of its interest in the real estate of the Bellagio casino and hotel in Las Vegas.
According to Bloomberg News, the US investment company is considering its options and has not yet committed to a sale. As Bloomberg stated, it is according to people familiar with the matter who asked “not to be identified” because the “deliberations are private.”
Blackstone purchased Bellagio from MGM Resorts almost four years ago.
Blackstone plans to sell to Prologis for $3.1 billion
US investment giant has been looking to cash out on some of its real estate positions. On June 26, Blackstone revealed its plans to sell warehouses and industrial properties to Prologis Inc. for $3.1 billion.
Representatives of Blackstone and MGM did not provide any comments to Bloomberg. It’s important to note that the stake would be in the real estate the Bellagio occupies, not the casino’s operations.
Blackstone agreed to sell the Cosmopolitan casino and hotel in Las Vegas in 2021. In December 2022, the company sold its half interest in the MGM Grand and Mandalay Bay resorts to Vici Properties Inc.
Blackstone purchased Bellagio in 2019
Famous for its outdoor fountain shows, Bellagio is among the best-performing resorts on Las Vegas Strip. Its sale was a land deal with a real estate company so not much has changed. The casino’s original owner, MGM Resorts International, continues to run the Bellagio under a long-term lease.
Blackstone Real Estate Income Trust purchased the Bellagio in 2019 from MGM Resorts International for $4.25 billion in cash and a 5% ownership stake. Blackstone called for a joint venture to acquire Bellagio and lease it back to MGM for an initial yearly rent of $245 million.
MGM announced the Bellagio deal the same day it said it was selling Circus Circus for $825 million to Treasure Island owner Phil Ruffin.
Bellagio remains among the top-performing resorts on The Strip
The Bellagio resort, including a casino and a luxury hotel, has been running since 1998. It features:
- 3,933 rooms
- 155,000 square feet of casino space
- 77 acres of land
Other attractions include the Bellagio Gallery of Fine Art, botanical gardens and a conservatory.
MGM Resorts International acquired Bellagio in 2000 as part of its $4.4 billion buyout of Steve Wynn’s company Mirage Resorts.