Still, the nine-figure rental rates show what MGM is willing to pay to keep running its properties and to take over another towering resort on the Strip, The Cosmopolitan, without buying its real estate.Ī landlord and tenant determine a casino-resort’s rental rate based on a property’s earnings, stability, market and possible corporate guarantee, according to Truist Securities analyst Barry Jonas. Moreover, all of the deals involved the same company on the other side of the table, New York financial giant Blackstone, which has been gobbling up real estate in Southern Nevada for years. Its initial annual rent ranges from $200 million for The Cosmopolitan to $292 million for MGM Grand and Mandalay Bay.Īll but one of the deals involved sale-leasebacks that netted MGM a fortune in proceeds, including more than $4 billion for Bellagio alone. MGM Resorts International has reached deals since fall 2019 to lease Bellagio, MGM Grand, Mandalay Bay, Aria, Vdara, and, as announced this week, The Cosmopolitan of Las Vegas.

Those sales have also shown what casino operators - well, one in particular - are willing to pay to rent these properties. (Benjamin Hager/Las Vegas Review-Journal) a burst of multibillion-dollar deals, Las Vegas has seen investors pay mountains of money the past few years to own high-profile casino-resorts.

Pedestrians walk past The Cosmopolitan of Las Vegas on Monday, Sept.

Every casino mgm owns