Although I don't like Las Vegas, this development has major implications for Hyatt and Marriott.
Cosmopolitan Las Vegas was sold to MGM
Although this was rumored for some time, it is now confirmed that Cosmopolitan Las Vegas has sold. MGM is also involved in the transaction:
Blackstone bought the Cosmopolitan Las Vegas property in 2014 for $1.74 billion. This is a great ROI.
MGM Resorts International, already the largest operator of the Strip, is part of the deal. MGM pays $1.6 billion to buy the casino and hotel operating rights. Then other investment firms pay $4 billion for the property assets
The transaction is expected close by early 2022
The Cosmopolitan is widely regarded as one the most luxurious mega-properties along the Strip. It boasts more than 3,000 rooms. Although the sector of hospitality is still in trouble, the Cosmopolitan's second quarter 2021 financial performance was better that pre-coronavirus.
MGM is buying the Cosmopolitan Las Vegas.
Cosmopolitan to leave Marriott Bonvoy and join World of Hyatt
I am interested in this deal because of its implications for major hotel loyalty programmes. The Cosmopolitan is currently a Marriott Autograph Collection hotel. This is a major advantage for Marriott as the property participates more or less in the Marriott Bonvoy program.
Although nothing has been announced officially (and the deal is expected to close in early 2022), it appears highly probable that the Cosmopolitan will end its relationship with Marriott. MGM Resorts International offers a M Life loyalty program and there is even a partnership between M Life International and World of Hyatt.
While World of Hyatt members don't get the same perks in Las Vegas as if they stay directly at Hyattss, they can earn and redeem points and take advantage of some perks.
My money is on the Cosmopolitan leaving the Marriott Bonvoy to join MGM M Life and, therefore, by connecting World of Hyatt. It remains to be seen when that will happen.
Could the Cosmopolitan Las Vegas be cutting ties to Marriott?
Bottom line
MGM has taken over the management of Cosmopolitan Las Vegas. This represents a significant shakeup in the Las Vegas casino and hotel scene.
Although we will have to wait and see how it plays out, I believe that Marriott will sell the hotel, as MGM has its own loyalty program. World of Hyatt members will likely be able earn and redeem points for stays at this property.
What do you think of the Cosmopolitan's latest update?
