Last Updated on July 24, 2026 by Daniel Globe
The Cosmopolitan of Las Vegas opened on December 15, 2010, after a difficult development process that ended with Deutsche Bank taking control of the unfinished resort. Its ownership has changed several times since then. Today, MGM Resorts International runs the hotel and casino, while a separate investment partnership owns the underlying real estate.
Quick Answer
MGM Resorts International owns and operates the Cosmopolitan’s hotel-and-casino business, but it does not own the underlying real estate. The land and buildings were acquired in 2022 by a partnership involving BREIT, Stonepeak, and the Cherng Family Trust. MGM runs the resort under a 30-year lease with annual rent increases.
Key Takeaways
- MGM Resorts acquired the Cosmopolitan’s operating business for $1.625 billion on May 17, 2022.
- A partnership involving Blackstone Real Estate Income Trust, Stonepeak, and the Cherng Family Trust acquired the real estate for approximately $4.025 billion.
- MGM’s lease began with annual rent of $200 million, but the amount increases every year and should not be treated as a fixed current figure.
- Deutsche Bank took control after the original developer defaulted on a construction loan in 2008. It was a foreclosure-related takeover, not a normal $1 billion purchase.
- The Cosmopolitan joined MGM Rewards in July 2024 while continuing its Autograph Collection affiliation and participation in MGM Collection with Marriott Bonvoy.
What’s in This Article
- Who Owns the Cosmopolitan Today?
- How the Cosmopolitan Got Its Start
- Major Stakeholders and Investors
- Blackstone’s Role in the Cosmopolitan
- The Construction and Foreclosure Story
- Who Controls Day-to-Day Operations?
- MGM Rewards, Marriott, and Other Partnerships
- Who Financed the Development?
- The Full Ownership Timeline
- How the 2022 MGM Transaction Worked
- How Ownership Changes Affect Guests
- What Could Change in the Future?
- Frequently Asked Questions
- Sources
Who Owns the Cosmopolitan Today?
The Cosmopolitan has a split ownership structure. One company owns the operating business, while a separate group owns the land and buildings. This structure is often called an operating-company and property-company arrangement.
| Operating business | MGM Resorts International acquired the entities that operate the hotel, casino, restaurants, entertainment venues, and guest services. |
| Land and buildings | The real estate was acquired by a partnership involving Blackstone Real Estate Income Trust, Stonepeak, and the Cherng Family Trust. BREIT expected to hold a majority interest when the transaction was announced. |
| Operating agreement | MGM leases the real estate for an initial 30-year term and has three optional 10-year renewal periods. |
| Rent | The lease began at $200 million per year. Rent rises 2% annually for the first 15 years. MGM reported annual cash rent of $212 million for the lease year that began June 1, 2025. |
| Loyalty programs | The resort participates in MGM Rewards and remains affiliated with Marriott’s Autograph Collection through MGM Collection with Marriott Bonvoy. |
Note: Marriott does not own the Cosmopolitan. Marriott provides a hotel-brand affiliation, reservation access, and Marriott Bonvoy participation for qualifying stays. MGM remains the resort operator.
How the Cosmopolitan Got Its Start
The Cosmopolitan began as a plan for a more design-focused luxury resort on the Las Vegas Strip. In April 2004, 3700 Associates acquired approximately 8.7 acres of land for the project. The development group was associated with real estate developer Ian Bruce Eichner, former Las Vegas Sands executive David Friedman, and Soros Fund Management.
The developers wanted the property to feel different from the large themed resorts that dominated Las Vegas. Plans emphasized contemporary design, art, restaurants, nightlife, and residential-style rooms with private terraces.
The original concept included a large condo-hotel component. Buyers would purchase individual units, and those sales were expected to provide part of the capital needed for construction. Early cost estimates were far below the eventual $3.9 billion development cost.
Site work began before construction of the two hotel towers. The confined parcel required extensive excavation for an underground parking structure before the buildings could rise. Tower construction followed in 2007.
Major Stakeholders and Investors
The Cosmopolitan’s history includes developers, lenders, private-equity funds, real estate investors, a family trust, and a major casino operator. Each entered the project for a different reason.
- 3700 Associates: Created and began developing the original resort concept.
- Deutsche Bank: Financed construction and later took control after the borrower defaulted.
- Blackstone Real Estate Partners VII: Bought the resort in 2014 and funded a major turnaround program.
- Blackstone Real Estate Income Trust: Participated in the partnership that acquired the real estate in 2022.
- Stonepeak: Invested in the property-owning company behind the land and buildings.
- Cherng Family Trust: Joined the 2022 real estate investment partnership.
- MGM Resorts International: Owns the operating business and manages the guest-facing resort.
The 2022 transaction separated the resort’s operating business from its physical real estate. MGM can focus on hotel, casino, dining, entertainment, and loyalty operations, while the property investors receive rent under a long-term lease.
Blackstone’s Role in the Cosmopolitan
Blackstone Real Estate Partners VII acquired the Cosmopolitan from Deutsche Bank in December 2014. Deutsche Bank reported a cash sale price of $1.73 billion.
Blackstone and the resort’s management team then carried out an extensive improvement program. According to Blackstone, it invested more than $500 million, renovated nearly 3,000 rooms, added 67 rooms and suites, upgraded gaming areas, and expanded the resort’s food-and-beverage offerings.
Those changes materially improved the property’s performance and positioned it for a much larger transaction. Blackstone reported that the resort’s second-quarter 2021 performance exceeded its pre-pandemic level.
Blackstone bought the Cosmopolitan for $1.73 billion in 2014, invested more than $500 million, and completed a $5.65 billion sale transaction in 2022.
The $5.65 billion figure should not be described simply as Blackstone tripling its entire investment. Blackstone contributed substantial additional capital after the purchase, and the final transaction separated the operating business from the real estate. Blackstone also remained involved through BREIT’s participation in the new real estate partnership.
The Construction and Foreclosure Story
The Cosmopolitan’s construction history is more complicated than a normal hotel development. A Deutsche Bank subsidiary provided a mortgage loan to the development company in December 2005. The borrower defaulted in January 2008 after failing to obtain the additional financing needed to continue the project.
Contemporary reports identified the defaulted construction loan as approximately $760 million. Deutsche Bank began exercising its rights as the senior lender and took control through a foreclosure-related process later in 2008.
This was not a normal purchase in which Deutsche Bank paid the developer $1 billion for the resort. Deutsche Bank was already the lender and assumed control of the unfinished collateral after the loan default.
The bank chose to continue construction rather than leave the partially completed towers unfinished. Perini Building Company remained involved as the general contractor, while design and operating plans were revised. Much of the proposed condo-hotel program was abandoned, and more units were converted into traditional hotel inventory.
The Cosmopolitan opened on December 15, 2010. Its reported development cost reached approximately $3.9 billion, making it one of the most expensive Las Vegas resort projects completed at that time.
Although early casino performance was weaker than expected, the property quickly gained attention for its private terraces, restaurants, nightlife, contemporary interiors, and art program.
Who Controls Day-to-Day Operations?
MGM Resorts International completed its acquisition of the operating business on May 17, 2022. MGM controls the guest-facing activities that most visitors associate with owning a resort.
These responsibilities include:
- Hotel reservations and front-desk operations
- Casino management and regulatory compliance
- Restaurants, bars, and room service
- Entertainment and nightlife
- Marketing and loyalty programs
- Staffing and day-to-day management
- Maintenance and required capital spending under the lease
The property-owning partnership holds the real estate and acts as MGM’s landlord. Its role is primarily tied to ownership of the land and buildings, the lease, rent collection, and the protections contained in the lease agreement.
This structure means a guest may reasonably say that the Cosmopolitan is “an MGM property,” even though MGM does not own the underlying land and towers.
MGM Rewards, Marriott, and Other Partnerships
The Cosmopolitan remains part of Marriott International’s Autograph Collection. That affiliation connects the resort with Marriott’s reservation network and Marriott Bonvoy program, but it does not give Marriott an ownership stake in the property.
The resort also participates in MGM Collection with Marriott Bonvoy. Marriott Bonvoy members can earn or redeem points on qualifying stays, although eligibility depends on the booking channel and rate. For example, reservations booked through Marriott’s approved channels can qualify, while some casino offers, complimentary stays, and discounted MGM rates may not.
The resort’s former Identity Rewards program ended in July 2024. On July 31, 2024, the Cosmopolitan officially joined MGM Rewards. Eligible Identity balances and status activity were converted into the MGM Rewards system.
Guests can now earn and redeem MGM Rewards benefits at the Cosmopolitan and across participating MGM Resorts destinations. The resort also continues to use its Autograph Collection identity, giving it access to both MGM’s casino-resort network and Marriott’s hotel-booking network.
Beyond loyalty programs, the Cosmopolitan works with chefs, restaurant operators, entertainment companies, artists, and luxury brands. These relationships help preserve the resort’s individual character under a larger corporate operator.
Who Financed the Development?
The original project used a combination of private investment and institutional debt. Members of the 3700 Associates development group contributed equity, while Deutsche Bank became the primary construction lender.
The condo-hotel plan was also intended to support construction. Buyers placed deposits on units that were expected to operate partly as residences and partly as hotel rooms. When financing markets weakened and the developer defaulted, that model could no longer carry the project to completion.
After taking control, Deutsche Bank continued funding the unfinished resort through affiliated credit arrangements. An SEC filing for the property reported a $3.9 billion credit facility, with approximately $3.1 billion outstanding at the end of 2010.
Deutsche Bank carried the property through opening and operated it through a subsidiary before selling it to Blackstone in 2014 for $1.73 billion. The sale price was far below the resort’s reported development cost, but it allowed the bank to exit a non-core asset.
The Cosmopolitan’s Full Ownership Timeline
- April 2004: 3700 Associates acquires approximately 8.7 acres on the Las Vegas Strip for the future Cosmopolitan development.
- 2005: The development structure and mortgage financing are put in place. Deutsche Bank becomes the main construction lender.
- 2007: Construction of the resort’s towers advances after extensive underground work.
- January 2008: The borrower defaults on its construction financing after failing to secure additional funding.
- 2008: Deutsche Bank takes control through the foreclosure and lender-remedy process and continues funding construction.
- December 15, 2010: The Cosmopolitan opens at a reported development cost of approximately $3.9 billion.
- December 2014: Deutsche Bank completes the $1.73 billion sale of the resort to an affiliate of Blackstone Real Estate Partners VII.
- 2014–2021: Blackstone invests more than $500 million in renovations, new rooms, gaming improvements, and food-and-beverage concepts.
- September 2021: Blackstone announces an agreement to sell the property through a transaction valued at $5.65 billion.
- May 17, 2022: MGM pays $1.625 billion for the operating business. A partnership involving BREIT, Stonepeak, and the Cherng Family Trust acquires the real estate for approximately $4.025 billion.
- May 17, 2022: MGM begins operating the resort under a 30-year lease with three optional 10-year renewals.
- July 2024: Identity Rewards is replaced by MGM Rewards at the Cosmopolitan.
- 2025–2026: MGM’s latest annual reporting continues to list the Cosmopolitan as an MGM-operated Las Vegas Strip resort under the long-term lease.
How the 2022 MGM Transaction Worked
The 2022 deal involved two connected transactions rather than one simple sale.
First, MGM Resorts paid $1.625 billion in cash for the entities that own the Cosmopolitan’s operations. MGM’s later accounting placed the total operating-business purchase price at approximately $1.7 billion after working-capital adjustments.
Second, a partnership involving BREIT, Stonepeak, and the Cherng Family Trust acquired the underlying real estate for approximately $4.025 billion, excluding transaction costs. Together, the operating and real estate components produced the announced $5.65 billion transaction value.
MGM then entered a 30-year net lease with the property-owning partnership. The agreement gives MGM three optional 10-year renewal periods.
The lease began with annual rent of $200 million. It increases by a fixed 2% each year during the first 15 years. After that period, the increase is the greater of 2% or the previous year’s Consumer Price Index increase, subject to a 3% cap.
MGM’s 2025 annual report stated that annual cash rent was $212 million for the lease year beginning June 1, 2025. This confirms that the frequently repeated $200 million figure was the starting rent, not a permanently fixed payment.
Pro Tip: When reading reports about casino ownership, check whether the article is discussing the operating business or the physical real estate. MGM owns the Cosmopolitan’s operations but leases its land and buildings.
Before the transaction closed, Blackstone awarded approximately 5,000 Cosmopolitan employees a $5,000 bonus. Contemporary reports placed the total cost at more than $27 million.
How Ownership Changes Affect the Guest Experience
Each ownership period has influenced the property in a different way. Deutsche Bank finished the resort and brought it to opening. Blackstone funded major renovations and operating improvements. MGM connected the Cosmopolitan with a much larger casino, hotel, marketing, and loyalty network.
The most visible recent change was the 2024 move from Identity Rewards to MGM Rewards. Guests can now use MGM Rewards benefits at the Cosmopolitan and other participating MGM properties.
The Marriott relationship also continues. Guests who book a qualifying stay through an eligible Marriott channel can earn Marriott Bonvoy points or redeem points, subject to the program’s terms.
MGM has kept many of the features that distinguish the Cosmopolitan, including its private terraces, art-focused interiors, restaurant collection, nightlife, and contemporary branding. Guests comparing other hotels near the Sphere or elsewhere on the Strip may find the Cosmopolitan more design-focused than MGM’s larger themed resorts.
The separate real estate ownership is mostly invisible to visitors. It affects financing, rent, capital obligations, and long-term corporate decisions rather than routine check-in, dining, gaming, or entertainment.
What Could Change in the Future?
MGM’s initial lease term runs for 30 years from May 17, 2022. That places the scheduled end of the initial term in 2052, subject to the full lease terms. MGM also has three optional 10-year renewal periods.
The long lease gives MGM a strong reason to maintain the property, protect the brand, and fund required improvements. It also gives the real estate owners a predictable rental stream from an established resort operator.
An investor in the property-owning partnership could eventually sell or restructure its interest. Such a transaction would not automatically remove MGM as the operator because the lease is attached to the real estate and contains long-term contractual rights and obligations.
MGM’s 2025 annual report continued to list the Cosmopolitan as an MGM-operated Las Vegas Strip resort under the same lease structure. No different operator or replacement ownership structure is reflected in the current official sources cited below.
Frequently Asked Questions
Who currently owns the Cosmopolitan Hotel in Las Vegas?
MGM Resorts International owns the operating business and manages the resort. The real estate was acquired by a partnership involving Blackstone Real Estate Income Trust, Stonepeak, and the Cherng Family Trust.
Does MGM own or lease the Cosmopolitan?
MGM owns the entities that operate the hotel and casino, but it leases the land and buildings. The initial lease term is 30 years, with three optional 10-year renewals.
When did MGM take over the Cosmopolitan?
MGM Resorts completed its $1.625 billion acquisition of the Cosmopolitan’s operating business on May 17, 2022.
Does Marriott own the Cosmopolitan?
No. Marriott does not own the Cosmopolitan. The resort is affiliated with Marriott’s Autograph Collection and participates in MGM Collection with Marriott Bonvoy, but MGM operates it and a separate investment partnership owns the real estate. You can read more about Marriott hotel ownership and how brand affiliations differ from property ownership.
How much rent does MGM pay for the Cosmopolitan?
The lease began at $200 million per year, but that amount rises annually. MGM reported $212 million of annual cash rent for the lease year beginning June 1, 2025. The contract requires 2% annual increases during its first 15 years.
What happened to Identity Rewards?
Identity Rewards ended in July 2024 when the Cosmopolitan officially joined MGM Rewards. Eligible Identity points, gaming balances, and status activity were converted according to MGM’s transition rules.
Who was the original developer of the Cosmopolitan?
The original development was led by 3700 Associates, a group associated with Ian Bruce Eichner, David Friedman, and Soros Fund Management. Deutsche Bank later took control after the borrower defaulted on construction financing.
How much did Blackstone pay for the Cosmopolitan?
Blackstone acquired the Cosmopolitan from Deutsche Bank for $1.73 billion in 2014. It later invested more than $500 million in improvements before completing a transaction valued at $5.65 billion in 2022.
Could the real estate owners sell while MGM remains the operator?
Yes. An investor could sell or restructure its real estate interest without automatically ending MGM’s operating role. MGM’s rights and responsibilities are governed by the long-term lease, which would normally continue unless changed under its contractual terms.
The simplest way to understand the Cosmopolitan’s ownership is to separate the business from the building. MGM Resorts owns and runs the hotel-and-casino operation. A real estate investment partnership owns the physical property and leases it to MGM. That distinction shapes the resort’s financing, but most guests experience the Cosmopolitan as an MGM-operated luxury resort with access to both MGM Rewards and qualifying Marriott Bonvoy benefits.
Sources
- MGM Resorts acquisition announcement — confirms the operating-business price, closing date, lease term, original rent, and escalation formula.
- Blackstone completion announcement — confirms the $5.65 billion transaction and the real estate partnership.
- MGM Resorts 2025 Form 10-K — confirms the continuing lease, current reporting structure, and the $212 million lease-year rent reported for 2025.
- Nevada Property 1 LLC Form 10-K — supports the original land acquisition, Deutsche Bank mortgage, development financing, and December 15, 2010 opening.
- MGM Rewards integration announcement — confirms the July 2024 transition from Identity Rewards to MGM Rewards.
- Marriott MGM Collection guidance — confirms current Marriott Bonvoy participation and qualifying-stay requirements.