MGM Resorts International is one of several US casino companies that’s interested in selling property in Las Vegas. It’s a new strategy that many companies are taking in order to invest more money in different US cities and abroad. For now, MGM Resorts selling some of its major properties makes sense.
This week, the two properties that MGM is interested in selling were revealed. Today, we’re going to look at which hotel-casinos could be sold and how this will affect the company’s future plans.
Let’s get into it!
MGM Resorts International Sells Bellagio and Circus Circus
Las Vegas is home to the country’s biggest and best hotel-casinos. Interestingly, several companies own a huge number of gambling venues here. MGM Resorts International, for example, owns more of these hotel-casinos than any other company.
MGM Resorts is one of the most profitable casino companies in the world. Recently, it’s begun looking at new ways to invest in properties overseas. In order to achieve this goal, MGM has begun selling some of its major Las Vegas properties. Just last month, two popular hotel-casinos here were officially let go.
First, MGM Resorts sold Circus Circus. The property was purchased by Phil Ruffin, who already owns Treasure Island on the Las Vegas Strip. Circus Circus was sold for $825 million.
Just days after, news broke of MGM Resorts selling The Bellagio Hotel & Casino. This legendary casino-resort was sold to the Blackstone Group for an astounding $4.2 billion. MGM is now leasing the property back for a rent of $245 per year.
This company is prepared to keep these property sales up. Officials have confirmed that two other venues could soon be sold.
Is MGM Resorts Selling Too Many Properties?
MGM Resorts is making it clear that they are willing to give up their most profitable casinos. The Bellagio is considered to be one of the most popular and lucrative casino-resorts in the country. It now appears that two additional properties in Las Vegas will soon be sold.
The Las Vegas Review-Journal is covering the news of MGM Resorts selling these venues. The company is interested in selling the MGM Grand and Mandalay Bay Hotel & Casino. These venues could be purchased by MGM Growth, a major real estate investment trust.
MGM Growth departed from MGM Resorts International more than three years ago. Now, officials are discussing plans for MGM Growth to acquire the real estate assets of both MGM Grand and Mandalay Bay.
It’s one of the biggest deals in MGM Growth’s history. The company is now planning to sell more than 24 million shares to fund this new deal with MGM Resorts.
Based on the new reports, MGM Grand will be purchased by MGM Growth and then leased-back to MGM Resorts. It’s a similar deal made with the Blackstone Group.
Eldorado Resorts Prepares for Las Vegas Casino Sales, As Well
As we mentioned earlier, several companies have recently begun selling property in Las Vegas. Eldorado Resorts is nearly finished with its acquisition of Caesars Entertainment. It’s likely that immediately afterward, this company will choose to sell some of its venues.
It cost $17.3 billion for Eldorado Resorts to purchase Caesars Entertainment. Property sales are necessary to help make up for this cost. Exactly which venues will be sold is still unknown.
Shareholders within Caesars Entertainment have just recently approved the merger with Eldorado Resorts. It’s now awaiting regulatory approval.
Eldorado Resorts and MGM Resorts selling property in Las Vegas is reasonable. Both companies want to begin investing more in operations overseas.
Stay tuned for more Las Vegas casino news over the next few months!