Blackstone Group buys The Cosmopolitan of Las Vegas for $1.7 billion
Private-equity firm Blackstone Group LP has reached an agreement with Deutsche Bank to purchase The Cosmopolitan of Las Vegas for $1.7 billion. The hotel resort boasts 2 high rise towers, over a dozen restaurants, Marquee Nightclub/Dayclub, and an 1,800 seat theater. The German bank spent approximately $4 billion to build the extravagant 3,000 room Cosmopolitan and the sale represents one of the biggest losses of a single project the Strip has ever seen. Deutsche Bank has been struggling with failing profits and new banking rules, according to a company spokesperson the sale will have a “positive impact” on the bank’s Tier 1 capital ratio. Other bidders for the Cosmo includes Australian gaming company Crown Resorts, TPG Capital, and Caesars Entertainment Corp.