The MGM Cosmopolitan Las Vegas acquisition was a game-changer for the company. Not only did MGM solidify its position on the west side of the Strip but it also picked up one of the hottest properties with a higher ADR (average daily rate for a room). Its sale of Mirage will help finance the purchase. In the realty world, it’s pretty straightforward. MGM is now the owner of Cosmo-Vegas operations.
This week we will get to a new construction update as well as some current renovations. We mentioned that MGM Resorts planned on renovating a portion of the rooms at MGM Grand after the company’s recent earnings call. Some of the rooms in the newly named Studio Tower (former West Wing) will be available in late October. The rest should be completed before the end of the year.
It is very real that we are seeing MGM taking small steps at Cosmopolitan. Last week we mentioned Silk Sonic performing at the Barbershop inside the Cosmopolitan as the first marker that MGM Resorts is taking over operations at the property. Typically performers at Park MGM make aftershow appearances at the same property. This was a change of pace to have an aftershow at a different MGM Resorts property.