MGM Resorts International announced Tuesday it plans to sell the MGM Grand and Mandalay Bay properties on the Las Vegas Strip for $2.5 billion.
According to the Wall Street Journal, MGM Growth Properties LLC announced as part of its partnership with private-equity and real estate company Blackstone Group that it would purchase the two properties, with MGM Resorts continuing to operate them for an initial rent of $292 million.
MGM Resorts plans to close the deal by the end of March, subject to certain closing conditions.
“These announcements represent a key milestone in executing the company’s previously communicated asset-light strategy, one that enables a best-in-class balance sheet and strong free cash flow generation to provide MGM Resorts with meaningful strategic flexibility to create continued value for our shareholders,” MGM Resorts CEO Jim Murren said in a statement.
The sale of the MGM Grand and Mandalay Bay come after MGM Resorts announced two blockbusters deals in October.
Not only did the company reach an agreement to sell Circus Circus Las Vegas for $825 million to an affiliate of Treasure Island owner Phil Ruffin, but it also sold the Bellagio for $4.25 billion to Blackstone Real Estate Income Trust.
Combined, the sales of the four properties are “expected to provide total net cash proceeds to MGM Resorts of $8.2 billion.”
“The valuation levels achieved on the Bellagio and MGM Grand Las Vegas transactions are a testament to MGM Resorts as a high-quality tenant and our overall asset quality,” MGM Resorts’ Paul Salem said. “The robust interest in our recent transactions further validates the company’s conviction on being able to unlock value for our shareholders through its asset light strategy.”
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Velas Resorts Invites Future Travelers to Dream Together
As hotels and resorts throughout many popular tourist destinations remained closed over the past few months, eager travelers sat home awaiting the day they can safely board a plane to their favorite home away from home.
Although Velas Resorts‘ properties may not have been open for visitors, the company kept travelers busy from afar, offering daily inspiration on the Velas Magazine and inviting people to continue #DreamingTogether.
“After all this time staying at home, we are gearing up to welcome you and continue creating special moments for you. Please join us on this countdown to add new travel anecdotes while we keep #DreamingTogether!” the company said.
From fun activity ideas to do with children and DIY projects to test creative skills to wardrobe and fashion inspiration and recipes to try making at home, the Velas Magazine’s daily content provides plenty of ways to spice up life in quarantine.
There is even advice available on how to capture the best vacation photos on your phone and helpful tips on how to compost at home in order to maintain a beautiful garden.
All of these exciting pastimes are only a small sample of what guests staying at Velas Resorts’ properties will experience.
In addition to using this time to provide future travelers with things to do while staying safely at home, the company has also created new post-COVID-19 hygiene protocols. Its Stay Safe With Velas program includes new guidelines such as physical distancing measures, touchless sanitizer stations and frequent hand washing in addition to enhanced cleaning measures for guestrooms and resort areas.
Velas Resorts includes three luxury resorts—Grand Velas Riviera Nayarit, Grand Velas Los Cabos and Grand Velas Riviera Maya—totaling 1,170 rooms and suites. Visitors to these properties are treated to gourmet restaurants, stunning landscapes, luxury wellness opportunities and top-notch hospitality throughout their stay.
The company looks forward to welcoming guests backs soon and until then, encourages people to keep #DreamingTogether.
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