Late last week, there was an interesting development around Marriott’s Autograph Collection Cosmopolitan hotel/casino in Las Vegas that will have change in ownership.
Deutsche Bank that became the owner of the project after the developer defaulted on a construction loan back in 2008 has agreed to sell the property to Blackstone.
You can access New York Times article about this change here.
Blackstone is a private equity shop that buys and sells investment vehicles/distressed assets such as hotels. It recently partially spun off its investment in Hilton hotels via an IPO.
Deutsche Bank has been an unwilling owner the entire time and has been shopping the casino for prospect buyers. Seems that the Blackstone’s offer of $1.73 billion in cash was enough.
At some point in time this project was becoming a Grand Hyatt, Hilton’s Denizen hotel (plans were scrapped after SPG sued Hilton), SPG’s W and who knows what else.
Many must have been thinking that Blackstone’s buying of this property would indicate it becoming affiliated with Hilton, but this change in ownership doesn’t mean that the property would ditch its partnership with Marriott.