Big news from Las Vegas: MGM Resorts is selling two of its properties, the Bellagio to Blackstone Real Estate Income Trust and the Circus Circus to Phil Ruffin, who also owns Treasure Island. Both sales are expected to close in the fourth quarter our partner publication, Hotel Management, reports.
The Bellagio sale will see MGM and Blackstone form a joint venture, which will own the property. MGM will continue to lease the Bellagio from the joint venture, as well as continue to manage and operate the property. The Bellagio has 3,933 guestrooms, more than 100,000 square feet of gaming space and more than 200,000 square feet of meeting and event space, as well as retailers, botanical gardens and a variety of food and beverage venues. The hotel also hosts Virtuoso Travel Week.
The Circus Circus will go to an affiliate of Treasure Island owner Phil Ruffin. MGM had originally acquired that property when it acquired the Mandalay Resort Group in 2005. The Circus Circus has 3,767 guestrooms, an indoor amusement park, an RV park and a 37-acre festival grounds.
MGM said that the two sales are the first steps in an “asset-light” strategy, in which it enters into contracts with property owners instead of owning property outright. Other properties currently owned by MGM include the MGM Grand in Las Vegas, the MGM Springfield in Massachusetts, a 50 percent stake in CityCenter in Las Vegas and 68 percent of MGM Growth Properties.