MGM Growth Properties last week agreed to pay MGM Resorts $637.5 million for the improvements and rebranding of the new Park MGM and NoMad Las Vegas. Formerly Monte Carlo, MGP already owned the building, but agreed to reimburse MGM Resorts for the renovations. The high end NoMad Las Vegas operates 293 of the property’s 2,700 rooms. Improvements included construction of the Park Theater, a 5,200-seat facility that features residencies by such stars as Cher, Lady Gaga and Jennifer Lopez.
MGM originally put a $550 million price tag on the Monte Carlo improvements, and MGP agreed to the final number. However the rent paid by MGM Resorts on Park MGM will increase by $50 million annually.
MGM Park is one of six MGM Las Vegas Strip casinos owned by MGP. The company recently spent $1 billion to buy the most successful casino in Ohio, Hard Rock Northfield, which will be run by MGM Resorts and rebranded.
“MGM Resorts will continue to deliberately reduce our owned real estate through accretive transactions in the future,” MGM Chairman and CEO Jim Murren said in a statement. “MGM Growth is an attractive partner to achieve this goal. We remain committed to our stated strategic objectives, including reducing our ownership stake in MGM Growth.”
