Blackstone Sells 22% Stake in Bellagio Las Vegas

Blackstone sold 21.9% of its stake in Bellagio Las Vegas to San Diego-based investment company Realty Income, which will invest approximately $300 million to acquire common equity interests from Blackstone Real Estate Income Trust (BREIT), according to a statement. 

The Bellagio, valued at $5.1 billion by Friday’s deal, has featured in movies such as "Ocean’s Eleven" and music videos by artists including Britney Spears and Drake. The hotel, opened in 1998, is operated by MGM Resorts International. The resort includes about 4,000 guest rooms across two towers on its 77-acre plot, with 157,000 square feet of space for them to gamble and multiple Michelin-starred restaurants, Realty Income said in a statement.

Blackstone's real estate fund, which has $333 billion in assets under management, will retain 73.1% of its indirect investments in the resort. MGM, which operates the resort and casino under a long-term lease, will also retain a 5% interest in the property.  

“This partial sale represents another terrific outcome for BREIT shareholders,” said Nadeem Meghji, the head of Blackstone Real Estate Americas, in the company’s press release.

Realty Income will also spend $650 million to acquire a yield-bearing preferred equity interest, bringing its total investment to $950 million.

“Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries,” said Realty Income CEO Sumit Roy. 

This is the second casino the company has invested in. Realty Income acquired Encore Boston Harbor Resort and Casino for $1.7 billion in 2022. “This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale and access to capital,” said Roy.