MGM Resorts is selling two more Las Vegas properties: the MGM Grand Las Vegas and the Mandalay Bay. As with its previous sales of Bellagio and Circus Circus Las Vegas, the move is part of the company’s new asset-light strategy in which it aims to operate resorts rather than owning them outright.
Late last year MGM closed on the sale of the Circus Circus Las Vegas and 37 adjacent acres for $825 million to an affiliate of Treasure Island owner Phil Ruffin. The Bellagio went to another joint venture between MGM and Blackstone REIT.
Together, the MGM Grand and Mandalay Bay comprise 9,743 rooms, approximately three million square feet of meeting space and approximately 300,000 square feet of casino space across 226 acres on the Las Vegas Strip. MGM Resorts' initial annual rent will be $292 million. MGM Growth Properties (MGP) currently owns the Mandalay Bay real estate, and MGM Resorts currently owns the MGM Grand real estate.