Cosmopolitan Selling Gulfstream Jet for $9M
Posted on: September 21, 2022, 12:06h.
Last updated on: September 21, 2022, 02:58h.
The Cosmopolitan Las Vegas is selling a corporate jet for almost $9 million.
To be precise, the 2002 Gulfstream GIV-SP, parked in Las Vegas, is listed by Colorado-based Mesinger Jet Sales for $8.99 million. Mesinger notes there have been two owners since 2002, both based in the US.
Through constant market research, we know how to accurately value an aircraft that we’re considering for an acquisition client and price an aircraft that we plan to list for a brokerage client. When an aircraft is priced and promoted correctly, time on the market is significantly reduced,” according to Mesinger.
Neither Cosmopolitan nor Mesinger noted the plane’s primary use, though it was likely to transport VIPs to and from Las Vegas. The Gulfstream GIV-SP, which has 16 seats in the galley, passed fresh 48/24/12-month tasks earlier this month.
No Mention of Cosmopolitan Operator
The $5.6 billion sale of the Cosmopolitan wrapped up on May 17, with MGM Resorts International (NYSE: MGM) paying $1.6 billion to Blackstone (NYSE: BX) for the operating rights to the Strip venue.
A group comprised of the Cherng Family Trust, Stonepeak Partners, and Blackstone Real Estate Income Trust (BREIT) paid $4 billion for the integrated resort’s property assets.
Neither MGM nor the real estate group is mentioned on the Mesinger Jet Sales website, implying Blackstone remains the jet’s owner. While the private equity company has gaming interests around the world and owns real estate stakes in some of the glitziest Strip venues, it’s no longer involved with the day-to-day operations of US-based casinos. That likely diminishes the need for an aircraft operating out of Las Vegas.
MGM — the largest operator on the Las Vegas Strip — has five planes in service, according to the Pilot Career Center. Two are E190VIP – Embraer Lineage Corporate jets, while another pair are E135VIP – Embraer Legacy 500 Corporate planes. The last is a Gulfstream G650.
Jets Make Sense for Casino Operators
Corporate jets aren’t unique to the gaming industry. But they are a sensible expenditure for casino operators.
That’s particularly true for a company such as MGM that has a domestic portfolio comprised of a vast Strip footprint, as well as extensive regional holdings. It’s common for gaming companies with those traits to fly highly-rated players from regional markets to Las Vegas.
For example, MGM could fly a rated, big-spending bettor to Sin City from Massachusetts, where it runs MGM Springfield, to reward that customer for loyalty and to spur more spending on the Strip.
Additionally, MGM owns 56% of MGM China, meaning its executives take occasional trips to Macau. That further justifies its fleet of aircraft.
Last year, Las Vegas Sands spent about $800K on private air travel for executives — good for one of the highest totals among all S&P 500 companies.
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