MGM Earmarks $110 Million for Bellagio Upgrades, 2024 Enhancements Planned
Posted on: March 31, 2023, 04:16h.
Last updated on: March 31, 2023, 04:16h.
MGM Resorts International pledged to spend $110 million on Bellagio enhancements, including all rooms and suites in the Spa Tower.
The Spa Tower redesign pertains to 819 guest rooms and 104 suites and is slated to wrap up in October. It comes on the heels of a recent remodel of more than 2,500 guest rooms in Bellagio’s main tower. The Spa Tower renovations are said to be inspired by Lake Como in Italy.
Bellagio Spa Tower suites will feature sophisticated design elements, custom furnishings and art influenced by high Italian style and couture, while color palettes draw inspiration from the natural vibrancy of Lake Como and the Alps,” according to a statement.
MGM operates the famed Las Vegas Strip venue while its property assets are owned by Blackstone Real Estate Income Trust (BREIT), which is controlled by private equity giant Blackstone. BREIT completed its $4.25 billion purchase of the venue in November 2019. Bellagio is the lone domestic gaming venue operated MGM where the real estate is not owned by VICI Properties.
More Bellagio Upgrades Planned
Under the terms of triple-net leases, which are standard operating fare in the gaming industry, contracts are typically lengthy and operators, not landlords, are financially responsible for repairs and updates to the property.
BREIT’s ownership of Bellagio’s real estate came by way of a sale-leaseback agreement in which MGM sold the venue to real estate firm for an upfront payment and entered a long-term lease with the new owner to continue operating the venue.
Sale-leaseback deals, or SLBs, are commonplace in the industry and often viewed as win-wins for casino operators and real estate companies. Through these agreements, a gaming company can monetize land assets, often garnering large, upfront sums of cash to use for anything, including more acquisitions, shareholder rewards such as buybacks and dividends, or to reduce debt.
Bellagio is one of the glitziest venues on the Strip and it, along with Cosmopolitan, position MGM to compete for high-end customers that spend big on gaming, dining and more. As such, it’s essential to keep those properties (and others) fresh and up-to-date. That’s the plan with Bellagio as more upgrades are in the works.
“In 2024, resort-wide guest room enhancements will culminate with the redesign of the Bellagio Tower’s approximately 400 suites, a project that also will be brought to life by the award-winning team at Champalimaud Design,” added MGM in the statement.
Bellagio Spa Tower Upgrade Details
As noted above, all of the rooms and suites in Bellagio’s Spa Tower will be refreshed, including “King” and “Queen” rooms.
“The King Room will feature a palette emulating the sunrise reflecting on the water in a symphony of blues and greens. The Spa Tower’s Two Queen Room is designed around a lake sunset, integrating deep, calming tones with flickers of gold and amber,” noted the operator.
Home of the iconic fountains, Bellagio carries a prestigious Five Diamond rating from AAA.
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Source: casino.org
