Posted: September 21, 2022, 12:06 p.m.
Last update on: September 21, 2022, 12:06 p.m.
The Cosmopolitan Las Vegas is selling a business jet for nearly $9 million.
To be specific, the 2002 Gulfstream GIV-SP, which is parked in Las Vegas, is listed by Colorado-based Mesinger Jet Sales for $8.99 million. Mesinger notes that there have been two owners since 2002, both based in the United States.
Through constant market research, we know how to accurately price an aircraft we are considering for an acquisition client and price an aircraft we plan to list for a brokerage client. When an aircraft is priced and promoted correctly, the time to market is significantly reduced,” according to Mesinger.
Neither Cosmopolitan nor Mesinger note what the aircraft’s primary use was, but it was likely used to ferry VIPs to and from Las Vegas. The Gulfstream GIV-SP, which has 16 seats in the galley, passed new tasks of 48/24/12 months earlier this month.
No mention of cosmopolitan operator
The $5.6 billion sale of The Cosmopolitan closed on May 17, with MGM Resorts International (NYSE:MGM) paying $1.6 billion to Blackstone (NYSE:BX) for the rights to operate the site of the Strip.
A group consisting of the Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust (BREIT) paid $4 billion for the real estate assets of the integrated complex.
Neither MGM nor the real estate group is mentioned on the Mesinger Jet Sales website, implying that Blackstone remains the owner of the jet. Although the private equity firm has gambling interests around the world and owns real estate stakes in some of the Strip’s glitziest venues, it is no longer involved in the day-to-day operations of US-based casinos. This probably lessens 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 aircraft. The rest is a Gulfstream G650.
Rolls make sense for casino operators
Business jets are not unique to the gaming industry. Far from it, but it is a reasonable expense for casino operators.
This is especially true for a company such as MGM which has a national portfolio comprised of a large band footprint as well as large regional holdings. It is common for gaming companies with these characteristics to transport highly rated players from regional markets to Las Vegas. For example, MGM could fly a valued, high-spending gambler to Sin City from Massachusetts, where it operates MGM Springfield, to reward that customer for loyalty and stimulate more spending on the Strip.
Additionally, MGM owns 56% of MGM China, which means its executives travel to Macau occasionally. This further justifies its aircraft fleet.
Last year, Las Vegas Sands spent about $800,000 on private air travel for executives, which is one of the highest totals of any S&P 500 company.