![]() ![]() When it was built, the gold tower was reported to be the tallest building in Mississippi. We view the transaction as largely equity-value neutral.”Īt 32 stories tall, the iconic property is one of the most recognizable buildings in Tunica and towers above all other structures. “In its entirety, based on 2021 results, which were inflated, MGM is exiting the asset at a multiple of 6.7x 2021 EBITDAR, or 8.5x the average EBITDAR from 20. “Thus, when looked at in its entirety, in exchange for the $115 million of EBITDAR, MGM is receiving $450 million of gross cash proceeds ($350 million net cash proceeds) and debt (capitalized rent) relief of $320 million, or total gross proceeds of $770 million,” Santarelli said. “It also speaks volumes for regional gaming.” “It speaks volumes that as some of these larger companies look to divest assets, as we have seen with MGM with Mirage and now with Gold Strike, that tribal interests will be taking over the operations of these facilities,” said Brendan Bussmann, managing partner of B Global. In May, MGM took over the operations of The Cosmopolitan Las Vegas for $1.6 billion. “We appreciate VICI, as the real estate owner of Gold Strike, working constructively with CNE to facilitate a new lease agreement.”Įarlier this year, MGM announced the sale of the operations of the Mirage in Las Vegas to Hard Rock International owned by the Seminole Nation of Florida for $1.07 billion, closing by the end of 2022. “This is a great outcome for the company, as we can reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations,” said Jonathan Halkyard, CFO and Treasurer, MGM Resorts International. ![]() The company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. The purchase price represents about an 11-times multiple on the average Adjusted Property EBITDA from 2019 to 2021. “Strategically, though, we decided to narrow our focus in Mississippi to a single resort, Beau Rivage (in Biloxi on the Gulf Coast), and dedicate more of our time and resources to continuing to drive success there.” ![]() “Gold Strike is a wonderful property with a bright future,” said MGM Resorts CEO Bill Hornbuckle. Tunica is about 20 miles south of Memphis. It has a 50,000-square-foot casino and more than 1,100 hotel rooms. The Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. “This acquisition will enable us to better serve our mission of growing the Cherokee Nation’s economy, while also having a significant positive impact on the local economies we serve.”Īt the closing of the transaction, expected by the first half of 2023, MGM Resorts’ master lease agreement with VICI Properties, which currently includes the Gold Strike, will be amended to reduce annual rent by $40 million. The company last month unveiled several details of its plans for Japan if casino gambling is legalised there.“We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation,” Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said in a statement. The firm has also shown interest in the Japanese market. The US$2.9-billion MGM Cotai (pictured) is scheduled to open in 2016. It became an MGM property after the firm acquired Mandalay Resort Group in 2005.ĭan D’Arrigo, executive vice president and chief financial officer of MGM Resorts, said the company would continue to review and refine its portfolio of properties, “and focus on new developments in international and regional markets”.Īside from new projects in the U.S., MGM Resorts is currently developing its second large-scale resort in Macau. Gold Strike, which opened in 1987, hosts 400 slot machines and 10 table games, according to MGM Resorts’ statement. Last month the company announced it was selling the Railroad Pass Casino in Henderson. This is the second sale of a small casino by MGM Resorts this year. JETT Gaming is a slot machine route company that also operates two small casinos in Nevada. MGM Resorts, the parent of Macau-based casino operator MGM China Holdings Ltd, didn’t disclose terms of the sale, which still needs approval by Nevada gaming regulators. MGM Resorts International on Thursday announced that it has agreed to sell the Gold Strike Hotel and Gambling Hall and related assets to JETT Gaming LLC and Jean Ventures LLC. Newsdesk Latest News, Top of the deck, World MGM Resorts sells Gold Strike casino hotel ![]()
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