Vegas Casino Sale Megathread - Las Vegas Lifestyle Forum - Las Vegas Entertainment and Living Information

So lots going on lately with casino sales. Here's the current list.

Rio: SOLD
Circus Circus: SOLD
Bellagio: SOLD
MGM Grand: For sale
Ballys: Rumored for sale
Planet Hollywood: Rumored for sale
Cosmo: Rumors they were seeking a sale, but less likely with Bellagio being sold.

Curious to see what else sells. Does this actually make the Vegas market more competitive or just more of the same. It seems like all these sales are just lease-backs. (Not the case for Circus Circus)

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09-26-2019 , 03:31 AM

MuckPls

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As far as I know neither the Bellagio or MGM is sold yet, and even if it will be sold it will be leased back to MGM. So nothing will change in that matter. I doubt that they will be selling Cosmo, the same company (Blackstone group) owns Cosmo that is going for MGM and Bellagio.

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09-26-2019 , 05:18 AM

pig4bill

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The story I saw says CET keeps the WSOP and will lease the Rio for 2 or 3 years at least. It's probably a great move for CET because they can pay off some of their high-interest debt and probably operate the casino at a higher margin.

It probably also means the WSOP isn't going anywhere for awhile.

edit: Also, the Rio is the only one on that list that actually sold. All the rest are still just rumors.

Last edited by pig4bill; 09-26-2019 at 05:43 AM.

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09-26-2019 , 08:05 AM

Da_Nit

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Quote:

Originally Posted by SenatorKevin

So lots going on lately with casino sales. Here's the current list.

Rio: SOLD

Circus Circus: SOLD

Bellagio: SOLD

MGM Grand: For sale

Ballys: Rumored for sale

Planet Hollywood: Rumored for sale

Cosmo: Rumors they were seeking a sale, but less likely with Bellagio being sold.

Curious to see what else sells. Does this actually make the Vegas market more competitive or just more of the same. It seems like all these sales are just lease-backs. (Not the case for Circus Circus)

Who bought the Bellagio?

Also I thought CET is in the process of being bought by Eldorado?

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09-26-2019 , 12:06 PM

DaveC95818

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1st Rule of Business: Everything is for Sale.

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09-26-2019 , 12:27 PM

MuckPls

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Join Date: Sep 2015 Posts: 1,985

Quote:

Originally Posted by Da_Nit

Who bought the Bellagio?

Also I thought CET is in the process of being bought by Eldorado?

Nobody bought the Bellagio, Blackstone (who owns Cosmopolitan) is in discussions to buy both Bellagio and MGM and lease it back to MGM resorts.

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09-26-2019 , 01:47 PM

pig4bill

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Most of these rumors are from back in April, so not exactly news.

Circus Circus is the only one that would actually change hands, and you can bet Ruffin will bend MGM over, just like he did when he bought Treasure Island.

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09-26-2019 , 02:25 PM

michelle227

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Quote:

Originally Posted by Da_Nit

Also I thought CET is in the process of being bought by Eldorado?

There are a lot of assets in that CET portfolio that Eldorado has no interest in keeping...

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09-26-2019 , 03:22 PM

NTellier85

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Quote:

Originally Posted by SenatorKevin

So lots going on lately with casino sales. Here's the current list.

Rio: SOLD
Circus Circus: RUMORS
Bellagio: RUMORS
MGM Grand: RUMORS
Ballys: RUMORS
Planet Hollywood: RUMORS
Cosmo: RUMORS

Fixed your post.

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09-26-2019 , 03:38 PM

#10

Da_Nit

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Quote:

Originally Posted by NTellier85

Fixed your post.

Rio has been sold and it looks Phil Ruffin is in the process of buying CC but yeah others are just rumors.

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09-26-2019 , 03:42 PM

#11

Gzesh

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Originally Posted by NTellier85

Fixed your post.

Same as it ever was ....

I wonder whether WRT is going to bid on one or more of those properties properties for his Poker Hotel project.

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09-26-2019 , 03:46 PM

#12

Gzesh

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Originally Posted by Da_Nit

Rio has been sold and it looks Phil Ruffin is in the process of buying CC but yeah others are just rumors.

Circus Circus has a LOT of acreage for any deal ... Ruffin in the past has considered Strip acreage "irreplaceable".

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09-26-2019 , 07:09 PM

#13

dth123451

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Strip Casinos probably sell at a 5% cap rate, MGM junk debt has to yield significantly more. Seems like a no brainer for MGM, except they then have even less incentive to invest in property improvements.

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09-26-2019 , 07:19 PM

#14

John Mehaffey

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OP is inaccurate in several ways. Circus Circus has definitely not sold. The MGMs are REIT leaseback deals under negotiation.

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09-27-2019 , 01:31 AM

#15

SenatorKevin

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Circus Circus is actually a pretty decent cash cow for MGM. Shocking.

Blackstone was shopping Cosmo, that's unlikely to change hands.

Either way, things are changing unlike the mid 2000s when things consolidated big time.

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09-27-2019 , 01:32 AM

#16

SenatorKevin

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Quote:

Originally Posted by Gzesh

Circus Circus has a LOT of acreage for any deal ... Ruffin in the past has considered Strip acreage "irreplaceable".

If Resort World actually opens, there will be a lot more foot traffic near that property.

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09-27-2019 , 02:27 AM

#17

parisron

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Originally Posted by SenatorKevin

Circus Circus is actually a pretty decent cash cow for MGM. Shocking.

Even after all the incidents and arrests there to do with murder and other things. Also there was a roller coaster accident.

Just google "circus circus casino arrest" and see the list.

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09-27-2019 , 01:47 PM

#18

Da_Nit

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Originally Posted by SenatorKevin

There income level is really quite small compared to other properties. Maybe it’s a cash cow in that it’s one of the better from a profitability standpoint and requires little to no investment or management oversight.

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09-27-2019 , 02:42 PM

#19

mopace

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MGM is raising cash to build properties in Asia. To quickly raise cash it uses the leaseback on its properties while maintaining 51% control. Nothing to see here just accounting tricks

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09-27-2019 , 06:06 PM

#20

dth123451

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Lol “adjusted EBITDA.” Walking around MGM properties, it is very apparent depreciation is a real economic cost...

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09-28-2019 , 10:24 PM

#21

SenatorKevin

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Originally Posted by Da_Nit

I mean have you seen that place lately? It's a miracle it even generates some revenue let alone actual profits... but yes relative to other properties the total cash contribution is relatively muted.

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10-16-2019 , 12:44 AM

#22

SenatorKevin

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Bellagio and Circus Circus sales finally officially announced today.

MGM will pay $245 million a year to rent Bellagio from Blackstone.

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10-16-2019 , 12:50 AM

#23

Da_Nit

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Originally Posted by SenatorKevin

Bellagio and Circus Circus sales finally officially announced today.

MGM will pay $245 million a year to rent Bellagio from Blackstone.

Circus Circus is an actual sale not like the lease back on the B. Circus property sells for nearly a $1B, guess not all that much for about 100 acres of strip land. North Strip might see some serious changes if they can complete before the next economic crash.

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10-16-2019 , 01:09 AM

#24

parisron

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MGM Resorts sells Circus Circus, Bellagio on Las Vegas Strip

"The Las Vegas-based company said it is selling the Circus Circus hotel-casino for $825 million to Treasure Island casino owner Phil Ruffin. The company also sold the Bellagio for $4.25 billion."

https://www.washingtonpost.com/busin...199_story.html