“This transaction continues to demonstrate VICI’s ability to build strong relationships with new partners while working collaboratively with existing tenants to support their strategic objectives,” VICI President and COO John Payne said in a statement. Under the deal, VICI Properties and Cherokee Nation Entertainment agreed to an initial annual base rent of $40 million for at least 25 years, with the tribal enterprise having three, 10-year lease renewal options.Ĭherokee Nation Businesses is guaranteeing the lease for the property. Prior to the onset of the pandemic in 2019, Gold Strike reported adjusted earnings of $67 million. In the 2021 calendar year, Gold Strike reported $81.1 million in net income with adjusted earnings of $115 million, a reflection of specific market factors last year. Gold Strike Tunica features a 32-story hotel tower with roughly 1,100 rooms, a conference and convention center, dining area, and 50,000-square-foot casino. “We are excited for the team at Gold Strike Tunica to join the CNE family.” “Cherokee Nation Entertainment has a rich history of operating award-winning hospitality destinations in Oklahoma, and we are proud to continue our growth in gaming and bring the level of excellence we are known for to the Tunica area,” Mark Fulton, president of Cherokee Nation Entertainment, said in a statement. The deal, which is subject to regulatory approval, is expected to close in the first half of 2023. Under the agreement, Cherokee Nation Entertainment Gaming Holdings LLC will enter into a long-term lease agreement with VICI Properties Inc., a real estate investment trust that owns the real estate. A subsidiary of Cherokee Nation Businesses will pay $450 million to purchase the Tunica, Miss.-based Gold Strike Casino Resort from operator MGM Resorts International, the company announced Thursday. Officials said income was affected by a $2 million loss in operating income attributed to the gaming subconcession process for Macau property MGM Grand Paradise, which was awarded another 10-year contract to operate in the gambling hub.TUNICA, Miss. In the same quarter one year ago, the company had a net income of $131 million, $2.77 a share, on revenue of $3.1 billion. The Las Vegas-based giant reported a net income of $284 million, a loss of $1.53 per share, on revenue of $3.6 billion for Q4. Officials said that a steady return of convention business, domestic leisure travel and encouraging results during the Lunar New Year at MGM China are set to drive “strong momentum” into the new year. Net revenues for Q4 increased by 18% to $3.6 billion, while net revenues for the whole year amounted to $13.1 billion, an increase of 36% over the full year 2021. Rent under the lease will escalate annually by 2.0%Įarlier this month, MGM reported financial results for the fourth quarter and the full year of 2022. Initial total annual rent under the lease is $40 million and the lease has an initial term of 25 years, with three 10-year tenant renewal options. VICI has also now entered into a triple-net lease agreement with CNB with respect to the real property associated with Gold Strike. Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts. The Company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. At the closing of the transaction, MGM Resorts' master lease with VICI Properties, which currently includes the Gold Strike property, will be amended to reduce the annual rent by $40 million to account for the company's sale of the operations of Gold Strike. Jonathan Halkyard, CFO & Treasurer of MGM Resorts International, added: “We plan to use the proceeds from this transaction to further fortify our balance sheet, deploy capital to growth opportunities, and return capital to shareholders.”įor the year ended December 31, 2022, Gold Strike reported net income of $47 million and EBITDAR of $98 million. I wish Gold Strike well, and firmly believe a bright future is ahead for this property.” US casino giant MGM Resorts International announced Wednesday it has closed on the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, a subsidiary of Cherokee Nation Businesses, for $450 million in cash.īill Hornbuckle, CEO & President of MGM, commented: “Gold Strike is an iconic property in Mississippi, and the employees there represent southern hospitality at its finest.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |