A few major Las Vegas casinos traded ownership hands last year and that trend should continue through 2020. The largest gaming and entertainment companies in town are trying to free up cash. They are also trying to enhance stock prices for investors. Are you curious about how many casinos there are in Las Vegas? Well, currently there are one hundred four legal gambling establishments.
How Do We Know The Tropicana Las Vegas Could Be the First Casino to Sell in 2020?
A source close to PlaySlots4RealMoney.com, identifies The Tropicana Hotel & Casino Las Vegas as the next casino to change hands. The current owners are Penn National Gaming. This group also owns M Resort. Going back to last October, Penn National COO Jay Snowden mentioned they received some unsolicited bids. At that time, company executives claimed that plans to sell were not in the immediate future.
Insider sources paint a much different picture. There is a sense of agreement that one of those offers was accepted. One of the sources has called the sale “imminent”. The Las Vegas property is one of the most iconic casinos on the famed Strip. It was built in 1957 for $15 million. Major renovations took place in 1979, 1986 and more recently in 2011. The sale would make sense in light of recent casino transactions in one of the many gambling cities in Nevada.
MGM Resorts reached deals to sell Circus Circus and the Bellagio. Caesars Entertainment gave up its ownership interests in Rio.
Tropicana is valued at $700 million. The sale could add some much needed relief to Penn National’s long-term debt of $11 billion. The company paid $360 for the Trop back in 2015. The previous ownership group included the Onex Corp. and Alex Yemenidijan.
At the time Penn National took ownership, a $100 million expansion was part of the plan. Known as “The Shops at The New Tropicana Las Vegas”, those plans were quickly nixed. The new owners decided to focus attention on gaming operations and enhanced amenities. Two of the more popular dining and entertainment options are the Oakville Steakhouse and Trago Lounge.
The current Tropicana offers close to 1,500 rooms and suites as accommodations. Furthermore, this includes a 21-story tower that was part of the 1986 renovations. The total gaming space exceeds 50,000 square feet. One of the newest additions to an extensive lineup of dining options is Robert Irvine’s Public House. The celebrity chef opened his restaurant in 2017.
Additional amenities include boutique shops, a tropical-themed pool, waterfalls and outdoor bar and a wedding chapel.
There has been no official statement from Penn National as far as a pending sale. No potential buyer was mentioned in this report. However, in Las Vegas when there is smoke, fire will usually follow.
The sale makes sense given the owner’s current level of debt. Today’s investors are a bit wary of gaming stocks to begin with. High levels of debt does not help the cause. Adding cash and reducing financial obligations were the two biggest reasons for last year’s selling spree.
In a gambling town, betting on Trop being the first big sale of the year seems like a solid bet. There are buyers out there looking to broaden their real estate holdings. Penn National appears to be a motivated seller.