GLPI executive says Tropicana will be useful and interesting to Bally's Chicago
During the real estate company's first-quarter earnings call, Gaming and Leisure Properties (NASDAQ: GLPI ) executives said that the Tropical Garden Hotel in Las Vegas recently reached its sales deadline and that the venue will serve as Casino resort operations soon. Concept card.
The Las Vegas Strip hotel operated by Bally's (NYSE: BALY), which closed earlier this month, is expected to eventually be home to a 9-acre casino hotel on 35 acres in Oakland Construction of a new baseball stadium on Athletics grounds (A) will occur). The building is expected to implode on October 20.
I don’t think it’s a matter of closing early because of cost and expense savings, I think it’s a matter of closing on time,” GLPI Chief Operating Officer Brandon Moore said on the conference call. “Because employees in that market know the casinos To close, I think Bally's will tell you that they're having a hard time retaining enough staff to keep the program going. "
CEO Peter Carlino dismissed speculation that Tropicana is cash flow negative, noting that the venue is actually positive on that metric and that ongoing operations are "simply not part of the hotel's long-term strategy." With Bally facing financing needs in Chicago and its credit rating recently downgraded by three major credit rating agencies, some analysts have suggested the gaming company sell its rights to Las Vegas Strip casino hotels to raise cash.
Speaking of Bally's Chicago
Bally's is one of GLPI's largest tenants as the regional casino operator struggles to close an $800 million shortfall at its $1.1 billion permanent gaming site in Chicago, the company's most expensive project to date.
GLPI has previously expressed interest in acquiring the Freedom Center property where the casino-hotel is located, but Moore said in response to analyst questions that the real estate investment trust (REIT) is in talks with Bally's but is having difficulty acquiring it. Chicago market.
"If we thought Chicago was good for our shareholders and it was a good opportunity given the location and the market, I wouldn't rule it out that we would invest in it," the chief operating officer said. "I don't think we have enough information today, and I don't think we're far enough along to say whether we're definitely going to do that. But I can tell you that we're looking into it."
GLPI, based in Pennsylvania, already owns real estate for six venues in Illinois.
GLPI wants to acquire Bally’s Rhode Island property
While GLPI has not explicitly committed to backing Bally's in Chicago, the REIT has made it clear it wants to own the property at the gaming company's namesake site in Lincoln, Rhode Island. Gaming and Leisure Already owns properties associated with Bally Tiverton Casino and Hotel.
"I think this asset, Lincoln as an asset, has always been our primary asset in the area. We believe Bally's and other gaming operators view it as prime real estate in the area, and we obviously want to own it," Deputy President Steven Ladany said in response to analyst questions
Gaming and leisure properties' New England footprint includes the Tiverton site, Hollywood Hotel & Casino in Bangor, Maine, and Plainridge Park Casino in Plainville, Mass. - both owned by Penn Entertainment (Nasdaq Code: PENN) operates.
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Source: www.casino.org
