Issue 172
Dec. 29, 2003 - Jan. 4, 2004
Volume 3
page 2
 

Park Place to sell Las Vegas Hilton to Colony Capital

LAS VEGAS--Park Place Entertainment Corporation has entered into a definitive agreement to sell the Las Vegas Hilton to an affiliate of Colony Capital, LLC, a Los Angeles based international private investment firm, for approximately $280 million. The transaction is expected to close by the end of the second quarter of 2004 and is subject to customary closing conditions outlined in the purchase agreement.

"The Las Vegas Hilton has been a longstanding and distinguished member of the Park Place family, and it has a legendary place in the history of Las Vegas," said Park Place President and Chief Executive Officer Wallace R. Barr.

"However, as we move forward, the company's strategy is to focus on core assets. In Las Vegas, those assets are Caesars Palace, Bally's, Paris and the Flamingo - all located at the key intersection of Flamingo Road and the Las Vegas Strip. Divesting the Las Vegas Hilton allows us to concentrate on and reinvest in those assets while continuing to reduce our overall level of indebtedness," Barr added.

"The hotel-casino and the prime real estate on which it sits are truly irreplaceable assets," said Thomas J. Barrack, Jr., Chairman and CEO of Colony Capital. "We look forward to this opportunity to further enhance and reposition the property."

Under the terms of the agreement, Colony will purchase all the assets of the Las Vegas Hilton Hotel and Casino, and will assume certain related current liabilities. The aggregate consideration may be adjusted for changes in net working capital.

Colony expects to enter into an agreement with Hilton Hotels Corporation pursuant to which the hotel will continue to use the Hilton brand. The firm intends to continue the operation of the property as a hotel-casino, and may construct additional facilities on land that is currently unused. Colony, one of the few private investment firms licensed in gaming, owns Resorts International in Atlantic City and is a partner in Accor Casinos in Europe. Nicholas Ribis, vice chairman of Resorts, will be a partner in the Las Vegas Hilton acquisition.

Park Place intends to use the net proceeds from the sale - estimated at $265 million after taxes - to reduce borrowings under its revolving credit facilities. The company expects to report a gain on sale of approximately $85 million after taxes, or $0.28 per diluted share, in the quarter in which the transaction closes. Until the sale is completed, the Las Vegas Hilton will be accounted for as an asset held for sale.

 

 

 


Seminoles up the ante with Hard Rock casino complex
As reported by The Associated Press

HOLLYWOOD, Fla. - The multibillion-dollar American Indian gambling industry had its start on a run-down stretch of State Road 7 more than two decades ago. Today, the Seminole Tribe of Florida's original high-stakes bingo hall is still there, but the squat, nondescript building looks like a relic from the past.

Just down the road, the tribe sees its future in the massive Seminole Hard Rock Hotel & Casino under construction, a flashy Las Vegas-style complex. Officials expect it and a sister complex in Tampa to more than triple annual gambling revenues to around $1 billion when they open early next year.

The Hollywood complex will be the bigger of the two. It will have 130,000 square feet of casino space, a Hard Rock Cafe, a bar with 42 suspended plasma screen televisions, a spa and a 6,000-seat arena for concerts, among other features. It also will have 300,000 square feet of retail space and restaurants.

The 15-story, 500-room hotel will charge about $150 a night for average rooms. Allen said they already have tentative commitments for 60,000 room-nights, or enough to fill the hotel for four months.

The two Seminole complexes are expected to draw more than 20,000 visitors a day, have $700 million in annual revenues and create 6,000 full-time jobs for Indians and non-Indians, tribal officials said.

"It's going to be a pure economic engine," said Max Osceola, the Hollywood representative on the tribal council.

Illusionist returns to Vegas
for rehabilitation

Illusionist Roy Horn of "Siegfried & Roy" returned to his home to continue his rehabilitation under the care of a team of doctors and therapists. Horn spokesman Dave Kirvin said the magician arrived the afternoon of Dec. 22 from UCLA Medical Centre in Los Angeles, where he was treated after being mauled by a 300-pound (135-kilogram) white tiger on Oct. 3.

Kirvin declined to discuss the 59-year-old Horn's condition. Horn had been moved to UCLA Medical Centre on Oct. 28 after initially being hospitalized in Las Vegas. Doctors have released few details since the tiger attacked Horn during a sold-out performance at The Mirage hotel-casino.

Mamma Mia!
Bette Midler

Mohegan Sun: Bette Midler, one of the world's best-loved and most versatile entertainers, performs at the Mohegan Sun Arena.

 

Date: December 31 and January 1

Price: From $75

Time: Wed 9:30pm and Thu 7:00pm

 

For more information please call: (800) 477-6849

 
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