WIRE)-- Park Place Entertainment Corporation today announced Oct.
5, 2001 that it has reached an agreement to sell the Flamingo Reno
casino/hotel in downtown Reno, Nev., to RFC Reno, LLC, a subsidiary
of Capital One, LLC, anticipating sale completion within 30 days.
Park Place said
it will close the Flamingo Reno at 12 noon on Tuesday, Oct. 23.
Terms of the agreement were not disclosed. Following the sale of
the property, Park Place will focus its Reno business operations
at its Reno Hilton hotel/casino, which is marketed as both a convention
and leisure destination. Flamingo Reno guest reservations on or
after Oct. 23 will be honored at the Reno Hilton. .
carefully our operations in Reno, we have concluded that the economic
and competitive conditions there require us to concentrate our efforts
on a single property, our flagship in Reno, the Reno Hilton,'' said
Scott LaPorta, executive vice president and chief financial officer.
the necessity of this decision, but the continued challenges in
Reno, particularly the significant reductions in air service over
the last 18 months, have caused our Flamingo Reno to operate at
a loss. We have, therefore, agreed to sell the property and focus
our resources on the Reno Hilton.'' .
very pleased to re-enter the Reno market and secure a location in
the heart of the downtown casino corridor,'' said Ken Merkey, chief
executive officer of Capital One. ``Going forward, we will work
closely with city officials to explore plans that will help us develop
this asset more fully -- matters such as the relocation of the railroad
tracks, and the potential to increase parking capacity. We believe
that the permitting, planning and design phase will take several
months and are not anticipating reopening the property until improvements
is a Las Vegas-based real estate development company. Since 1993,
the company or its affiliates have specialized in re-developing
gaming properties. Its projects have included the Delta Downs Racetrack
in Vinton, La., which it sold on May 31, 2001, to Boyd Gaming for
$125 million; the Reno Ramada casino/hotel, which it remodeled and
sold to Mountaineer Racetrack Gaming Resort; and two small casinos
in Las Vegas.
Reno will change hands on October 23.
room reservations that include the night of Oct. 23 and all future
bookings will be honored at the Reno Hilton at the confirmed rate
or cancelled without penalty according to guests' preference. Park
Place also has established a transition team to work with event
planners to relocate meetings and catered functions to the Reno
1,000 people are employed at the 600-room casino/hotel. They will
be offered opportunities to apply for positions at other Park Place
resorts, including the Reno Hilton and Caesars Tahoe. The company
also will hold a job fair to assist those who seek information about
other regional employment opportunities.