Gold Strike opened in 1994 and was acquired by MGM in 2005., and is located about 30 minutes from downtown Memphis. “We are pleased to welcome Cherokee Nation Businesses as our ninth gaming tenant.” John Payne, President and COO of VICI Properties. “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 goals,” he added. “We appreciate VICI working constructively with CNE to facilitate a new lease.” “This is a great result for the company as we can reprioritize future capital expenditures towards opportunities that will improve the customer experience at our other locations.” said Jonathan Halkyard, MGM’s chief financial officer and treasurer.
The company expects estimated net cash proceeds after taxes and fees to be “approximately $350 million.” – and dedicate more time and resources to continue driving success at that world’s leading casino and resort,” Hornbuckle explained As for the new move.īeau Rivage, MGM's second property in the stateįor the twelve months ended December 31, 2021, Gold Strike reported net income of $81.1 million and Adjusted Property EBITDAR of $115 million., which MGM says reflects “the benefits of certain market-specific factors in the past year.” Before the 2019 pandemic, the venue reported Adjusted Property EBITDAR of $67 million.Īt the closing of the announced transaction, MGM Resorts’ master lease agreement with real estate investment fund VICI Properties Inc., which currently includes Gold Strike, “will be amended to reduce annual rent by $40 million.” declared MGM.
“ Strategically, however, we decided to narrow our Mississippi focus to just one resort: Beau Rivage.
“Gold Strike is a wonderful property with a bright future ahead of it.” Bill Hornbuckle, CEO and President of MGM Resorts International. “I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests,” he said. The deal, which is subject to regulatory approvals and other customary closing conditions, expected to close in the first half of 2023. The operations will be acquired by Cherokee Nation Entertainment Gaming.a subsidiary of Cherokee Nation Business.Īccording to a press release, purchase price represents an approximate multiple of 11 times 2019-2021 property average Adjusted EBITDA. Latham Watkins, along with Scale LLP, served as legal advisors and Jones Walker served as special gaming counsel.Hospitality and entertainment giant MGM Resorts International announced Thursday an agreement to sell the operations of the Gold Strike casino and resort in Tunica, Mississippi, for $450 million in cash. The transaction is subject to regulatory approvals and other customary closing conditions.ĬBRE Securities served as exclusive strategic and financial advisor to Cherokee Nation Businesses in connection with the transaction. “This acquisition will enable us to better serve our mission of growing Cherokee Nation’s economy while also having a significant positive impact on the local economies we serve.” “We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation,” said Chuck Garrett, chief executive officer of Cherokee Nation Businesses. Gold Strike features more than 1,100 oversized luxury guest rooms including 125 suites the 50,000-square-foot casino includes a sportsbook high-limit gaming area conference and convention center and award-winning dining options. The property features a 32-story hotel tower that has become one of the most recognizable buildings in Tunica. Gold Strike is located on the Mississippi River in Tunica, approximately 30 minutes from downtown Memphis. “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,” said Mark Fulton, president of Cherokee Nation Entertainment (CNE). (NYSE: VICI), the Gold Strike property owner. CNE Gaming Holdings, LLC, will enter into a long-term lease agreement with VICI Properties Inc. The purchase price represents an EBITDA multiple of approximately six times, based on 2021 Adjusted Property EDITBAR of $115 million. – Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses, today announced it has reached an agreement with MGM Resorts International (NYSE: MGM) to purchase the operations of Gold Strike Tunica for $450 million in cash, subject to customary adjustments.
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