Bally's Corp. has agreed to purchase the Tropicana Las Vegas hotel and casino from Gaming and Leisure Properties, a publicly traded gaming-focused real estate investment trust. Bally's estimates the transaction to be valued at approximately $308 million.
The Tropicana Las Vegas, a DoubleTree by Hilton hotel and casino is located on a 35-acre parcel on the corner of Tropicana and Las Vegas boulevards. It includes 1,470 guestrooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200 seat performance theater and 100,000 square feet of convention and meeting space.
The purchase price for the Tropicana property's non-land assets is $150 million. In addition, Bally's has agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at annual rent of $10.5 million, subject to increase over time. Bally's and GLPI will also will enter into a sale-and-leaseback transaction relating to Bally's Black Hawk, Colo., and Rock Island, Ill., casino properties for a cash purchase price of $150 million payable by GLPI. The lease will have initial annual fixed rent of $12 million, subject to increase over time.
“Landing a pre-eminent spot on the Las Vegas Strip is a key step for us,” said George Papanier, president and CEO of Bally's Corp. “The Strip is visited by over 40 million players and guests per year, which we believe will significantly enhance Bally's customer base and player database, as well as unlock marketing opportunities to leverage the iconic Bally's brand. This expansion will also support the growth and development of our online and interactive business. We look forward to exploring significant redevelopment of the property, which we believe will enhance its financial profile."
The transaction is expected to close in early 2022, subject to customary real estate and working capital adjustments, receipt of required regulatory approvals and other customary closing conditions. Bally's is already licensed in Nevada as a result of the recently closed acquisition of the MontBleu Resort Casino & Spa.