Sale of Tropicana Las Vegas Reportedly Imminent

What better way to start another year of casino news than with a big fat Las Vegas scoop. One of the world’s biggest casino hubs is always awake and alive, and so is its rumor mill.

The latest gossip churned out by that never-sleeping buzz machine claims that Tropicana Las Vegas could be the first Vegas casino resort to be sold this year amid ongoing consolidation in the US casino industry.

This latest scoop was generously shared by our favorite Vegas-related blog Vital Vegas.

Originally opened in the spring of 1957, Tropicana Las Vegas is one of the oldest properties to be gracing the Strip skyline. In 2015, the hotel and casino resort was purchased by Pennsylvania-headquartered casino operator Penn National Gaming.

Company executives said during Penn National’s third-quarter earnings call this past November that they had received several unsolicited offers for the 1,400-room property and that they were evaluating those and would continue to engage in potential sale conversations.

However, they noted that a sale of the property was not imminent at the time, even though they were encouraged by some of the conversations and bids received.

A sale of Tropicana Las Vegas could help Penn National reduce a behemoth debt way faster. And while the property’s sale was not imminent about two months ago, it now seems that conversations might have quickly led up to Penn National offloading its Strip hotel and casino resort.

Sale Now Seems Imminent

According to Vital Vegas, Penn National has accepted one of the offers it had received and that a transaction is now under way. According to sources, the property’s purchase price will likely be in the $700 million region.

Penn National acquired Tropicana Las Vegas for $360 million back in the summer of 2015, so selling it for $700 million or more would be a nice profit.

If the rumor proves true, the sale of Tropicana Las Vegas could be the first major Strip deal to be announced this year.

In addition, it should also be noted that the transaction would continue the trend of major casino operators capitalizing on the sale of high-profile Las Vegas properties. Three such deals were announced in the final months of 2019.

Las Vegas gaming and hospitality giant MGM Resorts International agreed to offload its iconic Bellagio resort in a $4.2 billion leaseback deal that will see New York investor The Blackstone Group assume ownership of the property.

Separately, MGM sold Circus Circus for $825 million to billionaire businessman Phil Ruffin, who also owns Treasure Island.

Last but not least, after nearly a decade of continued rumors, Caesars Entertainment Corp. finally announced the sale of Rio All-Suite Hotel & Casino. A company affiliated with Dreamscape Companies bought the resort for $516.3 million. The deal closed late last year.

Source: Tropicana Looks to Be First Las Vegas Casino Sale of 2020

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