Barry’s Buys Tropicana Hotel on the Las Vegas Strip for $ 308 Million

Las Vegas (AP) — The Tropicana Las Vegas Hotel and Casino of the same name in Sin City is being sold to new entrants to Las Vegas Boulevard Resort owners.

Bally’s Corp based in Rhode Island. Is Tuesday, Gaming and Leisure Properties Inc. Announced that it will acquire the iconic Strip property for about $ 308 million.

The contract for the approximately 1,500-room hotel, casino, theater and convention facility also includes sale-and-leaseback transactions related to casino facilities in Barry’s Blackhawk, Colorado and Rock Island, Illinois, the company said.

“Landing in a prominent place on the Las Vegas Strip is an important step for us,” said George Papanier, President and CEO of Barry’s, in a statement.

Bally’s Corp. does not own Bally’s Las Vegas on the Strip. The 2,800-room property on Flamingo Road is owned and operated by Caesars Entertainment.

Papanier said Las Vegas is visited by more than 40 million tourists annually, and owning Tropicana enhances Barry’s customer and player database, expands marketing opportunities and benefits Barry’s online and interactive business. Said it would be brought.

The transaction is expected to close early next year. According to Barry’s, Tropicana’s non-land assets were priced at $ 150 million. Barry plans to lease the underlying land of Tropicana’s real estate from Gaming and Leisure Properties for the first 50 years for an annual rent of $ 10.5 million.

Gaming and Leisure Properties paid $ 150 million for sale and leaseback transactions related to Barry’s Blackhawk and Rock Island, with an initial fixed annual rent of $ 12 million.

Barry’s owns and manages 12 casinos in eight states, including Barry’s Atlantic City, New Jersey, and will own and manage 15 casinos in 11 states after several acquisitions are completed. Said.

Tropicana Atlantic City is owned by Caesars Entertainment.

Barry’s is already licensed as a Nevada casino operator. Earlier this month I bought a Montblue Resort near Lake Tahoe from Caesars.

Tropicana Las Vegas opened in April 1957. At the intersection of Las Vegas Boulevard, on a 35-acre (14-hectare) plot, there are two towers on the 22nd and 21st floors, with the boulevard named after it. The hotel has recently been operated as DoubleTree by Hilton.

The property was purchased by Penn National Gaming in 2015 for $ 360 million, and last year Penn sold the land occupied by Tropicana to spin-off company Gaming and Leisure Property for a rent of $ 337.5 million. did.