US – Caesars sets 90 per cent target for Las Vegas room renovationBy Phil - 2 November 2017
Caesars Entertainment has promised to invest significantly to upgrade and renovate its Las Vegas casinos.
The operator has already completed $100m renovations at Caesars Palace and Planet Hollywood and is currently renovating 950 rooms at the Carnaval Tower North at Harrah’s Las Vegas, and 1,270 rooms at the Flamingo Las Vegas.
By the end of the year, Caesars hopes to have renovated almost 12,000 rooms in Las Vegas, equating to half of its Las Vegas rooms total since 2014, with plans to complete nearly 90 per cent in the next few years.
CEO Mark Frissora said: “We’re building a 300,000-square-foot convention facility on the Las Vegas strip to accommodate more mid-size business meetings, behind The LINQ and near the Flamingo and Harrah’s, We’re also exploring opportunities to develop other large, commercial scale properties we own adjacent to the Las Vegas Strip to create exciting new destinations for Las Vegas visitors and locals. In addition, we’re investing in new technology to delight our guests with more convenient features throughout their stays with us, such as check-in kiosks, mobile concierge services and mobile pay options.”
The news followed a strong quarter for the Las Vegas based operator.
Mr. Frissora said: “Revenue growth accelerated in the third quarter, led by a 10.4 per cent improvement in Caesars Palace gaming revenue. Despite $10 to15m of unfavorable year-over-year hold, our GAAP operating income and enterprise-wide adjusted EBITDA margins improved to 8.7 per cent and 29.2 per cent, respectively, supported by increased gaming volume across our domestic properties, solid hospitality performance, and improved labour productivity.
“We were also pleased to have completed the restructuring of CEOC and merger with CAC on October 6, simplifying our business and allowing us to turn our full attention to our growth initiatives,” Mr. Frissora added. “Our future appears bright with a much improved balance sheet, approximately $2bn in cash, and strong free cash flow. We are well positioned to continue to invest in our core business and pursue a more diversified growth strategy.”
Caesars Entertainment Corporation (CEC) is split into Caesars Entertainment Resort Properties (CERP) and Caesars Growth Partners (CGP).
CERP owns six casinos in the United States and The LINQ promenade, along with leasing Octavius Tower at Caesars Palace Las Vegas to CEOC and gaming space at The LINQ promenade to CGP.
CGP owns six casinos in the United States, primarily in Las Vegas, as well as CIE. CIE owns and operates regulated online real money gaming and the WSOP tournaments and brand.