Operator News
US – JACK Entertainment sells Greektown Casino Hotel
By Phil - 28 May 2019
JACK Entertainment has sold Greektown Casino-Hotel for $1bn cash to Penn National Gaming and VICI Properties, an experiential real estate investment trust, has been completed.
Under the terms of the agreements, VICI acquired the land and real estate assets of Greektown Casino Hotel and simultaneously entered into a favorable triple-net leased fee agreement with Penn National, who will be responsible for the operations at the property.
Timothy J. Wilmott, Penn National’s Chief Executive Officer, said: “We are pleased to be entering one of the nation’s largest regional gaming markets, and to be operating the only casino in the heart of the revitalized downtown Detroit area. We look forward to welcoming patrons from high profile nearby attractions, such as Comerica Park, Ford Field, Little Caesars Arena, the city’s theater district, GM’s Renaissance Center and the Cobo Conference Center. We’re also excited to be adding the largest single property customer database to mychoice, our soon-to-be re-launched and enhanced player loyalty program.
“Our expanded scale will allow us to generate synergies over the first six quarters of operations, at which time we anticipate an OpCo purchase multiple of 6.3x projected annual run-rate adjusted EBITDA. With the expected increase to our free cash flow per share, we will remain well positioned to reduce lease-adjusted net leverage to 5.0x to 5.5x by the end of next year.”
Opened in 2000, Greektown Casino-Hotel features 100,000 square feet of casino space, approximately 2,700 gaming machines and 60 table games, a poker room, three restaurants, seven fast casual food outlets, four bars and a coffee shop. In addition, the casino boasts a AAA Four Diamond 400-room, luxury high-rise hotel with 14,000 square feet of event and catering space. The property employs approximately 1,700 team members and has partnered with nearly 20 local restaurants to offer fine dining rewards to guests. The Greektown property will be included in the Company’s Northeast reporting segment for financial reporting purposes.
“We are pleased to welcome Penn National and VICI to Detroit as they add Greektown Casino Hotel to their robust gaming portfolios,” said Matt Cullen, Chief Executive Officer of JACK Entertainment. “We are confident that Penn National, an operator known for its excellent culture and leadership, will be a great addition to this city and further Greektown Casino Hotel’s success, elevating the property to reach new levels of growth.”
JACK Entertainment and Penn National will work closely together to ensure a smooth transition for all guests and team members.
“We would like to express our sincere gratitude to the Greektown Casino Hotel team members and management for their unwavering commitment to delivering exceptional guest service over the last six years,” said Cullen. “Greektown Casino Hotel’s success is a true testament to their hard work and dedication, and we know they will continue to thrive under Penn National’s leadership.”
