Advertisement 1

Onex Corp to sell Tropicana Las Vegas for US$360 million to Penn National Gaming

Penn National Gaming Inc., an operator of casinos and racetracks, agreed to buy the Tropicana Las Vegas Casino Hotel Resort for US$360 million, giving the company its first property on the Strip

Article content

Penn National Gaming Inc., an operator of casinos and racetracks, agreed to buy the Tropicana Las Vegas Casino Hotel Resort for US$360 million, giving the company its first property on the Strip.

Penn National, based in Wyomissing, Pennsylvania, will use cash on hand and an expansion of its credit lines to buy Tropicana from Onex Corp., a Toronto-based private equity firm, according to a statement Wednesday.

Advertisement 2
Story continues below
Article content

The deal gives Penn National a property on the Strip with a 50,000-square-foot casino, three restaurants and almost 1,500 guest rooms. Penn National has been on the hunt for acquisitions after it split into two public companies in 2013 and placed most of its properties into a real estate investment trust.

Article content

The company is making its debut on the Strip at an uncertain time for growth. Gambling in Las Vegas — the largest betting hub in the U.S. — shrank by 2.1 per cent to US$6.37 billion last year, halting a four-year recovery.

Penn National said Wednesday it will invest US$20 million to improve facilities at the Tropicana and will evaluate other moves, such as expanding retail and restaurant space.

Shares of Penn National fell 0.7 per cent to US$16.65 at 10:14 a.m. in New York. The stock had gained 22 per cent this year through Tuesday’s close.

Bloomberg.com

Article content
Comments
You must be logged in to join the discussion or read more comments.
Join the Conversation

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

This Week in Flyers