"This is a great outcome for the company as we are able to reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations," said Jonathan Halkyard, CFO & Treasurer, MGM. The company expects net cash proceeds after taxes and estimated fees to be “approximately $350 million.” “ Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino,” explained Hornbuckle in regards to the new move.īeau Rivage, MGM's second property in the stateįor the twelve months ended December 31, 2021, Gold Strike reported a net income of $81.1 million and Adjusted Property EBITDAR of $115 million, which MGM says reflects “benefits from certain market-specific factors in the last year.” In pre-pandemic 2019, the venue reported Adjusted Property EBITDAR of $67 million.Īt the closing of the announced transaction, MGM Resorts’ master lease agreement with real estate investment fund VICI Properties Inc., which currently includes Gold Strike, “will be amended to reduce annual rent by $40 million,” MGM stated. "Gold Strike is a wonderful property with a bright future ahead.” "I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests," said Bill Hornbuckle, CEO & President, MGM Resorts International.
The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the first half of 2023.
The operations are to be acquired by Cherokee Nation Entertainment Gaming, a subsidiary of Cherokee Nation Businesses.Īccording to a press release, the purchase price represents an approximate 11 times multiple on average Adjusted Property EBITDA from 2019-2021. Hospitality and entertainment giant MGM Resorts International announced on Thursday an agreement to sell the operations of the Gold Strike casino and resort in Tunica, Mississippi, for $450 million in cash.
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