The largest casino company Caesars Entertainment Inc. still plans to sell one of its eight resorts on the Las Vegas Strip, but is in no rush to do so now.
Instead, the company decided to wait until the market recovers from a difficult period caused by the coronavirus pandemic. The worst global health crisis in years has caused months-long entertainment shutdowns around the world.
The pandemic response has crippled the casino industry in Las Vegas, but the situation has now begun to return to relative normalcy. Three city casino resorts were allowed to resume operations 100%:
- The Cosmopolitan.
It is expected that this will be followed by the opening of other gambling establishments. Nevada Governor Steve Sisolak has announced plans to allow Nevada to resume operations 100% by June 1.
Caesars has been planning to sell one of its assets on the Strip since its merger with Eldorado Resorts was first announced in the summer of 2019.
However, CEO Tom Reeg recently stated:
We are convinced that it makes no sense for us to sell an asset until we can sell it for as much as we expect to do it.
The head of the company also noted that the sale could take place in 2022. It is not yet known what property the company wants to withdraw from its portfolio. Its merger with Eldorado last year created the largest casino operator in the United States by number of properties, with more than 60 gaming and entertainment complexes across the country.
Applicants for the purchase
The San Manuel Indian tribe scouted the Caesars Strip property before announcing an agreement to buy Fertitta’s Palms Casino Resort from Red Rock Resorts in a $ 650 million deal that will close later this year.
California-based tribal chief executive Laurens Vosloo did not say what property they were interested in buying prior to the Palms acquisition.
Caesars posted a net loss of $ 423 million in the first quarter of the year and generated revenue of $ 1.7 billion. In Las Vegas, revenue fell just over 39% to $ 497 million in the three months ended March 31, 2021.
However, the company expects the business to improve performance over the course of the year. During the telephone conversation, Mr Rig said:
The above numbers do not reflect the situation in this quarter as we had Illinois and Pennsylvania still closed at the beginning of the first quarter of the year.
Occupancy rates for the company’s Las Vegas facilities have grown in the past few months, reaching 84% in April. Caesars also noted that the weekend rooms have been redeemed for the foreseeable future.