The LINQ Promenade is set to change hands.
Caesars Entertainment will sell the LINQ Promenade to real estate investors for $275 million.
The sale is a joint venture between TPG Real Estate and Acadia Realty Trust's Investment Management Platform. Caesars officials noted that the sale should be finalized in the fourth quarter of 2024, pending customary approvals and closing conditions.
The Promenade is a shopping and dining attraction between the Flamingo Las Vegas and Caesars’ LINQ Hotel + Experience on the Las Vegas Strip. A Caesars spokesperson said the sale won't affect the hotel-casino or the iconic High Roller attraction.
“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals,” Tom Reeg, CEO of Caesars Entertainment, said in a statement released by the company.
Caesars' Revenue Report is Mixed
That announcement came at the beginning of Caesars Entertainment's third-quarter earnings call, which contained some good news and some less good news.
The company generated GAAP net revenues of $2.9 billion, slightly down from $3.0 billion in the same quarter of the previous year.
Caesars reported a GAAP (Generally Accepted Accounting Principles) net loss of $9 million, a significant decrease from the net income of $74 million earned in the prior year's comparable period. However, the company's same-store Adjusted EBITDA remained steady at $1.0 billion, matching last year's figures.
Additionally, Caesars Digital showed significant growth, with an Adjusted EBITDA of $52 million, up from just $2 million in the same quarter of the previous year.
Revenue Table Tells the Story
As you can see by the year-over-year comparison below, revenue was down slightly, nearly across the board. The only facet of business to break the trending higher was Caesars Digital.
“Regional segment operating results were negatively impacted by new competition, construction disruption and difficult comparisons versus the prior year,” says Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc. “Caesars Digital set a new all-time quarterly record for Adjusted EBITDA driven by over 40% growth in net revenues,” he said.
WSOP Sale Update Also Announced
Chief Financial Officer Bret Yunker also announced the completion of the sale of the World Series of Poker brand. The company received $250 million in cash from the sale of the WSOP. Caesars sold it to NSUS Group Inc., known for launching the online poker room GGPoker.
As part of this transaction, Caesars has obtained the rights from NSUS to host the WSOP's premier live tournament series at its Las Vegas casinos for the next 20 years.
Caesars’ Casino Projects Almost Finished
Caesars is close to completing multi-year renovation projects at Caesars New Orleans and the permanent development at Caesars Virginia.
Following a $435 million overhaul, the rebranded Caesars New Orleans reopened with new restaurants, a new bar with a $750,000 chandelier, a renovated sportsbook, and a redesigned gaming floor. It’s on the site of the old Harrah’s casino.
The $750 million Caesars Virginia casino resort, located about 45 minutes from Greensboro, is set to open in December. During construction, the temporary Danville Casino is operational. Once complete, the resort will feature a full-service spa, a pool, upscale bars and lounges, and various dining options. It will also provide access to a sportsbook.
