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Eldorado Resorts - $18 billion cash and stock deal for Caesars

Discussion in 'Casino Industry & Development' started by azmetfan1, Jun 23, 2019.

  1. Burnsie

    Burnsie High-Roller

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    "We are not announcing any changes to our network at this time" = not today but damn right they're coming. It's just a matter of who, when, and where.

    I'd be happy if they add Trop AC to their Caesars Rewards offerings in AC. I like that property but haven't been there ever since I started getting better offers from CET.
     
    • Agree Agree x 5
  2. stlguy197239

    stlguy197239 High-Roller

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    I don't think there is anyway they sell the Linq (in the middle) and keep Harrah's and Flamingo (on either side). Those three are connected with the Promenade and the little bar/seating area between Harrahs and the Linq. You might be able to convince me that they would talk about selling the Cromwell but it is not big enough to matter in the long run to their debt and Drai's is still a popular nightclub on the strip and that means money. PHO, on the other hand, is basically a solo property not connected to any other CET locations physically. Of the other three, I would think Harrah's is the one most likely to be sold off but I don't think that happens. They can help reduce their debt by selling Rio and PHO to start with and then see where they land. They are also going to get some help with that when they are forced to sell casinos in other cities.
     
    2nd Solo Trip in 2019
    • Agree Agree x 2
  3. DJ Ran

    DJ Ran High-Roller

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    It will be interesting to see how it all plays out. It's always good to have a second home base established should the worst happen. I know I'm in the minority here when I say I really hope they overhaul the Rewards Program and stop all the tier matching and the giving away of their best perks. They also need to be another tier level between Diamond and Seven Stars. The gap between the 2 is just too huge.
     
    • Agree Agree x 3
  4. VPDeuces

    VPDeuces Low-Roller

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    You’re forgetting the elegant Casino Royale (Best Western)! Home of the cheap Corona, or something like that. And White Castle.
     
  5. stlguy197239

    stlguy197239 High-Roller

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    The rewards program here in STL for River City Casino, the difference between the 2nd and 3rd levels is 2000 points to 18000. Getting 2000 in a year is pretty easy, but I have never even got to 5000 points in a year let alone 18000.
     
    2nd Solo Trip in 2019
  6. IxAccDnf

    IxAccDnf VIP Whale

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    goodbye Caesars line hello William Hill
     
  7. The Rumor

    The Rumor VIP Whale

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    Circa is barely a billion dollar project, Cosmo would be at least 3 times that, realistically.
     
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  8. The Rumor

    The Rumor VIP Whale

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    I don't see that at all - why on earth would they sell something right in the middle of that Harrahs/Linq/Flamingo/Cromwell/Ballys/Paris to CP bloc? That makes no sense. It also fills a real niche at CET (it's the boutique brand.) Plus it is small enough that it doesn't help you deleverage all that much, which would be the point of selling something on the Strip.
     
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  9. The Rumor

    The Rumor VIP Whale

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    This makes no sense. Why would you sell Linq and Cromwell, which are right in the middle of your other properties? They want the captive audience. Why on earth would they sell off their future like that?

    Given the sale of the land under 3 casinos, plus the potential sale price of PH and required regional sales for anti-trust reasons...what rationale to they have to "need" to sell a good asset like the Linq or the Cromwell in the middle of their footprint? It doesn't make sense. They aren't going to sell the Linq.

    The better rationale, IMO, is saying "why do I need PH when I have the Linq," not "let's sell everywhere that people under age 40 stay." They want to be able to reach those customers both to make money on them now, but also to turn them into Harrahs, Caesars, Paris, etc. customers in the future.
     
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  10. The Rumor

    The Rumor VIP Whale

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    Bingo.

    Eldorado is selling 3 MO/EV casinos for $385 M. They received another $3.2 B from VICI. Surely they have a few hundred other million of asset sales to go in places like Reno/Tahoe, Louisiana, and NJ. Stack a 10 figure price on that for PH, a token amount for Rio, and you've gotten back a lot of the cash ($8.6 B or whatever) that they are paying out to CET shareholders. Plus they could always decide to sell a couple of other regional casinos if they feel the price is right.

    Some analyst is surely running the numbers, but it seems like they aren't going to be leveraged to the point that they would desperately need to sell Ballys/Paris or Harrahs.
     
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  11. The Rumor

    The Rumor VIP Whale

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    This is a very interesting piece of this to me...good point! I wonder if CET won't have its own lines anymore.
     
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  12. stlguy197239

    stlguy197239 High-Roller

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    Oh yeah, I forgot they just announced they are selling the two Isle of Capri casinos in southern Missouri. That makes sense, especially with the news yesterday, and they will now have the much bigger Harrahs in Metropolis.
     
    2nd Solo Trip in 2019
  13. waverunner

    waverunner ------VEGA$------

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    Paris/Bally's will never be sold
    I would love for Eldorado/Caesars to keep LinQ and Cromwell. I have stayed at LinQ twice going back to the 80's with Imperial Palace where i have stayed many times, including the Capri. Cromwell is my second choice (after Paris), to spend most of my gambling money. Was just there a few days ago.
    If they only sell PHO and Rio i'm fine with that. Heck, if the add Harrah's to the list i'm also fine with that.
    Having bookends from Paris up the the LinQ on the East side makes a lot of sense, you still have the Mid Strip at Flamingo and LV Blvds ruled by Caesars/Eldorado.
    I guess time will tell.
     
  14. vetsen

    vetsen Low-Roller

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    Those aren't AAA, and NY population base is very different from Vegas. However, Denver had a AAA team which moved when they got the Rockies.
     
  15. Grid

    Grid Well-Known Member

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    It wont cost $30K per room to fix them up. $5K, in bulk seems about right. There is money to be made, CET just has to come off their asking price. Michael Fascitelli takes it off theri hands for $225MIL. Dumps $75MIL into the rooms, the common areas and just refreshes the joint. And there is money to be made in fixing the old girl up

    Price per unit (room) on a 1,000 room property (it becomes less as you do more rooms)

    1. Economy $2500
    2. Midscale $3700
    3. Extended Stay $4600
    4. Upscale $6500
    5. High Upscale $8500
    6. Luxury $12000
    • Interior designer fees
    • General contractor
    • Wall coverings
    • Floor coverings
    • Window treatments
    • Bedding
    • Towels and shower curtains
    • Art
    • Furniture
    • Fixtures
    • Technology upgrades
    • Updated security features
    • Lighting
    • Signage
    • Heating and air conditioning units
    • Room amenitiessuch as mini fridge, TV, coffee pot, microwave, etc.
    • Fees for building permits
    • Labor costs (electrician, plumber, inspectors, IT, etc.)

     
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  16. Jackpot Johnny

    Jackpot Johnny Wynn Fan

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    Yes. I have a Total Rewards Card I use maybe once every two years and I got the email-I’m about as far down the list as one could be, I’m thinking, so ‘everyone’ got it.
     
  17. IxAccDnf

    IxAccDnf VIP Whale

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    William Hill PLC Statement
    William Hill notes the announcement on June 24 by Eldorado Resorts regarding its proposed acquisition of Caesars Entertainment.

    William Hill entered into a strategic partnership with its long term business partner Eldorado in September 2018. Under the agreement, William Hill gained the right to exclusively operate sports books at all properties owned or managed by Eldorado in the United States and to operate mobile sports betting in states where Eldorado obtains a license. These rights apply to casino properties owned or managed by Eldorado when the strategic partnership was signed and any subsequent acquisitions. Therefore, the rights apply to casinos currently owned or managed by Caesars if Eldorado’s acquisition of Caesars is completed.

    -END-
     
    Last edited: Jun 25, 2019
  18. The Rumor

    The Rumor VIP Whale

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    the halls, entire casino floor, etc. need a refresh. Stations went absurdly high on Palms (probably too high) and it was, what, 700 M ish? I can buy that spending 500 M is silly, but I dunno what you really get for 100 M at a place that looks this bad. It probably needs at least 1/4 of a billion. You have to figure that CET has delayed every bit of maintenance that is possible here beyond just the aesthetics.
     
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  19. Tahoejoe2

    Tahoejoe2 VIP Whale

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    Received this email from Caesars today:

    We're excited to share the news that Caesars Entertainment is combining with Eldorado Resorts to create a new leader in gaming and entertainment. For our Caesars Rewards members, this will mean even more choices in even more places, giving you access to approximately 60 properties across 16 states.

    Today is the first day of a long journey as we merge our two companies but rest assured that the Caesars Rewards program will remain intact and be an important part of the combined company. There is no change to your Caesars Rewards program Tier Status, your Reward Credit balance or your existing reservations now or following the close of the transaction. You will continue to earn Tier Credits and Reward Credits for all of your activity as well as continue receiving offers and comps from your favorite Caesars resorts and casinos. There is no change to how you manage your Caesars Rewards account or book reservations.

    Over the coming months, as we have more to share, we'll be sure to reach out to you by e-mail, at caesars.com and via Twitter (@Caesars_Rewards). In the meantime, we remain at your service and appreciate your continued loyalty. We will keep doing everything we can to offer you the best casino loyalty program.

    See you soon!

    Tony Rodio
    Chief Executive Officer
     
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  20. joaks

    joaks desert tortoise

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    I know a lot of people are talking about jumping ship. Trying to be optimistic as a mid level diamond, I’m somewhat excited to see what new vacation options we get if/when/and to what extent, when the players clubs merge.

    I do hope to see properties sold or divested, especially in the Vegas market. I think we need more small and mid operators and less mega corps like mlife and Caesars.

    Since everyone else has a sane or insane prediction.... how about this. They sell the Rio and their flagship. Caesars Palace. Hard Rocks, Planet Hollywood’s, and Tropicana's are already branded names with multiple owners throughout the nation. Why not Caesars? Far fetched probably, but it would be interesting.