Golden Nugget Sold..Again
Landry's Restaurants, Inc.one of the nation's largest casual dining and
entertainment companies, announced that it will purchase the
landmark Golden Nugget Casino in downtown Las Vegas from Poster
Financial Group, Inc. for $140 million in cash and the assumption of
$155 million of Senior Secured Notes due 2011, as well as certain
working capital liabilities.
The acquisition, subject to regulatory approvals, is expected to
close during the next twelve months. The Golden Nugget, one of the
most recognizable names in gaming, occupies over eight acres in
downtown Las Vegas with approximately 40,000 square feet of gaming
area. The lavish property also features three towers containing
1,907 rooms, the largest number of guestrooms in downtown Las Vegas,
with some of the most dynamic suites in town.
"Landry's is thrilled to add casino gaming to a varied and diverse
collection of entertainment offerings that already includes casual
and fine dining, hospitality and aquarium properties," said Tilman
Fertitta, Chairman, President and CEO of Landry's. "The Golden
Nugget is the premier property in downtown Las Vegas, has
outstanding brand recognition across the country, and is a perfect
fit for us."
"Landry's operating skill and steady leadership will help boost the
Golden Nugget to a new level of performance and satisfaction,"
Fertitta added. "We are pleased to enter the vibrant Las Vegas
market, and to incorporate the Golden Nugget Hotel and Casino into
our family of entertainment concepts. The Golden Nugget is
nationally recognized for its AAA Four Diamond service, excellent
facility and strong price value perception. This transaction
provides us with a well-recognized brand that can be expanded into
other markets. The Las Vegas base provides an extremely strong
foundation for our gaming division."
Chief Financial Officer Rick Liem said, "We believe the property has
excellent upside potential and will be accretive to our 2006
Poster Financial Group, Inc. is owned by Timothy Poster and Thomas
Breitling, the entrepreneurs who founded the revolutionary travel
website Travelscape.com and later sold it to Expedia.
"This sale is designed to capitalize on the tremendous demand for
casino properties in Las Vegas and to enhance the ability of our
company to participate in various business opportunities," said Tim
Poster, Chairman and Chief Executive Officer of Poster Financial
Group. "We are delighted that Landry's shares our appreciation for
the contributions of the Golden Nugget's employees and customers
toward making this property a leader for many years in Las Vegas,"
said Poster. "We believe that Landry's will be a proud guardian of
the Golden Nugget brand and will enjoy continued financial success
with the property."
The Golden Nugget casino sports over 1,300 modern slot machines and
50 table games, with popular features including Caribbean Stud
Poker, Pai Gow Poker and The Race and Sports Book. A newly-expanded
high-limit salon offers an intimate setting with a large variety of
games. The hotel boasts a 400-seat showroom featuring stars such as
Tony Bennett and Regis Philbin and approximately 30,000 square feet
of meeting and banquet facilities, including a 10,000 square-foot
glass-enclosed pavilion. The property has undergone $35 million in
upgrades and room renovations in the last three years.
The Golden Nugget, one of the most historic casinos in Las Vegas, is
ideally located in the midst of the greatest boom that the city has
seen since the birth of the world-famous Las Vegas Strip in the
1940s. The current revitalization of downtown Las Vegas puts the
Golden Nugget within walking distance of several luxury high-rise
developments, the Las Vegas Premium Outlets shopping mall and the
upgraded and ever-popular Fremont Street Experience, among many
Currently, legendary performer Tony Bennett is serving as the Golden
Nugget's spokesman and "Ambassador of Cool," with a year-long
campaign that includes a 15-show engagement. The Golden Nugget's
revived vintage-Vegas appeal, combined with the extensive
renovations to guestrooms, lobby space and gaming areas in the last
five years, make it downtown's leading hospitality and gaming site.
The Golden Nugget was founded in 1946. However, the property truly
took off after Steve Wynn purchased a controlling interest in the
casino in 1972. During Wynn's 28-year ownership, which ended with an
acquisition by MGM Grand, the Golden Nugget renovated its casino and
added three towers, giving it the largest number of guest rooms in
downtown Las Vegas.
Wynn's tenure was marked by glamour and style, with headliner Frank
Sinatra helping Willie Nelson inaugurate the Theatre Ballroom in
1984 and high rollers being chauffeured in by jet, helicopter and
limousine. The property is a foundation member of the Fremont Street
Experience, a five block-long pedestrian mall boasting multi-sensory
light shows choreographed to booming symphonic sound. The
attraction, which also includes boxing, live music and much more,
was founded in 1995 and is now viewed by more than 25,000 visitors
Today, the Golden Nugget features five award-winning restaurants,
retail shops, an outdoor pool and a spa and salon, among many other
amenities. The concept received its first AAA Four Diamond award for
excellence in 1977, and has now received the honor 27 years in a row.
"Steve Wynn's inimitable style set the standard for personal service
that is still the guiding force driving the Golden Nugget today,"
said Maurice Wooden, Chief Operating Officer of the Golden
Nugget. "The Golden Nugget has an employee tenure averaging more
than 10 years and tremendous loyalty from its core customer base."
Source: Landry's Restaurants, Inc.