Caesars Acquisition (CAC) has announced that Caesars Growth Partners has signed an agreement with Caesars Entertainment to acquire Bally’s Las Vegas, The Cromwell, The Quad Resort & Casino and Harrah’s New Orleans, for around $2.2bn.
In addition, Caesars Growth Partners will retain a 50% interest in the management fee revenues to be received by certain subsidiaries of Caesars Entertainment Operating, a wholly-owned subsidiary of Caesars Entertainment, in connection with the management of the acquired assets.
Along with this transaction, CAC has also announced a $223m renovation of The Quad.
The Cromwell is slated to open later this year as a standalone boutique hotel and casino on the Las Vegas Strip.
A renovation of Bally’s Las Vegas’s Jubilee Tower was recently completed, and additional renovations are currently under way.
CAC noted that Harrah’s New Orleans is a key asset that exemplifies Caesars Entertainment’s city-integrated resort model in a compelling destination area.
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The renovations at The Quad Resort & Casino include the complete remodelling of guest rooms and common areas, expansion of meeting spaces, the addition of new dining experiences and amenities, a transformation of the pool and spa, infrastructure upgrades and completion of the exterior facade.
The refurbishments follow $90m of recent upgrades to public spaces, gaming floor and portions of the exterior façade at the 2,308-room property.
The renovations at The Quad are expected to be completed in the first half of 2015.
CAC CEO Mitch Garber said the acquisition of the assets further aligns Growth Partners’ portfolio with attractive markets, especially Las Vegas.
"These four properties will strongly complement our existing portfolio, particularly Planet Hollywood and our interest in Horseshoe Baltimore, which will open later this year," Garber added.
The transaction, which is expected to complete in the second quarter of 2014, is subject to certain closing conditions, including the receipt of required regulatory approvals.