Boyd Gaming strikes $380M deal to purchase Aliante Hotel

Las Vegas-based Boyd Gaming Corp. on Thursday announced it has a deal to acquire the holding company for Aliante Hotel in North Las Vegas.

The acquisition of the holding company, ALST Casino Holdco LLC, is for $380 million cash, according to a statement.

The hotel had been rumored to be on the market for several weeks.

“Aliante is an asset without rival in the North Las Vegas market, strategically positioned to benefit from substantial future growth across the northern part of the Las Vegas Valley,” said Boyd President and CEO Keith Smith in a statement.

Industry observers generally praised the deal Thursday.

Deutsche Bank analyst Carlo Santarelli said in a note to investors that the purchase “fills a geographic hole” in Boyd’s locals portfolio, which has no properties in North Las Vegas’ $270 million gaming market.

Targets for a 9.7 percent gain in revenue in 2016 are “reasonable” as Boyd brings its B Connected loyalty program to Aliante, Santarelli added. The acquisition will also bring to Aliante efficiencies in purchasing, shared services, insurance and other expenses.

Wells Fargo Securities’ equity research division released analysis saying it made sense for Boyd to up its exposure to the Las Vegas market, which generates about 30 percent of the company’s net income. Boyd also operates in New Jersey, Mississippi, Louisiana, Kansas, Iowa, Illinois and Indiana.

Local indicators including wage growth and taxable sales “remain positive,” the report said. Gaming revenue in North Las Vegas increased 3 percent in 2015.

North Las Vegas in particular could be set for a broader economic boom, with Faraday Future’s $1 billion car-manufacturing plant ready to start construction. The project could create 4,500 direct jobs and 9,000 indirect jobs.

“The factory coming to Nevada is reflective of the business-friendly environment (low tax rates), state and local government’s focus on spurring new investment and the cities’ favorable climate and number of year-round entertainment options,” Wells Fargo’s report said.

It added that the factory would be “a positive development for both the downtown and Las Vegas locals economy.”

The $662 million Aliante opened Nov. 11, 2008, as a joint venture between the Greenspun Corp. and Station Casinos. Greenspun donated 40 acres for the project that was expected to draw from the Aliante master-planned community just as the Green Valley Ranch Resort in Henderson had done with Green Valley.

After it opened as Aliante Station in the midst of the Great Recession, the property struggled and defaulted on payments to creditors. Aliante’s Chapter 11 bankruptcy case closed in 2012 after a Reno bankruptcy court approved its plan in May 2011. The property went to lenders who were owed $378 million.

Situated at 7300 N. Aliante Parkway, Aliante Hotel has 202 rooms. The hotel and casino includes more than 1,800 slot machines, 36 table games, a race and sports book and Regal Aliante Stadium 14 cinema.

It’s the second reported deal involving Boyd Gaming in two days.

Reuters reported Wednesday that Boyd is close to an agreement to buy Cannery Casino Resorts in a deal that will value the privately held U.S. company at between $225 million and $240 million.

One of Cannery Casino Resorts’ two Las Vegas locations — the Cannery and Eastside Cannery — would give Boyd a strong foothold in the fast-growing north area of the city, which is emerging as a hub for technology start-ups, attracting affluent professionals with money to gamble.

An agreement between Boyd and Cannery Casino Resorts could come within weeks, sources told Reuters, asking not to be named because the matter was private.

Boyd spokesman David Strow said late Thursday that the company had nothing further to add about a potential Cannery deal.

“We’ve said many times that we are looking for ways to grow, and we look at many potential opportunities,” Strow said. “But we don’t comment on speculation about what we may or may not be interested in acquiring.”

ad-high_impact_4
Business
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
TOP NEWS
News Headlines
Home Front Page Footer Listing
Circular
You May Like

You May Like