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
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like