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.”

Business Videos
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
LVCVA/Boring Company Press Conference
The Las Vegas Convention and Visitors Authority announced a collaboration with Elon Musk's The Boring Company to develop and operate an autonomous people mover system for the Las Vegas Convention Center District.
International Pizza Expo includes green and gluten free
The International Pizza Expo at Las Vegas Convention Center included companies focused on vegan and gluten free, and plant-based pizza boxes. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
International Pizza Expo kicks off in Las Vegas
The first day of the International Pizza Expo at Las Vegas Convention Center is everything Pizza. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
T-Mobile program aids guests with sensory needs
A program at T-Mobile Arena is designed to provide a more sensory friendly experience for guests.
Photo Booth Expo
Danielle May talks about how Simple Booth transformed her Volkswagen bus into a business.
Nevada Gaming Commission's highest fines
The highest fines assessed by the Nevada Gaming Commission, according to commission Chairman Tony Alamo: 1) Wynn Resorts Ltd., $20 million, 2019 2) CG Technology (then known as Cantor G&W Holdings), $5.5 million, 2014 3) The Mirage, $5 million ($3 million fine, $2 million compensatory payment), 2003 4) Stardust, $3 million, 1985 5) Santa Fe Station, $2.2 million ($1.5 million fine, $700,000 compensatory payment), 2005 6) Las Vegas Sands, $2 million, 2016 7) CG Technology, $1.75 million, 2018 8) CG Technology, $1.5 million (also $25,000 in escrow for underpaid patrons), 2016 9) Caesars Entertainment, $1.5 million, 2015 10) Imperial Palace, $1.5 million, 1989 11) Peppermill Casinos, $1 million, 2014
Tiny Pipe Home vs Shipping Crate
A Tiny pipe home was displayed at the International Builders Show this week in Las Vegas.
Auto repair shortage affects Las Vegas
The auto repair industry is facing a national shortage of workers.
Franchising industry booming
Experts say Las Vegas is a hotbed for the franchise industry.
TOP NEWS
Home Front Page Footer Listing