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Caesars Entertainment is seeking a buyer for its Flamingo casino in Las Vegas at a price of more than $1bn, according to local sources.
Some potential buyers have apprently already passed on the property. The casino has been offered to private equity firms and other operators, some of whom have been reluctant to buy an older property that needs a lot of maintenance.
Another issue is that the Flamingo would likely lose a lot of business when separated from the Caesars customer loyalty programme.
Caesars has said it wants to sell one of its casinos on the Las Vegas Strip as part of an effort to reduce debt. The company started the sale process earlier this year and expects to complete it by mid-summer, CEO Tom Reeg said on a conference call with investors. Caesars had $13.5bn in net debt at the end of the first quarter.
“When you get a lot of lawyers involved, the work extends to whatever the maximum allowable deadline is,” Reeg said. “So if we finish one day ahead of that six months, I’d be very pleased.”
The Flamingo Las Vegas deals offer everything from newly-renovated rooms, classic entertainment and a lush, tropical pool to a prime center-Strip location.
Read also the news from HERE.