An iconic Las Vegas casino soon may be owned by a Berks County company.
Penn National Gaming has entered into an agreement to acquire the Tropicana Las Vegas Casino Hotel Resort.
The sale price was reported as $360 million.
“The planned acquisition of Tropicana Las Vegas establishes a strong presence on the Las Vegas Strip for Penn National Gaming, fulfilling an important long-term strategic objective for the company,” said Timothy Wilmott, CEO of Penn National Gaming. “With a $360 million acquisition cost, we believe we have structured a prudent transaction to own and operate a premier Strip asset at an attractive price of entry.”
The property consists of 35 acres of land at the intersection of Tropicana Boulevard and Las Vegas Boulevard. It has nearly 1,500 guest rooms, a 50,000-square-foot casino, a theater, a comedy club, spa and 100,000 square feet of meeting space.
Wilmott noted that over the past four years, Tropicana Las Vegas completed more than $200 million of property upgrades, including a renovation of all guest rooms, which now feature a South Beach theme.
He said Penn National intends to invest another $20 million in the property, including facility improvements that will update the casino floor and add retail food and beverage options. It also will be integrating Tropicana systems into Penn National’s existing systems, including its loyalty rewards.
A spokesman for Penn National said Penn National’s Marquee Awards program has three million gaming customers in the region from other casinos it operates in the West, including in Henderson, Nev., and in New Mexico.
Penn National is buying the Tropicana from its shareholders, the largest of which is a partnership between Onex (an investors’ group) and Alex Yemenidjian of Armenco Holdings LLC (a casino and gaming company).
The company will use existing credit facilities and cash on hand to fund the purchase, according to Wilmott.
The transaction and credit facility expansions are subject to regulatory approvals. Penn National expects the purchase to be completed by year end.