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Thursday
29 September 2011
8:18 p.m.
Riviera Holdings Corp. of Las Vegas is selling its casino in Black Hawk, Colo., for $76 million to Monarch Casino & Resort Inc. of Reno, owner of the Atlantis Casino Resort Spa in Reno, the companies announced.
"This transaction is a true win-win for everyone involved. Divesting the Black Hawk property allows us to focus on turning around the historic Riviera Las Vegas," Andy Choy, CEO of Riviera Holdings, said in a statement. "Additionally, the employees of the Riviera Black Hawk will have access to the resources they need to take that property to the next level."
This was the first major deal for Riviera Holdings since it emerged from bankruptcy this spring in a deal engineered by hotelier Barry Sternlicht.
The companies didn't immediately say whether the Black Hawk property would keep the Riviera name and what Riviera Holdings intends to do with the sales proceeds.
The Colorado property, opened in February 2000, has some 750 slot machines, eight table games, a buffet and a 500-space parking structure. Riviera Black Hawk, about 40 miles west of Denver, is the first casino encountered by visitors arriving from Denver on Highway 119.
The Black Hawk casino generated net revenue of $9.9 million in the second quarter vs. $21.6 million from the larger Riviera Las Vegas, which has a hotel with 2,075 rooms, Riviera said in its financial report.
The companies said that for the 12 months ended Aug. 31, Riviera Black Hawk had net revenue of $39.6 million and adjusted EBITDA of $10.3 million and that Monarch expects the deal to immediately boost its earnings.
EBITDA means earnings before interest, taxes, depreciation and amortization.
"Today's announcement is an important milestone for us. Despite the significant challenges posed by the economy over the last several years, we have successfully positioned Monarch to take advantage of what we believe to be an attractive growth opportunity," John Farahi, co-chairman and CEO of Monarch, said in the statement. "Our decision to acquire this particular property was influenced by a combination of factors, including our desire for growth through geographic diversification, the Riviera Black Hawk's close proximity to the Denver market, its relatively favorable regulatory environment and our ability to maximize revenue potential by applying our operational expertise at a facility whose parent company recently emerged from bankruptcy. We look forward to welcoming the Riviera Black Hawk team of approximately 250 employees to the Monarch family."
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Hope they will be reinvesting that money in the Riviera. Fortunately, the Riviera isn't at the point of no return like the Sahara was.
If they can freshen up the rooms (please get rid of the plastic tub enclosers) and brighten up the depressing casino, things could be looking up for the Riviera. I might even venture that far north on the strip again!
I stayed at the Riviera three weeks ago. During the day the casino was slow but it did pick up in the evening and was a lot of fun. The dealers were great. The drinks came at a quick pace and the action heated up around nine PM. I enjoyed my stay. It's good to hear that they will concentrate their strategy on the Riviera and make it even better. I think things are looking up for the Riviera. I have stayed at the Riviera many times over the years and I look forward to my next visit. I think its a good move to sell Black Hawk and concentrate on the Riviera.
Dump.