ADAM GOLDMAN, Associated Press Writer
Wednesday, December 24, 2003
(12-24) 16:55 PST LAS VEGAS (AP) --
Park Place Entertainment announced Wednesday it had reached a deal to sell its Las Vegas Hilton property for $280 million to Colony Capital of Los Angeles.
Park Place officials said Colony Capital will purchase all of the landmark hotel-casino's assets, including its current liabilities. Colony Capital also expects to reach an agreement with the Hilton Hotels Corporation that will allow it continued use of the Hilton name.
Wallace R. Barr, Park Place president and chief executive officer, said the sale will allow the company to focus on its core properties on the Las Vegas Strip and pay down debt totaling more than $4 billion.
Las Vegas-based Park Place, the world's largest casino company, said it should close on the transaction in the second quarter of next year. The company expects to report a gain of $85 million after taxes, or 28 cents per share.
"The sale of the Las Vegas Hilton will have a meaningful impact on our financial position and should add to our earnings," said Harry C. Hagerty, Park Place executive vice president and chief financial officer.
Colony Capital intends to revamp the hotel built in 1969 by billionaire Kirk Kerkorian and host to such legendary entertainers as Barbra Streisand and Elvis Presley. Hilton acquired the hotel in 1970.
Colony Capital spokesman Owen Blicksilver said the company plans to improve the Hilton's casino floor and renovate its hotel rooms. Blicksilver declined comment on reports of expansion plans.
The hotel has 3,000 rooms and adjoins the 3.2 million-square-foot Las Vegas Convention Center.
"The hotel-casino and the prime real estate on which it sits are truly irreplaceable assets," said Thomas J. Barrack, Jr., chairman and chief executive of Colony Capital. "We look forward to this opportunity to further enhance and reposition the property."
Colony Capital is a private investment firm that owns Resorts International in Atlantic City and a partner in Accor Casinos in Europe.
Park Place owns, manages or has an interest in 29 gambling properties operating under the Caesars, Bally's, Paris, Flamingo, Grand Casinos and Hilton brand names. The company has 54,000 employees and 29,000 hotel rooms worldwide.
Wednesday, December 24, 2003
(12-24) 16:55 PST LAS VEGAS (AP) --
Park Place Entertainment announced Wednesday it had reached a deal to sell its Las Vegas Hilton property for $280 million to Colony Capital of Los Angeles.
Park Place officials said Colony Capital will purchase all of the landmark hotel-casino's assets, including its current liabilities. Colony Capital also expects to reach an agreement with the Hilton Hotels Corporation that will allow it continued use of the Hilton name.
Wallace R. Barr, Park Place president and chief executive officer, said the sale will allow the company to focus on its core properties on the Las Vegas Strip and pay down debt totaling more than $4 billion.
Las Vegas-based Park Place, the world's largest casino company, said it should close on the transaction in the second quarter of next year. The company expects to report a gain of $85 million after taxes, or 28 cents per share.
"The sale of the Las Vegas Hilton will have a meaningful impact on our financial position and should add to our earnings," said Harry C. Hagerty, Park Place executive vice president and chief financial officer.
Colony Capital intends to revamp the hotel built in 1969 by billionaire Kirk Kerkorian and host to such legendary entertainers as Barbra Streisand and Elvis Presley. Hilton acquired the hotel in 1970.
Colony Capital spokesman Owen Blicksilver said the company plans to improve the Hilton's casino floor and renovate its hotel rooms. Blicksilver declined comment on reports of expansion plans.
The hotel has 3,000 rooms and adjoins the 3.2 million-square-foot Las Vegas Convention Center.
"The hotel-casino and the prime real estate on which it sits are truly irreplaceable assets," said Thomas J. Barrack, Jr., chairman and chief executive of Colony Capital. "We look forward to this opportunity to further enhance and reposition the property."
Colony Capital is a private investment firm that owns Resorts International in Atlantic City and a partner in Accor Casinos in Europe.
Park Place owns, manages or has an interest in 29 gambling properties operating under the Caesars, Bally's, Paris, Flamingo, Grand Casinos and Hilton brand names. The company has 54,000 employees and 29,000 hotel rooms worldwide.
