Penn National toasts successful purchase of Margaritaville Resort Casino operations
Penn National Gaming has completed the acquisition of the operations of Margaritaville Resort Casino, Louisiana, for $115m.
The operator has signed a triple net lease agreement with VICI Properties, with the annual rent costing approximately $23m during an agreed term of 15 years; this includes renewal options.
The casino was built in 2013 and offers gaming, lodging, dining and entertainment experiences to those visiting the Northern Louisiana resort.
Margaritaville boasts 26,500 square feet of casino space, 395 hotel rooms, six restaurants and a 1,000 seat theatre.
Timothy J. Wilmott, Penn National CEO, said: "Margaritaville is an attractive addition to our regional gaming platform. This acquisition is in line with our efforts to enhance shareholder value as it is immediately accretive to our free cash flow, further diversifies our revenue and operating base and offers a well-defined path to the realisation of synergies that are expected to lower the purchase multiple.
"Margaritaville is one of the leading casino resorts in Bossier City, and we expect that our proven integration and operation strategies will help grow operating margins as well as free cash flow contributions from the property."