“This is a great outcome for the company, as we can reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations,” said Jonathan Halkyard, CFO and Treasurer, MGM Resorts International. The company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. The purchase price represents about an 11-times multiple on the average Adjusted Property EBITDA from 2019 to 2021. “Strategically, though, we decided to narrow our focus in Mississippi to a single resort, Beau Rivage (in Biloxi on the Gulf Coast), and dedicate more of our time and resources to continuing to drive success there.” “Gold Strike is a wonderful property with a bright future,” said MGM Resorts CEO Bill Hornbuckle. Tunica is about 20 miles south of Memphis. It has a 50,000-square-foot casino and more than 1,100 hotel rooms. The Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. “This acquisition will enable us to better serve our mission of growing the Cherokee Nation’s economy, while also having a significant positive impact on the local economies we serve.”Īt the closing of the transaction, expected by the first half of 2023, MGM Resorts’ master lease agreement with VICI Properties, which currently includes the Gold Strike, will be amended to reduce annual rent by $40 million. “We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation,” Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said in a statement.
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