Popular Strip attraction to be sold in $275M deal

By David Danzis Las Vegas Review-Journal

2 months ago

Tourists walk at The Linq Promenade on Sunday, June 7, 2020, in Las Vegas. (Bizuayehu Tesfaye/L ... — Tourists walk at The Linq Promenade on Sunday, June 7, 2020, in Las Vegas. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye

Visitors walk along The LINQ Promenade as gambling numbers are up on Thursday, July 28, 2022, in Las Vegas. (L.E. Baskow/Las Vegas Review-Journal) @Left_Eye_Images

Caesars Entertainment is selling the LINQ Promenade for $275 million, the company announced Tuesday.

Reno-based Caesars Entertainment said a yet-to-be-formed joint venture between TPG Real Estate and an investment management platform of Acadia Realty Trust is buying the popular retail and dining attraction on the Strip.

The sale, which is expected to close before the end of the year, is subject to regulatory approvals and other closing conditions, according to a news release.

“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals,” said Tom Reeg, Caesars Entertainment’s chief operating officer, in a prepared statement.

Caesars Entertainment operates the LINQ casino-hotel and the Flamingo casino-hotel, the two properties that abut the Promenade. The High Roller Wheel, another Caesars-operated venture located at the back of the LINQ Promenade, is not part of the sale.

Caesars also announced the closing of the $500 million sale of the World Series of Poker brand to NSUS Group Inc. According to Caesars, the transaction includes $250 million in cash and a $250 million promissory note due five years after closing.

Caesars will retain the rights to host flagship WSOP events for the next 20 years.

Both transactions were publicized shortly before Caesars Entertainment’s third-quarter earnings call Tuesday.

During the call, Reeg said that Caesars continues to explore opportunities around “non-core” asset sales, such as the LINQ Promenade and the WSOP brand. Reeg said portions of both sales would be used to pay down the company’s debt obligations, which according to financial filings stood at about $12.7 billion.

“By the end of this year, we will have reduced debt by 25 percent in absolute numbers since we closed the Caesars transaction (in 2020),” he said. “Debt reduction remains our No. 1 priority.”

The company’s quarterly results showed a slight decline in revenue ($1.06 billion, down 1.3 percent year-over-year) and income ($226 million, down 5 percent year-over-year) from its Las Vegas casino hotels, which, in addition to the LINQ and Flamingo, includes Caesars Palace, Harrah’s, Horseshoe, Paris and Cromwell. Year-to-date, net revenue ($3.2 billion) and net income ($696 million) are down 1.3 percent and 10.4 percent, respectively, at Las Vegas properties operated by Caesars Entertainment.

Contact David Danzis at ddanzis@reviewjournal.com or (702) 383-0378. Follow @AC2Vegas_Danzis on X.