Boyd Gaming to Acquire Cannery Casino Properties, as well as Aliante
Posted on: April 26, 2016, 08:41h.
Last updated on: October 13, 2016, 01:29h.
Boyd Gaming’s real estate splurge continues as the company looks to expand its dominant position in the Las Vegas locals market into North Vegas.
Boyd announced this week that it would acquire the Las Vegas assets of Cannery Casino Resorts for $230 million, namely the Cannery Casino Hotel in North Vegas and the Eastside Cannery Casino and Hotel, next to Sam’s Town.
The announcement comes just a week after Boyd revealed it is due to buy another North Vegas property, the Aliante Casino Hotel, and Spa, for $380 million.
Resurgent Locals Market
The locals market is on the up, and with it North Vegas. Work is set to start on the construction of Faraday’s $1 billion car-manufacturing plant in the area, which is expected to create 4,500 direct and 9,000 indirect jobs, further invigorating the economy in both North Las Vegas and the locals casino market.
Meanwhile, as overall Vegas visitor numbers swell, so do room rates on the Strip, which means visitors on a budget are looking the cheaper alternatives.
Boyd said recently that the Las Vegas locals market now accounts for some 28 percent of its revenue, up from 22 percent in 2014. It expects the Cannery acquisition to add $32 million in earnings before interest, tax, depreciation and amortization in its first full year.
“Together, Aliante and Cannery Casino will give us a strong foothold in North Las Vegas, one of the fastest-growing areas in the Las Vegas Valley,” said Keith Smith, President and CEO of Boyd Gaming. “And we will have unique synergy opportunities at Eastside Cannery, given its close proximity to Sam’s Town.”
Eyes on Growth
“Our southern Nevada assets have delivered the strongest revenue growth in our Company over the last two years, and this acquisition will broaden our portfolio in this promising market. We look forward to welcoming Cannery’s team members and customers to the Boyd Gaming family.”
“This transaction is a great tuck-in acquisition that further expands our presence in the Las Vegas Locals market at an attractive price,” he added.
The Aliante and Cannery acquisitions will bring Boyd’s casino portfolio to 12 in Southern Nevada, including the California, Fremont and Main Street Station in downtown Vegas; and Orleans, Gold Coast, Suncoast and Sam’s Town in other areas of the city. It also owns two casinos in Henderson and a dozen more in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey.
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