|
|
the Las Vegas Hilton to Ed Roski, Jr. for $365 million |
LAS VEGAS, July 11, 2000 � Park Place Entertainment
announced today that it has entered into an agreement to sell the Las Vegas
Hilton to Ed Roski, Jr. The transaction is expected to be completed by
year end and is subject to regulatory approval.
Total consideration for the property is estimated at $365 million, consisting of the following components:
No shutdown of the property is planned and employees can expect continuity in their positions at the casino resort. Additionally, the sale is not expected to impact the proposed plans to extend the Bally�s-MGM Grand monorail to the Las Vegas Hilton, as the buyer agrees with Park Place�s position. �The sale of the Las Vegas Hilton allows Park Place to consolidate its high-end gaming operations at the legendary Caesars Palace,� said Arthur Goldberg, President and CEO of Park Place Entertainment. �We plan to use the proceeds of the sale to paydown debt and repurchase the Company�s common stock.� Goldberg added, �We can now focus 100% of our efforts in Las Vegas on our four properties at the center of the Las Vegas Strip, while at the same time we can feel comfortable knowing that this asset will be in the hands of a successful and responsible businessman like Ed Roski.� Roski, who built a multi-faceted business empire which includes real estate, entertainment, hospitality, gaming and property management, said that while it is premature to discuss specific plans for the Las Vegas Hilton, he and his team have several areas in which they plan to focus their efforts. These include:
Roski added that he will be working with the Hilton Corporation to continue the association with the internationally recognized brand. �We�re very excited to bring our commitment and ideas to one of Las Vegas� most identifiable properties,� said Roski. Roski pointed to these factors that made the purchase of the Las Vegas Hilton appealing:
Roski conceptualized and developed the STAPLES Center in downtown Los Angeles. He is a co-owner of the NBA championship Los Angeles Lakers and NHL�s Los Angeles Kings. Roski built the Silverton Hotel & Casino (then Boomtown) in 1994 and has operated the hotel/casino since 1997. In all, Roski�s companies have built more than three million square feet of property in Southern Nevada. Park Place Entertainment is the world�s largest gaming company and owns, manages or has an interest in 28 gaming properties operating under the Bally�s, Caesars, Paris, Flamingo, Grand and Hilton brand names with a total of approximately 2 million square feet of gaming space, over 28,000 hotel rooms and approximately 57,000 employees worldwide. This press release contains �forward-looking statements� within the meaning of federal securities law, including statements concerning anticipated future events and expectations. |
Geoffrey Davis, Vice President-Corporate Communications 3930 Howard Hughes Parkway Las Vegas, NV 89109-0943 Tel: 702-699-5000 http://www.parkplace.com/ |