Hotel Online Special Report 
Stephen and Elaine Wynn Sign Definitive Agreement to Acquire the Desert Inn Hotel and Casino for Approximately $270 million WHITE PLAINS, N.Y., April 28, 2000 – Starwood Hotels Resorts Worldwide, Inc. (NYSE: HOT) announced today a definitive agreement to sell the Desert Inn Hotel and Casino in an all cash deal for approximately $270 million to Stephen A. and Elaine Wynn.
The transaction is not subject to any due diligence, financing or licensing conditions. The sale agreement includes the receipt of a $30 million nonrefundable deposit. The transaction is expected to close no later than June 30 of 2000. The actual proceeds to the company will exceed the purchase price due to certain adjustments related to the prior agreement for the sale of the asset to Sun International. Starwood will not incur any capital gains tax on the sale. Proceeds of the sale will be used to pay down debt and to repurchase stock under the company’s existing share repurchase authorization plan.
The agreement with Mr. and Mrs. Wynn also includes a right of first refusal in favor of Starwood for future development of timeshare at the asset.
“Though we received several attractive offers for the Desert Inn, the speed and certainty of this transaction made it the most attractive to shareholders,” said Barry S. Sternlicht, chairman and chief executive officer of Starwood Hotels Resorts. “The sale completes our exit from gaming and further strengthens our balance sheet. Net of cash and certain accounts receivable acquired in the Vistana timeshare acquisition, our debt will have been reduced from more than $9 billion in the third quarter of 1999 to approximately $ 5.2 billion as of June 30. Given this and the current strength of our operations, we are very optimistic we will achieve an investment grade rating this year.”
Historic Las Vegas Landmark, The Desert Inn Resort, Celebrates Fifty Years
LAS VEGAS—The Desert Inn Resort will celebrate its fiftieth birthday on April 24, 2000. This historic landmark was the fifth property to open on the Las Vegas Strip and it comprised 300 hotel rooms, a casino, a spa, two restaurants, seven shops and a “figure 8” Olympic size swimming pool. On April 24, 1950 Wilbur Clark, entrepreneur, stood proudly before hundreds of dignitaries, notable invited guests and members of the press as he ceremoniously tossed away the silver keys to the floor to ceiling glass doors that formed the entrance to the main lobby.
He proclaimed that there would never be a need to lock The Desert Inn doors again, in keeping with Las Vegas’ resort custom. Wilbur’s memory is honored with the fact that even throughout the growth of the property and the recent magnificent transformation of The Desert Inn, the doors have never closed.
The $3.5 million dollar Desert Inn opened with Edgar Bergen and Charlie McCarthy as headliners in the 450-seat Painted Desert Showroom, supported by Vivian Blaine, Pat Patrick, The Donn Arden Dancers and The Desert Inn Orchestra. In the first week alone profits were $750,000. Wilbur Clark’s Desert Inn showcased 300 beautiful rooms, the largest number available in any resort hotel in southern Nevada. It was also home to the largest casino (80’ x 60’) in any Nevada resort hotel.
Through the years, The Desert Inn Resort has seen many changes and additions. The golf course opened for members in 1952. In 1963 the St. Andrews tower was opened with an additional 100 rooms. Howard Hughes acquired the resort in March of 1967 for $13.25 million. From the initial 16-acres, The Desert Inn increased to 165-acres of luxury by 1978. Over $54 million worth of renovations were completed during this time, including the fourteen story Augusta tower. Upon completion of the Augusta tower, the hotel expanded from 300 rooms to 825. In the late 70’s, The Desert Inn gained more national exposure when it became the main setting for the television detective show Vega$ produced by Spelling Entertainment and starring Robert Urich as Dan Tanna. In 1997, The Desert Inn reemerged as the crown jewel of the Las Vegas Strip following a two-year, $200 million renovation.
Today, the serene surroundings of The Desert Inn Resort and Casino create a truly indulgent atmosphere. Guests may partake in a myriad of pleasures such as a round of golf on the only championship golf course on the Strip, tennis on one of four tournament courts that are lit for night play, or unwind with an exotic treatment in the unrivaled European-style spa. The casino provides an intimate and elegant gaming experience and the restaurants are among the finest in the United States.
Monte Carlo restaurant is the only Four Diamond restaurant in the city of Las Vegas and Portofino Italian Steakhouse was recently voted best Italian restaurant in Las Vegas by the Zagat survey. As The Desert Inn Resort reminisces on the glorious years gone by it has enjoyed a charmed history and looks forward in anticipation of a flourishing future.
Historic Las Vegas Landmark, The Desert Inn Resort, Celebrates Fifty Years
LAS VEGAS—The Desert Inn Resort will celebrate its fiftieth birthday on April 24, 2000. This historic landmark was the fifth property to open on the Las Vegas Strip and it comprised 300 hotel rooms, a casino, a spa, two restaurants, seven shops and a “figure 8” Olympic size swimming pool. On April 24, 1950 Wilbur Clark, entrepreneur, stood proudly before hundreds of dignitaries, notable invited guests and members of the press as he ceremoniously tossed away the silver keys to the floor to ceiling glass doors that formed the entrance to the main lobby.
He proclaimed that there would never be a need to lock The Desert Inn doors again, in keeping with Las Vegas’ resort custom. Wilbur’s memory is honored with the fact that even throughout the growth of the property and the recent magnificent transformation of The Desert Inn, the doors have never closed.
The $3.5 million dollar Desert Inn opened with Edgar Bergen and Charlie McCarthy as headliners in the 450-seat Painted Desert Showroom, supported by Vivian Blaine, Pat Patrick, The Donn Arden Dancers and The Desert Inn Orchestra. In the first week alone profits were $750,000. Wilbur Clark’s Desert Inn showcased 300 beautiful rooms, the largest number available in any resort hotel in southern Nevada. It was also home to the largest casino (80’ x 60’) in any Nevada resort hotel.
Through the years, The Desert Inn Resort has seen many changes and additions. The golf course opened for members in 1952. In 1963 the St. Andrews tower was opened with an additional 100 rooms. Howard Hughes acquired the resort in March of 1967 for $13.25 million. From the initial 16-acres, The Desert Inn increased to 165-acres of luxury by 1978. Over $54 million worth of renovations were completed during this time, including the fourteen story Augusta tower. Upon completion of the Augusta tower, the hotel expanded from 300 rooms to 825. In the late 70’s, The Desert Inn gained more national exposure when it became the main setting for the television detective show Vega$ produced by Spelling Entertainment and starring Robert Urich as Dan Tanna. In 1997, The Desert Inn reemerged as the crown jewel of the Las Vegas Strip following a two-year, $200 million renovation.
Today, the serene surroundings of The Desert Inn Resort and Casino create a truly indulgent atmosphere. Guests may partake in a myriad of pleasures such as a round of golf on the only championship golf course on the Strip, tennis on one of four tournament courts that are lit for night play, or unwind with an exotic treatment in the unrivaled European-style spa. The casino provides an intimate and elegant gaming experience and the restaurants are among the finest in the United States.
Monte Carlo restaurant is the only Four Diamond restaurant in the city of Las Vegas and Portofino Italian Steakhouse was recently voted best Italian restaurant in Las Vegas by the Zagat survey. As The Desert Inn Resort reminisces on the glorious years gone by it has enjoyed a charmed history and looks forward in anticipation of a flourishing future.
Contact: Katie Meyer VP, Public Relations of Starwood, 914-640-8247 http://www.starwoodlodging.com Also See: Starwood Sells Caesars World, Inc to Park Place Entertainment for $3.0 Billion / April 1999 MGM Grand to Acquire Mirage Resorts For $21 Per Share; A Dream Combination of Assets and People According to MGM’ s Terrence Lanni / Mar 2000