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Vici Properties

From Alfawiki
Vici Properties Inc.
Company typePublic
IndustryReal estate investment trust
Founded2017; 9 years ago (2017)
FounderSpin-off from Caesars Entertainment Corporation
Headquarters
New York City
,
United States
Area served
United States, Canada
ProductsCasino and entertainment real estate
Websitewww.viciproperties.com

Vici Properties Inc. is a publicly listed American real estate investment trust (REIT) specializing in casino and entertainment real estate, with its main office located in New York City. Founded in 2017 as a spin-off from Caesars Entertainment Corporation amid its bankruptcy restructuring, Vici holds ownership of 54 casinos, hotels, racetracks, four golf courses, and 38 bowling centers throughout the United States and Canada.

History

Vici emerged from the Chapter 11 bankruptcy reorganization of Caesars Entertainment Operating Company (CEOC), which was Caesars' largest business unit. In January 2015, CEOC filed for bankruptcy and proposed a division into a REIT that would own the casino properties and an operating company to manage them. This approach was designed to enhance creditor returns by utilizing favorable tax treatment available to REITs, despite facing resistance from certain Congressional members. The spin-off finalized on October 6, 2017, coinciding with CEOC’s exit from bankruptcy protection. At inception, Vici held nineteen casinos and racetracks leased back to Caesars for $630 million annually, along with four golf courses. The company's name is derived from the Latin term "vici," meaning "I conquered."

In December 2017, Vici purchased Harrah's Las Vegas from Caesars for $1.1 billion and leased it back for $87.4 million per year. In January 2018, MGM Growth Properties proposed a $5.9 billion acquisition of Vici; however, Vici’s board declined the offer and instead pursued an initial public offering (IPO), successfully raising $1.2 billion on the New York Stock Exchange in February 2018.

By mid-2018, Vici had moved its headquarters to New York City. That same year, it acquired the Octavius Tower at Caesars Palace for $508 million and Harrah's Philadelphia for $242 million, both leased back to Caesars under long-term agreements.

In 2019, Vici expanded its portfolio through collaborations with Penn National Gaming by acquiring the real estate assets of Margaritaville Resort Casino and Greektown Casino–Hotel for $261 million and $700 million respectively; Penn operates these venues under lease contracts that generate $79 million annually for Vici. Later that year, Vici purchased Jack Cincinnati Casino for $558 million and leased it to Hard Rock International at an annual rent of $43 million.

In December 2019, together with Century Casinos, Vici acquired three casinos from Eldorado Resorts—Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville, and Mountaineer Casino—for a total of $278 million, leasing them back at $25 million per year. Early in 2020, additional acquisitions included Jack Cleveland Casino and Jack Thistledown Racino for $843 million with leases producing $66 million annually.

After Eldorado Resorts acquired Caesars Entertainment in July 2020—making Caesars Vici’s principal tenant—Vici purchased three Caesars properties (Harrah's Atlantic City, Harrah's Laughlin, and Harrah's New Orleans) for $1.8 billion and leased them back at an annual rate of $154 million.

Beginning in 2020, Vici diversified its operations beyond gaming by offering construction loans paired with purchase options for hospitality and entertainment venues. By 2023, its financing portfolio included Canyon Ranch spas, Great Wolf Resorts water parks, Kalahari Resorts water park projects, Cabot golf resorts, and BigShots Golf driving ranges. Additionally, it acquired Manhattan’s Chelsea Piers entertainment complex along with 38 Bowlero bowling alleys.

In 2022, Vici significantly expanded its holdings by acquiring MGM Growth Properties for $17.2 billion (including assumed debt) and purchasing the Venetian resort complex on the Las Vegas Strip from Las Vegas Sands for $4 billion. This deal added thirteen wholly owned properties plus partial ownership stakes in MGM Grand Las Vegas and Mandalay Bay; Apollo Global Management operates these under lease agreements totaling $250 million annually. In January 2023, Vici acquired Blackstone’s half interest in MGM Grand and Mandalay Bay for $1.27 billion plus assumed debt.

Additional smaller acquisitions during 2022–2023 comprised eight casinos in Alberta from Pure Canadian Gaming and Century Casinos valued at US$363 million; two Mississippi casinos bought alongside Foundation Gaming for $293 million; as well as the Rocky Gap Casino Resort in Maryland acquired jointly with Century Casinos for $204 million.

Leased to Caesars Entertainment

Leased to Century Casinos

Leased to MGM Resorts International

  • Beau Rivage – located in Biloxi, Mississippi
  • Borgata Hotel Casino and Spa – based in Atlantic City, New Jersey
  • Excalibur Hotel and Casino – sited at Paradise, Nevada
  • Luxor Las Vegas – situated within Paradise, Nevada
  • Mandalay Bay – located in Paradise, Nevada
  • MGM Grand Detroit – found in Detroit, Michigan
  • MGM Grand Las Vegas – positioned in Paradise, Nevada
  • MGM National Harbor – based at Oxon Hill, Maryland
  • MGM Northfield Park – located in Northfield, Ohio
  • MGM Springfield – situated at Springfield, Massachusetts
  • New York-New York Hotel and Casino – located within Paradise, Nevada
  • Park MGM – based at Paradise, Nevada
  • T-Mobile Arena (land only) – situated at Paradise, Nevada
  • Yonkers Raceway & Empire City Casino – found in Yonkers, New York

Leased to Pure Canadian Gaming

  • Pure Casino Calgary — based in Calgary, Alberta
  • Pure Casino Edmonton — located in Edmonton, Alberta
  • Pure Casino Lethbridge — situated at Lethbridge, Alberta
  • Pure Casino Yellowhead — positioned within Edmonton, Alberta

Leased to other companies

  • Caesars Southern Indiana – located at Elizabeth, Indiana (leased by the Eastern Band of Cherokee Indians)
  • Chelsea Piers Sports & Entertainment Complex – Manhattan, New York (leasehold interest; subleased to Chelsea Piers)
  • Fitz Casino & Hotel – positioned within Tunica Resorts, Mississippi (leased by Foundation Gaming)
  • Gold Strike Tunica – found at Tunica Resorts, Mississippi (leased by Cherokee Nation Businesses)
  • Hard Rock Casino Cincinnati — based in Cincinnati, Ohio (leased by Hard Rock International)
  • Hollywood Casino at Greektown — situated in Detroit, Michigan (leased by Penn National Gaming)
  • Jack Cleveland Casino – located at Cleveland, Ohio (leased by Jack Entertainment)
  • Jack Thistledown Racino – positioned within North Randall, Ohio (leased by Jack Entertainment)
  • Margaritaville Resort Casino – found at Bossier City, Louisiana (leased by Penn National Gaming)
  • The Mirage – sited at Paradise, Nevada (leased by Hard Rock International)
  • Sphere (land only) – located in Paradise, Nevada (leased by Sphere Entertainment)
  • The Venetian Las Vegas – based at Paradise, Nevada (leased by Apollo Global Management)
  • WaterView Casino & Hotel – positioned within Vicksburg, Mississippi (leased by Foundation Gaming)
  • 38 bowling alleys (leased to Bowlero)

Golf Courses

The corporation manages and owns a total of four golf courses:

Former Assets

External links

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