Daily News Poker News Online Gaming News Investor News Vegas News Featured Articles
Strategies & Tips Books & Movies
Gaming Life Gaming Tips Comps & Promos
Vegas News
HOME > VEGAS > Vegas News > Witkoff acquires Fontainebleau on Las Vegas Strip for $600 million
RELATED PARTNER LINKS

Witkoff acquires Fontainebleau on Las Vegas Strip for $600 million

31 August 2017

(PRESS RELEASE) -- Witkoff, a global real estate development and investment firm, together with New Valley LLC, an investment company owned by Vector Group, today announced that they have acquired the significantly undervalued resort hotel located at 2755 Las Vegas Boulevard South in Las Vegas (formerly known as the Fontainebleau), for $600 million.

The acquisition, which was acquired at a substantial discount to replacement cost, a core part of Witkoff's investment strategy, marks the Company's foray into the supply-constrained and fundamentally strong Las Vegas market. Witkoff spent four months conducting its due diligence on the resort and market prior to the acquisition and has identified numerous ways to unlock the significant underlying value of the property to generate strong returns for its business and the Las Vegas community.

"2755 Las Vegas Boulevard South is one of the best physical assets in the country, which is one of the reasons we were attracted to it," said Steve Witkoff, Chairman and Chief Executive Officer of Witkoff. "Furthermore, the resort is ideally located on the Las Vegas Strip, directly across from the Las Vegas Convention Center, which is in the midst of a $1.4 billion expansion and renovation. At the basis, we acquired a well-designed, structurally sound integrated resort at a significant discount to both replacement cost and the implied public market valuations of comparable Las Vegas Strip resorts. We look forward to applying our industry-leading value-enhancing platform to this property to unlock its true growth potential."

Mr. Witkoff continued, "Las Vegas is one of the strongest lodging markets in the country given its highly favorable dynamics. RevPAR and EBITDA growth continue to accelerate and there has been no new supply since 2010."

As Witkoff continues to expand its portfolio, the Company will identify similar undervalued assets in high-barrier-to-entry growth markets with a multitude of demand generators that can be acquired at significant discounts to replacements costs.

 
RGT ONLINE SHORTCUTS

> Latest Headlines
   The stories that are the news.

> Daily News
   In depth coverage of the news that
   affects the gaming enthusiast.

> Featured Articles
   Articles by RGT's featured writers.

> Vegas News
   Tales from Sin City.

> Investor News
   Press releases and Investor info.

> Casino City's Online Poker Directory
   The web's most comprehensive online
   poker directory.

> Advanced Search
   Check our archives for past articles.

FREE NEWSLETTER
Sign up for Casino City's Newsletter and a Chance to Win an exciting Casino City Prize
CONTACT RGT ONLINE  |  EDITORIAL STAFF  |  SITE MAP  |  CASINO CITY  |  AUDIOVEGAS