Caesars Entertainment executives say they’re looking through a variety of plans to invest and build as the gaming giant prepares to put the Chapter 11 reorganization of its largest operating subsidiary behind it.
“It’s fair to say we’ve got a lot of time to plan and look at projects outside of Las Vegas,” President and CEO Mark Frissora said. “We’ve got a pretty good list of targets. We can start talking about that once we emerge.”
Speaking on a conference call with analysts to discuss the company’s first-quarter results, he said the Las Vegas Strip also will figure prominently as the company refines a post-bankruptcy strategy for its various operating units.
“We have lot of plans?plans that are well-defined, great projects that should have nice, significant returns,” he said. “It’s stuff near and dear to our heart.”
“We have sizable land holdings on the east side, some 80-90 acres,” said CFO Eric Hession, who joined Frissora on the call. “And we also own seven acres of undeveloped land in front of Caesars Palace, all of which is prime for potential development, from additional convention space to retail to other offerings our customers would desire.”
Nasdaq-listed Caesars reported a net loss of $524 million for the quarter, or $3.71 per share, mainly as a result of $466 million in accrued costs from the restructuring of Caesars Entertainment Operating Co.
CEOC is set to emerge from federal bankruptcy protection after more than two years as parent Caesars Entertainment and creditors put the finishing touches on a wide-ranging settlement that will free the subsidiary of most of its $18 billion of debt and split it into a resort management company and a real estate investment trust.
The net loss aside, the operations side is doing well, management said, pointing to “strong growth in hotel revenues fueled by a double-digit percentage increase in Las Vegas cash ADR. These gains reflect the positive impact of our investments in property renovations.”
To build on those gains, 7,000 more rooms are slated for improvements, Frissora said, along with reinvestments in the physical plant at Caesars Palace and the company’s other Las Vegas properties.
