Caesars expects to sell one Las Vegas Strip property next year
LAS VEGAS (KSNV) — Caesars Entertainment expects to sell one of its Las Vegas Strip properties next year, the company's CEO said Tuesday.
The news came during an conference call to discuss Caesars' second-quarter earning results.
"We still expect to sell a Vegas Strip asset, a single asset, and I would expect that sale to take place in 2022," CEO Tom Reeg said when asked if the company was reconsidering its divestment plans.
Caesars' Las Vegas Strip properties are: Harrah's, Bally's, Paris, Flamingo, The Cromwell, Caesars Palace, Planet Hollywood and The LINQ.
Much of the call was devoted to discussing what Reeg called the "outstanding Las Vegas segment results" for Caesars in the second quarter, which came despite capacity and social distancing limits.
The company reported net revenue of $2.5 billion for the months of April, May and June, with a net income of $71 million.
Caesars said it posted all-time records in quarterly adjusted EBITDA and EBITDA margins, which measure net flow of cash before taxes and other expenses.
Reeg noted that while masks are once again required in Nevada due to a spike in COVID-19 cases, COVID-related restrictions were in place for much of early 2021.
"Remember that, particularly with mask mandates coming back in Nevada, remember the Las Vegas numbers that you're looking at included a little over two months of social distancing, restricted occupancy and masks, restricting occupancy in restaurants and on the casino floor plus masks, and we were able to put up the numbers that we put up in the quarter," he said.
He added that he expects the Las Vegas properties to remain somewhere above a 90% occupancy rate.
