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Casino Royale Property Value

Last edit: HankTheDwarf on Sunday, 22nd January 2017 2:28 pm
Last response by vespajet 30th January 4:49pm

What do you guys think it's worth?

Considering who would be in the market (everyone in the world) I'm surprised after all these years no big player made them an offer too stupid to refuse. Maybe this is more of a VT/Vegas Gang discussion though. To me they're like the motor lodges in Anaheim that get dwarfed by a Disney mountain but refuse to sell.

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 Ellagio responded on Sunday, 22nd January 2017

I just hope they are making enough to keep blowing off any offers. Their existence saves me dozens of $$ every time I'm looking to get my drink on on the north strip. Or want to teach a newbie craps on the cheap.

 HedgedBettor responded on Monday, 23rd January 2017

Decent catch up on the value of Strip real estate here from the RJ:
http://www.reviewjournal.com/business/economic-development/developer-asking-30m-acre-site-strip

 vespajet responded on Monday, 30th January 2017

I'm guessing that Casino Royale is worth at least $125-150 million. I look at what the Riv sold for, what the Echelon site sold for as a bit of a guide. That part of the Strip, that piece of land could potentially fetch $45-50 million an acre if not more. The Elardis have other real estate holdings in Las Vegas that aren't casinos and Casino Royale remains their sole casino property. I'm sure Las Vegas Sands and Harrah's/Caesars Entertainment have made some sizable offers over the years. The Elardis will sell out when they're good and ready to do so.

 HedgedBettor replied on Tuesday, 24th January 2017

Why is this really such a good piece of property? The first problem is that the lot is too small. The Cosmo stands as a lesson in the mistake of trying to build too much resort on too little property. Given the parcel size and the neighbors (its really part of the same section of the block as Harrah's and The Linq), I don't think you can build a luxury property on Royale's land. If prevailing transactions on the strip are $4m-$7m then I cant' see how Royale's site gets more than $15m-$20m at the absolute max right now. Might be worth more as a going concern in the near term, don't know what the EBITDA of the property could be if you plugged it into a system like Penn's.

 vespajet replied on Wednesday, 25th January 2017

I'm thinking more along the lines of the property being acquired by one of their neighbors or by someone wanting to maintain Casino Royale as is as opposed to someone wanting to build a new resort.

 n580564x replied on Monday, 30th January 2017

@Hedgebettor I believe that the $4 to $7 million per acre price is for unimproved land. Just the fact that there is a building on the property I saw estimates of $34 million per acre, making @Vespajet's estimate very realistic.