Caesars Entertainment says that it is still on track to sell one of its Las Vegas Strip properties in th coming months.
Said Caesars CEO Tom Reeg during Tuesday’s 4th Quarter earnings call:
“The next time we talk to you about a Strip asset sale, it will be to announce that sale.”
Caesars has been rumored to be selling a Las Vegas Strip property ever since El Dorado announced its merger with Caesars in 2019. But the COVID-19 pandemic delayed those plans as the company focused its efforts on bouncing back from the shutdowns experienced in 2020.
The company’s Strip properties include Caesars Palace, Paris Las Vegas, Planet Hollywood, The Cromwell, Flamingo, The LINQ, Harrah’s, and the soon to be rebranded Bally’s. Caesars has not announced which of those properties will be sold.
Las Vegas Continues to Recover
Caesars reported revenues of $2.6 billion and a net loss of $434 million for the quarter ending December 31, 2021. Those figures were better than the $1.6 billion revenues and $555 million net loss during the three-month period ending December 2020. It’s total of $9.6 billion in revenues for the entire 2021 also nearly tripled what it made in 2020.
Its occupancy rates for Strip properties during the 4th quarter of 2021 hit 86% with an even higher 95% occupancy during weekends. These figures suggest that the gambling and hospitality industry in Las Vegas continues to recover after the shutdowns that greatly affected profitability in 2020 and early 2021.
Cutting Back on Sportsbook Advertising
Last April, Caesars closed its acquisition of William Hill PLC in a transaction that was valued at around $ 4 billion. In August, they launched Caesars Sportsbook with a multi-million national advertising campaign with the hopes of capturing a significant portion of the sports betting pie in the United States.
With the company reporting a 21% market share in their latest month betting handle figures, Caesars said that it planning to significantly cut back on those marketing costs since the sportsbook has grown bigger than what it first anticipated.