Over the past year, several of the biggest and most popular hotel-casinos in Las Vegas have been sold. Many companies are now focused on selling properties and reinvesting the money earned into new properties domestically and abroad. This week, rumors of a Las Vegas Tropicana sale began to circulate.
As of now, these are still just rumors. Penn National Gaming, which owns the hotel-casino, has not officially confirmed this sale. Today, we’re going to talk about the history of this popular venue, and why it could soon be sold.
Let’s get into it!
History of the Tropicana Las Vegas Hotel & Casino
For decades, the Tropicana in Las Vegas has been a popular venue for tourists looking to save a little money. Its prices are fantastic, yet the hotel still offers a fantastic casino floor and some solid amenities. It’s impressive, considering it’s been around since 1957.
Back in 1955, Ben Jaffe came up with plans to open a new venue on the Las Vegas Strip. Before long, construction began on this venue and in 1957, it officially opened up. Over the first few years of opening, this property changed hands several times. Las Vegas city officials raised concerns that the owners had ties to organized crime.
By the 1970s, the Tropicana Las Vegas was struggling financially. Major hotel-casinos such as Caesars Palace were attracting the majority of visitors. By 1978, mob activities once again took over Tropicana.
Columbia Sussex acquired Aztar, which owned Tropicana Las Vegas, in 2007. The company then announced a massive $2 billion renovation which was scheduled to be completed in 2010. The financial crisis eventually put a hold on these plans.
In August of 2015, Penn National Gaming purchased this hotel-casino for $360 million. Hope was that this company could finally turn things around. It now appears another sale is on the horizon. Rumors of a Las Vegas Tropicana sale have been circulating for the past few days.
Is the Las Vegas Tropicana Sale Taking Place in 2020?
This isn’t the first time people have speculated about a Las Vegas Tropicana sale. This hotel-casino continues to struggle against some of the other, larger venues in the city. Rumors of this sale first appeared back in October.
This week, Vital Vegas announced that the sale was nearing completion. Officials within Penn National Gaming refused to comment on the rumors. Nevertheless, many are claiming that this sale will be completed sometime in 2020.
If this sale is completed, it will be the first Las Vegas Strip venue sale of 2020. As we already mentioned, Penn National acquired the property in 2015 for $360 million. Analysts claim that the company could earn $700 million from a Las Vegas Tropicana sale.
It’s still unclear which company will purchase this venue. Several major companies have expressed interest in acquiring a Las Vegas Strip property.
Penn National Gaming is still dealing with billions of dollars in liabilities. Selling the Tropicana could help to put a serious dent in this debt. We’ll need to wait and see whether or not the company decides to officially put this venue on the market.
More Las Vegas Strip Properties Are Coming in 2020
The Las Vegas Tropicana sale seems highly likely for 2020. This is probably not going to be the only Las Vegas Strip sale taking place this year. Based on the way things have been going, there will be several more of these sales that take place in 2020.
MGM Resorts International is still considering more property sales. Last year, this company sold both Circus Circus and The Bellagio. The latter earned the company $4.2 billion, making it the largest hotel-casino sale in Las Vegas history.
Officials within MGM Resorts claim they are interested in putting more of their major venues up for sale soon. This company is focused hard on breaking into Japan. In order to do this, the company needs capital and property sales are the best way to acquire the money.
The Las Vegas Strip is changing fast. Over the next few years, several brand new hotel-casinos will open here. It’s an exciting time for locals and tourists in the city.
Stay tuned for more Las Vegas casino news over the next few months!