Tropicana Las Vegas Sales Pitch Accelerates

CBRE, which is brokering the sale of the Tropicana in Las Vegas, says the Strip resort is worth “at least” the $360 million Penn National Gaming paid for it five years ago. The property has been for sale for several years.

Real estate investment trust Gaming and Leisure Properties Inc. (GLPI) is looking to sell the Tropicana Las Vegas. This came as no surprise, as the Tropicana has been unofficially on the market for the last few years, but Michael Parks, who is brokering the sale as head of CBRE Group’s global gaming division, provided more details.

Parks said no asking price has been set at this point, but he told the Las Vegas Review-Journal he believes the 1,470-room hotel casino, which occupies 35 prime acres at Las Vegas Boulevard and Tropicana Avenue, is worth “at least” the $360 million Penn National Gaming paid to acquire it five years ago.

GLPI has made no secret of its desire to sell the resort, which it took over after the pandemic hit for $307.5 million worth of rent credits and leased it back to Penn to operate.

There has been speculation that the Trop could be worth $400 million to $700 million, but that was before the pandemic overturned the lucrative dynamics that had governed deals on the Strip.

Macquarie Group gaming analyst Chad Beynon said, however, he believes there is still demand.

“Anytime it feels like we’re at the bottom and it’s the end of the world, that’s generally when buyers come out, and at least have conversations with the holders of some of these assets.”

Apparently, that what’s happening, according to Penn President and CEO Jay Snowden, who recently told analysts there had been “unsolicited interest” in the resort.

“We got another call two days ago with interest in potentially acquiring some or all of the landholdings there, so it’s very active,” he said.

The Tropicana, he added, is “extremely valuable.”