Sheraton parent puts Tunica casino on market

Tuesday, June 3, 1997 | 11:32 a.m.

Sheraton's $70 million casino is located just south of the DeSoto County line in northern Tunica County.

ITT Corp., Sheraton's parent, has been shedding assets not central to its main businesses to drive up its stock price and hold off Hilton.

Last December, Hilton bought Bally Entertainment Corp., which has casinos in Mississippi and Louisiana.

In January, Hilton Hotels launched its $6.5 billion takeover bid for ITT in the hopes of merging the two companies' hotel and gaming business. ITT also owns Caesars World casinos.

About that same time, rumors began that the Sheraton Casino was on the market.

Last week, Sheraton officials told the Mississippi Gaming Commission that they wanted to sell the Sheraton in Tunica and the Desert Inn in las Vegas.

ITT spokesman Jim Gallagher said the company wanted to focus on the Sheraton Hotel chain and the Caesar's Palace properties.

Gallagher said the time-line for the Tunica operation was "as soon as possible and at the best possible price.

Gallagher said the competition in Tunica has changed.

"While our riverboat casino operation is profitable, it is far less profitable than it was a year ago," he said.

Sheraton has a $15 million hotel under construction at its Tunica site.

Sheraton is the second casino up for sale in Tunica County.

Two weeks ago, Harrah's Entertainment closed its original Harrah's Casino in Tunica to concentrate on the larger Mardi Gras casino. Harrah's is looking for a buyer for the smaller property.

"Ours is a smaller, more intimate property, if you will, that is different from the larger ... Sheraton," said Harrah's spokesman Ralph Berry.

Harrah's Casino cost $30 million when it opened in Tunica in November 1993.

In April 1996, Harrah's Entertainment opened its Mardi Gras casino. Most of the investment went to remodel and acquire the former Southern Belle casino.

"In the last year, we have had some different groups come in and kick the tires. Nothing has come together as of yet," Berry said.