LV Hilton sold for $365 million

Tuesday, July 11, 2000 | 4:29 a.m.

Park Place Entertainment Corp. said Tuesday it agreed to sell the Las Vegas Hilton to Los Angeles developer Ed Roski Jr., owner of the Silverton hotel-casino, for $365 million.

Park Place said it expects to take a $32 million non-cash loss on the sale.

Analysts have speculated for months that the property would be sold because it competes with Caesars Palace for high-end customers. Park Place bought Caesars last year.

The property produces about $50 million per year in cash flow -- defined as profit before interest, taxes, depreciation and amortization and other non-cash charges.

"No shutdown of the property is planned and employees can expect continuity in their positions at the casino resort. Additionally, the sale is not expected to impact the proposed plans to extend the Bally's-MGM Grand monorail to the Las Vegas Hilton, as the buyer agrees with Park Place's position," Park Place said in a statement.

"The sale of the Las Vegas Hilton allows Park Place to consolidate its high-end gaming operations at the legendary Caesars Palace," said Arthur Goldberg, President and CEO of Park Place Entertainment. "We plan to use the proceeds of the sale to paydown debt and repurchase the company's common stock."

Park Place said Roski plans a significant increase in the number, variety and quality of dining, entertainment and retail offerings; a renovation of the casino and public space to include additional slots, remodeling of more than 1,000 hotel rooms and the 45,000 square-foot Villa Suites into a restaurant and nightclub venue; and possibly additional development including a timeshare development, up to 1,500 new hotel rooms and other projects on the property's undeveloped 30 acres.

Roski plans to market both to the locals market and the big convention market drawn to the Hilton by the adjacent Las Vegas Hilton, Park Place said.

Besides owning the Silverton, Roski conceptualized and developed the Staples Center in downtown Los Angeles. He is a co-owner of the NBA's Los Angeles Lakers and NHL's Los Angeles Kings.