Las Vegas Hilton sale to Roski approved

Friday, Oct. 27, 2000 | 11:22 a.m.

CARSON CITY -- The purchase of the Las Vegas Hilton for more than $300 million by Edward P. Roski Jr. is being called an important step in Nevada's gaming history.

The state Gaming Commission Thursday unanimously approved the deal for Roski, a part owner of the NBA champion Los Angeles Lakers and the Los Angeles Kings hockey team.

Commission Chairman Brian Sandoval called it a "great day for Nevada" for someone of the stature of Roski to invest in gaming. Commissioner Arthur Marshall of Las Vegas said Roski has a "great business plan."

This purchase has been in the works since January and the final details on financing were not worked out until minutes before the commission considered the application.

The purchase will involve a $260 million first mortgage note, a $30 million note to Park Place Entertainment Corp. of Las Vegas, the seller of the Hilton, and $55 million in Roski equity.

Dennis Neilander, a member of the state Gaming Control Board, told the commission that final changes were minor and a new investigation into the finances did not have to be launched.

Roski is going to shun the high-rollers and concentrate on conventions and the travel and tour business. The high-end players, he said, will go to Park Place's Caesars Palace resort.

He noted there is a 1.3 million square foot expansion of the adjacent Las Vegas Convention Center, which should help the Hilton become an "outstanding success."

He will be allowed to continue to use the Hilton name and some of its services such as the room reservation system. It will be the only Hilton in Las Vegas since the Flamingo Hilton has dropped its "Hilton" name.

The timeshares on the 60 acres off Paradise Road in Las Vegas are not part of the purchase. But Roski plans a 2,000 room addition and additional parking garages.

The Hilton has 3,000 rooms now and is the eighth largest in the world.

The employees and the existing managers are staying at the Hilton, Roski said.

He already owns the Silverton hotel-casino off I-15 south of Las Vegas and plans a $600 million expansion at that site.