Executives from Caesars Announce Post-Bankruptcy Plans
After a 3-year effort to overcome bankruptcy, Caesars has finally emerged victorious and is now looking to achieve significant growth. Executives from the company spent time with institutional investors sharing details about Caesars’ post-bankruptcy future.
Mark Frissora, President & CEO of Caesars, spoke to the investors for the first time after the merger between Caesars Entertainment Operating Company Inc. and Caesars Acquisition Company. As part of his address, he covered a range of subjects, but, primarily focused on the growth. He implied that Caesars would now move ahead and this would likely include renovations and entertainment acquisition.
Frissora called it the “next chapter” in Caesars’ story and added that it could only happen with the help of everybody involved. He also thanked the investors for their contributions so far to helping Caesars become a company of reduced debt, well-capitalized assets, healthy cash flow, continuous improvement, and leadership.
As stated earlier, growth remained the major topic at the meeting. Though Frissora did not offer clear details on each plan, there were some that he spoke more of.
This included the current renovation of around 10,000 hotel rooms in Las Vegas and the hiring of new musical entertainers and celebrity chefs.
Caesars is ranked as no. 3 in terms of live entertainment. The group has performers such as Elton John, Britney Spears, Celine Dion, and Jennifer Lopez already under contract. Other than that, they also pay $13.5 million to magicians Penn & Teller every year for their continued performance at the Rio.
There is also a plan to construct a 300,000 square-foot convention center near the High Roller.
Other key developments include 50 acres near Bally’s in Paris, 39 acres near The Linq, and 7 acres right in front of Caesars Palace. There are also plans to expand beyond the US into locations such as Brazil, Japan, and South Korea.
Route 91 tragedy
Frissora also spoke about the recent Route 91 shooting incident that occurred at MGM Mandalay Bay. The incident had impacted businesses across Las Vegas. However, Frissora said that things were looking brighter and that businesses would jump back to normal soon enough.
He attributed the drop in Asian visitors to their cultural view of mourning and respecting the dead. The drop in Asian visitors negatively impacted Asian play. Overall occupancy rates had also dipped as a result of the shooting.