Advertisement

Circus Circus sold for $825M, MGM Resorts announces

Bookmark this
October 16, 2019 By Bailey Schulz

TI owner Phil Ruffin is the new ringmaster of Circus Circus.

MGM Resorts International on Tuesday announced the sale of the family-friendly property to the owner of TI for $825 million. The transaction is expected to close by the end of the year, and includes the 5-acre Adventuredome amusement park, a 10-acre RV park and 37-acre festival grounds.

The Las Vegas Review-Journal reported on the sale last month, after sources revealed that Ruffin and MGM had reached a handshake agreement on Sept. 12 for Ruffin to buy the hotel-casino, along with the Las Vegas Festival Grounds parcel. The multi-use entertainment venue sits on the southwest corner of Las Vegas Boulevard and Sahara Avenue.

MGM CEO Jim Murren told the Review-Journal that Circus Circus was “not strategic to our long-term vision” and that Ruffin “has some ambitious plans” for the north Strip resort, though he did not specify what the new owner has in mind.

Asked what will happen to the resort’s employees, Murren said they “will become employees of Mr. Ruffin.”

According to the Tuesday statement, the sale is part of MGM’s “asset-light strategy” meant to maximize value for shareholders.

“MGM Resorts has engaged in an exhaustive process to evaluate its owned real estate,” Murren said in the release. “The Company expects to utilize the proceeds from this transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility.”

This isn’t Ruffin’s first purchase from MGM. In December 2008, he made a deal to buy TI — then known as Treasure Island — from the company for $775 million. His purchase of Circus Circus is set to comprise $662.5 million paid in cash and a $162.5 million note due 2024, according to the statement.

“Circus Circus has anchored the north end of the Las Vegas Strip for over 50 years, and I am excited to add it to my casino portfolio,” Ruffin said in the statement. “I have tremendous respect for Jim Murren and the MGM team, and my relationship with them goes back to my friendship with Kirk Kerkorian and continues to this day.”

The property has been a gold mine for MGM over the years. Between 2015 and 2017, it posted the fastest percentage growth in average daily room rate and cash flow among MGM’s Strip resort properties. It made about $65.9 million in net revenue last quarter. According to the statement from MGM, Circus Circus reported a cash flow of $62 million for the 12 months ending June 30.

The 3,767-room property sits on a plot of about 60 acres near Sahara Avenue on the north side of the Strip, near ongoing projects including Resorts World, the Drew Las Vegas and the Las Vegas Convention Center. It’s known for its indoor Adventuredome amusement park and 10-acre RV lot, the only one of its kind on the Strip.


Recent Articles

Digging begins for Las Vegas Convention Center people-mover system

Digging begins for Las Vegas Convention Center people-mover system

in Future Las Vegas, News

With the flip of a switch Friday, Clark County Commissioner Larry Brown may have turned on a new era of transportation technology.

November 15, 2019 By Richard N. Velotta

CD Young's Karate in Henderson - Vegas Born From Family and Leadership

CD Young's Karate in Henderson - Vegas Born From Family and Leadership

in Sponsored Content, Best Of News

In 2008, CD Young took a leadership class at Disneyland where he was asked to draw out his dream on a piece of paper. He drew a picture of his future karate studio.

November 14, 2019 By CD Young's Karate

‘Masquerade Show in the Sky’ gave Mardi Gras vibe to Las Vegas

‘Masquerade Show in the Sky’ gave Mardi Gras vibe to Las Vegas

in Entertainment News

Pump a few tanks of helium into a Mardi Gras parade, and the result pretty much would be what Rio guests saw hourly several times a night when the hotel’s “Masquerade Show in the Sky” took flight.

November 14, 2019 By John Przybys

After Carnegie Deli is gone, here are 5 other Las Vegas delis to try

After Carnegie Deli is gone, here are 5 other Las Vegas delis to try

in Food

The announcement this week that Carnegie Deli at The Mirage will close February hit hard for fans of both the New York City original and its local offshoot.

November 14, 2019 By Al Mancini

Advertisement

Must Read Articles

Get Locked Down in Vegas' #1 Escape Room

Get Locked Down in Vegas' #1 Escape Room

in Sponsored Content, Best Of News

It’s not just about solving the problems in one hour or less, but testing the visitors problem-solving skills, mental finesse and intelligence.

October 31, 2019 By Lockdown Escape Rooms

Barx Parx creating lasting impact on the dog community

Barx Parx creating lasting impact on the dog community

in Sponsored Content, Best Of News

Barx Parx is more than a doggy daycare, but also a destination. They offer kennel-free puppy sleepovers, training and event rentals for nearly any party dog owners can think of to celebrate their four-legged friends.

November 8, 2019 By Barx Parx

The Photo Guys are keeping Las Vegas schools smiling

The Photo Guys are keeping Las Vegas schools smiling

in Sponsored Content, Best Of News

Getting a kid to smile isn't always easy. The Photo Guys create a fun, safe environment so kids can feel comfortable and be themselves.

November 7, 2019 By The Photo Guys

Advertisement