In this file photo, the Tropicana Las Vegas Hotel and Casino stands in Las Vegas, Nev. on Oct. 1, 2011.Ronda Churchill/Bloomberg
Penn National Gaming has reached a definitive agreement to buy the Tropicana casino and hotel resort in Las Vegas for US$360-million from a partnership between Alex Yemenidjian and Toronto-based Onex Corp.
Onex Corp. says its portion of the proceeds will be about US$50-million. The company's website says the private equity firm made its initial investment in Tropicana in May 2009 through a fund it manages.
Penn National noted in its statement from Wyomissing, Pa., that Tropicana Las Vegas has completed $200-million of property upgrades over the past four years, including a renovation of all guest rooms, as well as some of the public spaces.
The entertainment complex is on 35 acres (14 hectares) that includes tropical-themed beach area and spa, a 1,200-seat theatre, the 300-seat Laugh Factory comedy club and nearly 1,500 guest rooms.
"The planned acquisition of Tropicana Las Vegas establishes a strong presence on the Las Vegas Strip for Penn National Gaming, fulfilling an important long-term strategic objective for the company," said Timothy Wilmott, Penn Nationals' CEO.
As of the end of March, Penn National operated 26 facilities in 17 jurisdictions, mostly in the United States. In total they had 31,000 gaming machines, 759 table games and 3,100 hotel rooms.