Caesars Entertainment Corporation announced yesterday that it has sold the Harrah’s New Orleans Hotel and Casino to its real estate spinoff Caesars Growth Partners as part of a $2.2 billion deal.
The other properties included in the transaction include Bally’s Las Vegas, the Cromwell and the Quad, also located in Las Vegas.
The deal is meant to help Caesars Entertainment restructure its corporate debt load. The company will receive $1.8 billion in net cash proceeds from the transaction, plus assumed debt of $185 million and committed project capital expenditures of $223 million
“Since being taken private near the beginning of the global financial crisis, we have faced an incredibly challenging business environment and a highly leveraged capital structure. Despite these obstacles, we have invested significantly in the growth of our network and the enhancement of our assets while concurrently deploying a wide array of financial and operational tools to manage the company’s capital structure and create value,” said Gary Loveman, chairman and CEO of Caesars Entertainment.
The New Orleans Harrah’s Hotel features 26 stories and 450 rooms and wasbuilt with a budget of $125,000,000.
It features nearly 6,800 square feet of meeting rooms, workout facilities, a restaurant, and top-of-the-line suite accommodations, all within a building package consistent with the historical needs of New Orleans’ Warehouse District. A unique feature of this project is the complete restoration of the existing building located at 528 South Peters Street, which now serves as the dining area for the Hotel’s restaurant, Riche, and the 528 Jazz Club.
The hotel was designed by Manning Architects and Marnell Corrao Associates. Woodward Design + Build was the general contractor.