Caesars Entertainment plans to sell a Las Vegas hotel early next year

T0809PARISLASVEGAS_C_HR [Credit: Caesars Entertainment]
The Paris Las Vegas, one of Caesars Entertainment's Las Vegas Strip hotels. Photo Credit: Caesars Entertainment

Caesars Entertainment reported a net loss of $233 million in the third quarter, as the company's balance sheet was weighed down by interest expenses and efforts to build up the Caesars Sportsbook digital-betting service.

To help pay down debt, the company plans to sell the real estate of at least one of its Las Vegas Strip hotels early next year.

Caesars currently owns and operates Caesars Palace, Harrah's Las Vegas, Flamingo Las Vegas, Bally's Las Vegas, The Linq, The Cromwell, Paris Las Vegas and Planet Hollywood. 

Rival company MGM Resorts International has sold several Las Vegas properties over the past two years while inking deals to continue operating the hotels. 

"We are looking at selling a Strip asset, expect us to put that in motion in the early part of 2022," Caesars Entertainment CEO Tom Reeg said. "We expect to be aggressive on the refinancing front in 2022 to lower the cost of debt, and it should add up to well in excess of $5 billion in cash to deploy in 2022. Some of that will be spent in digital, and some in capital projects that drive ROI, but the vast majority will be used to pay down debt." 

Caesars also expects to net $1.2 billion when it closes on the sale of non-U.S. assets of sportsbook operator William Hill. Last April, Caesars Entertainment announced the completion of its $4 billion purchase of William Hill, which was then rebranded to Caesars Sportsbook.

The Caesars Digital division, which includes the sportsbook, posted a third-quarter net loss of $193 million.

Caesars was purchased in 2020 by Eldorado Resorts, and the two companies merged, keeping the Caesars name. As of the end of the third quarter, the company is carrying $15.2 billion in debt. 

Hotels are profitable

Meanwhile, Caesars' Las Vegas and U.S. regional properties posted net income of $272 million and $239 million in the third quarter, respectively. 

"We are encouraged by booking trends, and we began to see conventions return to Vegas in the third quarter, representing 10% of room nights," COO Anthony Carano said. "That's a dramatic improvement over the first half of the year, and we continue to expect a gradual recovery in the segment."

Additionally, Reeg said Caesars properties are operating on a midweek occupancy cap because the company is struggling to hire enough housekeeping staff. 

"We are struggling across the country to hire enough guestroom attendants," he said. 

Caesars Entertainment's companywide revenue in the third quarter totaled $2.7 billion, up from $2.5 billion in the second quarter.

The company had returned to net profitability in the second quarter, logging net income of $71 million after reporting a net loss of $423 million in the first quarter.


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