Penn National Gaming Inc., the parent company of the Tropicana, sold the real estate assets of the resort on the Strip to Gaming & Leisure Properties for $337.5 million in rent credits on Friday. Penn National will continue to run the resort, one of 41 it owns in 19 states.
Howard Stutz at CDC Gaming says the payment essentially eliminates “five months of rent payments to the REIT [real estate investment trust], roughly $68 million per month under the two master lease agreements between the companies.”
The Penn National deal also included a casino in Morgantown, Pennsylvania, that is under construction as well as the options to buy the operations of Hollywood Casino Perryville in Maryland.
The company paid its 26,000 employees their full wages and benefits across the country through March 31, but staff goes on unpaid furlough starting April 1.
• All Coverage of the Tropicana [ELV]
• All AM Intel [ELV]