The agreement for the acquisition of Rocky Gap involves a total price of $260.0m (£219.9m/€260.1m). Vici will pay $203.9m to obtain ownership of the land and buildings associated with the property, while Century will acquire the operating assets for approximately $56.1m. This deal will result in the addition of Rocky Gap to the existing triple-net master lease agreement between Vici and Century, leading to an annual rent increase of $15.5m. Furthermore, the term of the Century master lease will be extended, providing a full 15-year initial base term, along with four five-year renewal options.
Rocky Gap, located in Flintstone, Maryland, is a comprehensive resort offering various amenities. It features a gaming floor spanning over 25,000sq ft with 630 slot machines and 16 table games. The property also includes 198 hotel rooms, five food and beverage venues, an 18-hole golf course, a 5,000sq ft events center, meeting spaces, and a spa. Recently, Rocky Gap has invested $10m in enhancing its hotel, slot machines, restaurants, and sports lounge, with potential plans for expanding the casino and hotel.
The completion of this transaction is subject to regulatory approvals and closing conditions and is expected to occur in mid-2023. Vici’s president and chief operating officer, John Payne, expressed excitement about expanding their partnership with Century, highlighting the latter’s expertise in integrating and operating similar high-quality regional resort assets. Payne stated that this transaction would bring value to both companies’ shareholders.
Upon finalizing the acquisition of Rocky Gap and the pending purchase of Nugget Sparks, which operates the Nugget Casino Resort in Nevada, Century’s portfolio of North American casinos will expand to 11. The co-chief executives of Century, Erwin Haitzmann and Peter Hoetzinger, view the addition of Rocky Gap as a significant achievement in their goal of acquiring prime US assets. They expressed their anticipation of working with the Maryland Lottery and Gaming Control Agency to obtain gaming approvals, as well as collaborating with the casino’s leadership and team members to ensure a smooth transition and a promising future for Rocky Gap.
