http://www.chron.com/cs/CDA/ssistory.mpl/topstory2/3024322 Landry's bets $140 million on Las Vegas casino By DAVID KAPLAN Copyright 2005 Houston Chronicle Landry's Restaurants is getting into the gambling business after reaching a deal with the owners of the Las Vegas hotel-casino the Golden Nugget. Landry's shares surged more than 12 percent on the news. The Golden Nugget is the biggest of 14 hotel casinos in downtown Las Vegas. The facility has 40,000 square feet of gaming and three towers containing 1,907 guest rooms. Houston-based Landry's will pay Poster Financial Group $140 million in cash and take on $155 million in debt. For months, rumors swirled over what Landry's intended to do with $400 million raised through a debt offering. In late December the Chronicle reported that Landry's CEO Tilman Fertitta was eyeing Las Vegas casinos. The casino industry has been booming. At that time, Riviera Holdings, owner of the Riviera Hotel & Casino in Las Vegas and the Black Hawk Casino in Colorado, saw its stock climb over speculation that Landry's was planning a takeover. Landry's acquisition of the Golden Nugget is expected to close within a year. Landry's owns more than 300 restaurants, including Landry's Seafood House, Joe's Crab Shack, Rainforest Cafe and Saltgrass Steak House, as well as the Kemah Boardwalk, Downtown Aquarium and Inn at the Ballpark in Houston. ``The Golden Nugget is the premier property in downtown Las Vegas, has outstanding brand recognition across the country, and is a perfect fit for us,'' Fertitta, said in a prepared statement. Poster Financial Group is owned by Timothy Poster and Thomas Breitling, the founders of travel Web site Travelscape.com, which was later sold to Expedia. Poster and Breitling bought Golden Nugget properties in downtown Las Vegas and Laughlin in June 2003 for $215 million from MGM Mirage Inc. They later sold the Laughlin property to Barrick Gaming Corp. for $31 million. Last year, the downtown property suffered from poor cash flow, a measure of a casino's profitability. Gambling analysts said it had been underperforming because the pair had embarked on a risky strategy of luring high rollers who could expose the casino to serious losses. Analysts said the bet didn't pay off and the casino's bottom-line took a big hit. Fertitta called it unlikely that Landry's would cater to high-rollers unless enough would play so that averages could work in the casino's favor. ``Our philosophy will be a little bit different,'' he told The Associated Press. Fertitta said he'd like to expand the property; and said Landry's was happy with management currently in place. He said he thought the Golden Nugget could generate cash flow of $40 million a year. Poster and Breitling had also decided to take part in the Fox reality television show, The Casino. Created by Mark Burnett, the program turned out to be a bust and portrayed the casino in an unflattering light. The show was not renewed. Now the two are getting out at a time when casinos are being valued at record amounts. ``This sale is designed to capitalize on the tremendous demand for casino properties in Las Vegas and to enhance the ability of our company to participate in various business opportunities,'' Poster said in a news release. Landry's shares rose $3.54, or 12.5 percent, to close at $31.95 in trading today on the New York Stock Exchange. Its shares are up from a 52-week low of $24.75 in late October. Tilman Fertitta is the cousin of Frank and Lorenzo Fertitta of Station Casinos Inc., in Las Vegas. Before taking control of the casino, Tilman Fertitta will have to get approval from Nevada gambling regulators. Chronicle reporter Tom Fowler and the Associated Press contributed to this article.
The Landrys group are CRAZY... It reminds me of the guy in New Orleans that started out with Copelands then tried to buy up everything and anything that was for sale... He bought Popeyes and tons of other small chain restaurants and before he knew it he has so many loans for all his buying he wasnt making money fast enought to keep up with the loans and had to sell out... He was bigger than Landrys group at one point and now only has a few Coplands to left..
What? I don't follow. McLane has been the best owner, bar none, the Astros have ever had. He's doubled payroll in the past 5 years. He even raised payroll in anticipation of increased revenues. The Astros finally have enough money to compete on a regular basis. The problem with the Astros recently isn't their lack of FA signings but the weakness of the minor league system. Yes, Hunsicker traded away some talent but overall the system hasn't produced the last few years. Keeping Biggio around, as rumored, is hardly a reason to leave the team.
So that is what he was getting money together for. I remember people on this board speculating he was doing so to get the Astros. Damn, food is a good business.
Landry's is an amazing business model. The food at Joe's crab shack is like a frozen dinner from a supermarket, but they sell the sizzle. I would rather go hungry than eat at Joe's. The Landry's restaurants are not as bad as Joe's, but they do blow. He Fertitta (orchestrated the purchase of) bought La Griglia and the Grotto and they are still good... Vic and Anthony's steakhouse is among the best in Houston.. I have never been to las Vegas, and do not gamble, but lsn't the downtown area not as popular for gambling as the strip - newer - glitzier casino properties?
Yeah, I think downtown Vegas is where the old school casinos are. I have a feeling though that if anyone could really revitalize that area, it's this guy.
The Nug is definitelly the nicest hotel/casino in downtown, and the whole downtown area is underrated, IMO. It isn't the same as The Strip, but that isn't an entirely bad thing. I stayed at the Horseshoe during the downtown part of my Vegas trip last year, but I really liked spending time in the GN. They have the best pool downtown by far.
For the time being, yes. But from what I've heard from some of the Galveston upper elites is he didn't have the capital to buy the Astros right now. But in a few years if this investment pays off he could handly buy the Stros. Also he is the guiding hand in trying to bring gambling to Galveston and/or Kemah. This venture should give him some good experience. Touche' Tillman, touche'
Screw Fertata's... .I hope he takes his damn white tigers and sorry excuse for an 'aquarium' with him... the guy should just up and move all his crappy restaurants, ferris wheels, gimmicks and junk to Vegas. Maybe he can screw up and get his head chopped off and buried in the desert... can you tell I'm not a Ferblahblah fan??
I would think that owning a gambling business would prohibit one from owning a professional sports franchise. Am I wrong?
If the Maloofs (even though I think different brothers own the Kings and Palms) can do it, I'm guessing that if Fertitta could. I dunno though.
I am pretty sure there a lot more restrictions or they are watched closer but i don't think there is a problem with it.
The food is crappy, he ruined our skyline by adding a dinky ferris wheel and god awful neon. Why does an aquarium need white tigers? It's all just a trashy carny atmosphere with low grade food and cookie cutter restaurants.
