Owner Agrees to Las Vegas Hilton Sale

Casino operator Park Place Entertainment Corp. said it agreed to sell the Las Vegas Hilton to Los Angeles real estate developer Ed Roski Jr. for $365 million in cash, receivables and assumed debt. Roski, president and chief executive of closely held Majestic Realty Co., will pay $300 million for the property and equipment and about $6 million for working capital, Park Place and Roski said in a statement. The price includes $31 million in liabilities Roski will assume and $28 million in receivables Park Place will keep. The receivables are debts owed by high-rolling gamblers. The sale will allow Park Place to focus on marketing Caesars Palace Las Vegas to wealthy international gamblers. Park Place bought the Caesars World casino chain for $3 billion last year from Starwood Hotels & Resorts Worldwide Inc. Las Vegas-based Park Place said it will use proceeds from the sale of the Hilton to pay debt and buy back stock. Selling the Las Vegas Hilton will also allow Park Place to focus on its three other Las Vegas properties--Paris Las Vegas, the Flamingo Hilton and Bally’s Las Vegas. These properties are better located, near the busiest part of the Las Vegas Strip, analysts said. The 2,900-room Las Vegas Hilton is next to the Las Vegas Convention Center, about a mile off the strip. It had cash flow, or earnings before interest, taxes, depreciation and amortization, of $50 million in the 12 months ended in March. Roski, who said he plans to renovate the hotel, is the developer of Los Angeles’ Staples Center and co-owner of the Los Angeles Lakers and Los Angeles Kings. Shares of Park Place, which was spun off from Hilton Hotels Corp. last year, were unchanged at $12.13 on the New York Stock Exchange.