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Riviera Sold To Investment Group Headed by Starwood for 211M Dollars

By Chuckmonster on Thursday, 6th April 2006 12:47pm
  » filed under Las Vegas  comments: 1


Casino operator Riviera Holdings Corp. (RIV.A: Quote, Profile, Research) on Thursday said it had agreed to be bought by a private investment group for about $211.5 million in cash, making it the latest company with a property in Las Vegas to come into investors' cross-hairs.

The investment group, Riv Acquisition Holdings Inc. -- which includes Starwood Capital Group Chief Executive Barry Sternlicht and Las Vegas real estate developer Brett Torino -- will acquire all outstanding shares of Riviera Holdings for $17 a share in cash, except those held by Chief Executive William Westerman.

Westerman had previously agreed to sell some stock to the investment group for $15 apiece, the company said. The group will also repay or assume about $215 million of Riviera's debt.

Riviera owns and operates the Riviera Hotel and Casino on the Las Vegas Strip and the Riviera Black Hawk Casino in Black Hawk, Colorado.



Comments & Discussion:

Their plan to invest in the property while keeping the Riviera name is astute. A lot of value is built into a 50+ year old brand, and too many other casino companies on the strip don't recognize that. I, for one, will give them some business simply for what I consider a smart business move.

Perhaps the folks at Boyd Gaming will wake up and dump the name "Echelon Place" in favor of building around the Stardust brand.

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