The Strat Hotel, Casino & Tower Changes Hands
One of the most iconic landmarks on the Las Vegas Strip, The Strat Hotel, Casino & Tower, has officially changed owners in a significant deal worth $1.16 billion. This transaction, which includes six additional properties owned by Golden Entertainment across Nevada, highlights the rarity of sales on the Strip, where real estate values are extremely high.
The Buyer: VICI Properties Inc.
The buyer, VICI Properties Inc., is no stranger to the Las Vegas real estate scene. Known for owning a collection of the most prestigious names in Vegas—including Caesars Palace, MGM Grand, and The Venetian Resort—VICI is expanding its empire with this acquisition. The latest deal adds seven new properties, bringing VICI’s portfolio to over 6,000 hotel rooms, 4,300 slot machines, and 78 table games, making it a force to be reckoned with in the gaming market.
The Details of the Deal
According to VICI’s press announcement, the sale encompasses not only The Strat but also several properties that serve local Vegas residents, including Arizona Charlie’s Decatur and Boulder, two resorts in Laughlin (the Aquarius and Edgewater), the Pahrump Nugget Hotel & Casino, and the Lakeside RV Park & Casino. This strategic purchase reflects VICI’s ongoing interest in diversifying its asset base and cementing its influence within the local market.
Golden Entertainment’s Continued Role
While Golden Entertainment is offloading these properties, they will not be stepping away entirely. The company has signed a long-term lease to continue managing these venues, which will see them paying around $87 million annually for the next 30 years. This arrangement allows Golden Entertainment to maintain operational control while realizing significant value from the sale of their real estate assets.
Insights from Leadership
In the announcement, John Payne, President and COO of VICI Properties, expressed excitement about the acquisition: “VICI has sought exposure to the Las Vegas locals market since our inception, and we’re thrilled to acquire seven new assets across Nevada.” This sentiment underscores VICI’s strategic vision to expand their footprint in an area known for its bustling local gambling market.
Conversely, Blake L. Sartini, CEO of Golden Entertainment, described this deal as a pivotal moment for the company, citing that it "unlocks significant value in our real estate." This allows Golden to focus on operational improvements without the burden of property ownership.
The Future of The Strat
The Strat has had its share of ups and downs since its opening, most recently undergoing a $140 million renovation and rebrand in 2019. With VICI now in control, there is speculation about potential new investments or renovations aimed at enhancing its appeal. The landmark’s distinctive look and iconic status make it an important part of the Las Vegas landscape, suggesting a bright future under new management.
What This Means for Visitors
For those planning a visit to Las Vegas, immediate changes at The Strat and the other properties involved in the deal are unlikely. Golden Entertainment will still oversee day-to-day operations, so guests can continue to expect the same level of service and amenities as before. However, considering VICI’s reputation for investing in major destinations, visitors might see upcoming upgrades and renovations that breathe new life into The Strat and its sister properties.
This transition marks an exciting chapter for The Strat and the surrounding area on the northern end of the Strip. With its iconic observation tower and thrill rides, it continues to serve as a must-visit location for tourists and locals alike. As the real estate landscape evolves, the anticipation of enhancements and new experiences grows, promising to keep the spirit of Las Vegas vibrant and ever-changing.