LAS VEGAS Park Place Entertainment Corp. completed its acquisition of the Claridge Hotel & Casino in Atlantic City, NJ. The announcement was made following the May 30th approval of the acquisition by the New Jersey Casino Control Commission.
The Claridge, adjacent to Bally s Atlantic City, adds 500 rooms, 59,000 square feet of gaming space, a 600-seat theater and 1,200 parking spaces to the company s center-Boardwalk complex, which includes Bally s, Caesars and the Wild Wild West casinos. The company is currently designing an elevated connector between Bally s and the Claridge, which will include retail and meeting space.
Park Place paid a purchase price of approximately $65 million, representing a purchase multiple of 5.4x adjusted EBITDA of approximately $12 million for the year 2000. Park Place intends to keep the Claridge and will fold the property into its maintenance capital program, investing 5% of revenues in maintenance projects that help assure assets will produce maximum revenues. (6/1/01)