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- CBRE Equity Research stays bullish on Las Vegas casino stocks after digesting the MGM Resorts (NYSE:MGM) announcement yesterday of a casino sale.
- Analyst John DeCree says the $1.075B sale of The Mirage Hotel & Casino by MGM Resorts (MGM) to Hard Rock International yesterday went off at a headline-grabbing 17X multiple based on 2019 EBITDAR of $154M and annual rent of $90M.
- The read-through of the transaction amount is that it highlights the desirability of Las Vegas casinos and underpins CBRE's bullish outlook for the Las Vegas Strip and property owners like MGM Resorts, VICI Properties (NYSE:VICI), Caesars Entertainment (NASDAQ:CZR) and Wynn Resorts (NASDAQ:WYNN).
- "With the Mirage setting a new bar for Las Vegas OpCo valuation, we can’t help but get excited about the prospects for CZR, which is planning to sell one of its Las Vegas resorts in early 2022, and WYNN, which is sitting on what is arguably the most valuable casino resort in Las Vegas, if not the country," observes DeCree.
- Read more details on the MGM casino sale.
- Dig into CBRE's stock coverage of the casino sector.