Map of M Resort
Penn National Gaming Inc. today said it expects business to improve at its newly-acquired M Resort in Henderson, despite sluggish conditions in the Las Vegas locals casino market.
Wyomissing, Pa.-based Penn National received regulatory approval May 19 to acquire the resort. Penn National obtained the $1 billion M Resort by acquiring its outstanding debt for $230.5 million.
In announcing completion of the takeover, Penn National today said that since sending M Resort hotel offers to some of its highest-value players earlier this year, the M Resort has booked more than 1,300 incremental room nights. This increased occupancy at the 390-room property by almost 4 percent and contributed to first quarter property revenue of $39.8 million and EBITDA of $6.2 million.
EBITDA, a performance measure, means earnings before interest, taxes, depreciation and amortization.
Penn National also reported that in the 12 months ended March 31, M Resort recorded revenue of $159 million and EBITDA of $16.7 million.
These numbers compare to net revenue and EBITDA in 2010 at the competing, Station Casinos Inc.-managed, 495-room Green Valley Ranch Resort in Henderson of $169.8 million and $46.3 million.
Looking ahead for the M Resort, Penn National says it has 12 million gaming customers it can market the M Resort to.
“M Resort is a unique, differentiated property and we expect to continue improving its operating results even with a slow rebound of the local Las Vegas economy. Over time, we expect M Resort and the local economy to benefit from the core attributes that contributed to the growth of Las Vegas into one of the world’s pre-eminent entertainment destinations, including its favorable climate and low taxes. We are also confident that our operating discipline, rationalized approach to marketing and growing database of regional gaming customers, many of whom already visit Las Vegas, can further improve the property’s financial performance,’’ Penn National Gaming CEO Peter Carlino said in a statement, adding M Resort founder Anthony Marnell III will continue managing the property as president.