Caesars Completes $275M Sale of LINQ Promenade

Caesars Entertainment just sealed a $275 million deal, reshaping the Las Vegas Strip’s landscape.

The sale of LINQ Promenade, including the iconic High Roller, marks a significant financial move for Caesars.

Proceeds from the sale will help the gaming giant chip away at its massive $13 billion debt.

Learn how Caesars’ strategic asset sales are streamlining operations and paving the way for a stronger financial future.

Caesars Sells LINQ Promenade for $275M, Focuses on $13B Debt Reduction

Key Points:

1. Caesars sold the LINQ Promenade, including the High Roller Observation Wheel, for $275 million.
2. Proceeds from the sale were used to make a $275 million voluntary prepayment on its $13 billion debt.
3. LINQ Promenade remains a gateway to Caesars Forum, surrounded by major Las Vegas Strip resorts.

Caesars Entertainment Sells LINQ Promenade for $275 Million

Caesars Entertainment has officially closed the sale of the LINQ Promenade for $275 million, marking a critical milestone in its strategy to reduce its $13 billion debt. The buyers, a joint venture between TPG Real Estate and Acadia Realty Trust, now own the retail, dining, and entertainment hub located at the heart of the Las Vegas Strip.

The deal also includes the High Roller Observation Wheel, once the tallest observation wheel in the world, but does not encompass the surrounding hotels like the Flamingo and LINQ Hotel + Experience.

A Strategic Move Toward Debt Reduction

Caesars spent approximately $550 million to develop the LINQ Promenade, which opened in phases between 2013 and 2014. Despite selling the asset for half of its original cost, the transaction aligns with the company’s commitment to paying down its debt.

Concurrent with the closing, Caesars made a $275 million voluntary prepayment on its Term Loan B due in 2030, using the sale proceeds. Caesars CEO Tom Reeg has repeatedly emphasized debt reduction as the company’s top priority, stating:
“The sale of non-core assets is essential to strengthening our balance sheet and ensuring long-term growth.”

Key Features of LINQ Promenade

The LINQ Promenade serves as a major entertainment hub, featuring attractions like the Brooklyn Bowl concert venue, restaurants such as Yard House and Gordon Ramsay’s Fish & Chips, and a variety of retail outlets. It connects visitors to Caesars Forum, a large conference center, and sits between two flagship Strip properties: the Flamingo and the LINQ Hotel and Casino.

The centerpiece of the Promenade, the High Roller Observation Wheel, was unveiled in 2014. Standing at 550 feet, it held the title of the world’s tallest observation wheel until 2021, when it was surpassed by the Ain Dubai in the United Arab Emirates.

The Bigger Picture: Caesars’ Financial Strategy

This sale is part of a broader effort by Caesars to monetize non-core assets and strengthen its financial position. During its third-quarter earnings call in October, the company announced that additional asset sales could follow, though no further details were provided.

By divesting properties like the LINQ Promenade, Caesars aims to streamline its portfolio while focusing on high-performing assets and core operations. The sale also reflects a growing trend of joint ventures acquiring prime real estate on the Las Vegas Strip, underscoring the enduring value of these properties.

The sale of the LINQ Promenade is a pivotal step in Caesars Entertainment’s journey toward financial recovery. While the $275 million price tag represents a significant discount from its original development cost, the transaction underscores the company’s unwavering focus on debt reduction.

This strategic move not only helps Caesars tackle its $13 billion debt but also showcases its commitment to optimizing its portfolio. By focusing on core assets and leveraging high-value real estate sales, Caesars is positioning itself for long-term success in the competitive gaming and entertainment industry.

As Caesars continues to evaluate its portfolio, the LINQ Promenade sale signals a proactive approach to financial stability and operational efficiency. This deal reshapes the Las Vegas Strip’s landscape while reinforcing Caesars’ role as a key player in the gaming world.