Acquisitions & Hotel Openings

Penn National Gaming Purchases M Resort Debt

October 11, 2010 - Penn National Gaming, Inc. (Nasdaq: PENN) announced today that it has purchased all of The M Resort LLC bank debt, plus $160 million of subordinated debt formerly held by MGM Resorts International, which represents all of the outstanding debt of M Resort, from Bank of Scotland plc, a unit of Lloyds Banking Group, for $230.5 million.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "This transaction represents a great opportunity for Penn National, M Resort, its customers and employees as we address the financial uncertainty and debt burden which has created an overhang on M Resort's operations. The M Resort is a beautiful, fresh, upscale locals and destination-oriented casino resort which provides an excellent customer experience. M Resort is located ten miles from the Las Vegas Strip with access to I-15 and in close proximity to several master-planned communities.

"M Resort is a unique, differentiated property that we expect will continue to improve its operating results even without the benefit of a rebound in the local Las Vegas economy. Longer-term, the core attributes which contributed to the growth of Las Vegas into one of the world's pre-eminent entertainment destinations including its favorable climate and low taxes, combined with Penn National's growing database of 12 million regional gaming customers, many of whom already visit Las Vegas, will further benefit M Resort and the local economy."

Opened in March 2009, the M Resort Spa Casino is situated on over 90 acres on the southeast corner of Las Vegas Boulevard and St. Rose Parkway. The resort features over 92,000 square feet of gaming space including 1,900 slot machines, 64 table games, 14 poker tables and a race and sports book. M Resort also offers 390 guest rooms and suites, nine restaurants and five destination bars, more than 60,000 square feet of meeting and conference space, a 4,700 space parking facility, a state-of-the-art spa and fitness center and a 100,000 square foot events piazza. M Resort's master plan includes the potential to develop up to one million square feet of retail and a multi-screen digital movie entertainment complex.

Wachtell, Lipton, Rosen & Katz acted as legal advisor, and Miller Buckfire & Co., LLC acted as financial advisor, to Penn National Gaming in connection with the transaction. Katten Muchin Rosenman LLP acted as legal advisor, and The Blackstone Group acted as financial advisor, to Bank of Scotland plc in connection with the transaction.

About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-three facilities in sixteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National's operated facilities feature over 27,500 gaming machines, over 500 table games, over 2,000 hotel rooms and over one million square feet of gaming floor space.

Penn National Gaming recently opened Maryland's first casino and added table games to its facilities in West Virginia and Pennsylvania. Through a joint venture, Penn National is developing a full casino at Kansas Speedway in Kansas City, which is anticipated to open in the first half of 2012, and is also developing casinos in Toledo and Columbus, Ohio, with openings targeted for 2012. The Company recently agreed to establish a joint venture (subject to final approval by the Texas Racing Commission and the satisfaction of certain other closing conditions) to own and operate pari-mutuel operations in Texas, including the Sam Houston Race Park in Houston, Texas, the Valley Race Park in Harlingen, Texas and a planned racetrack in Laredo, Texas.

Coming Up In The June Online Hotel Business Review


Feature Focus
New Trends in Hotel Architecture and Design
On any hotel design project, architects are generally serving at least three masters - the owner/developer, the hotel operator, and the general public who will utilize the hotel - and each have their own goals, objectives and demands. The owner/developer is concerned with brand standards, the target market and the hotel's locale, while the operator is concerned about achieving the highest possible revenue through efficient design. The public is demanding that architecture and design be fully integrated into the guest experience, based on prevailing tastes and preferences. The architect's role is to respond professionally and efficiently to meet the demands of all and to develop a unified solution. Though each project has its own prerequisites and obligations, there are some general design trends which seem to be prevalent across the industry. First, there is an increased emphasis on the importance of the lobby. The principle here is that first impressions matter and that a hotel has only a few minutes to convince a guest that they have made the right decision. Hotel lobbies are being completely re-imagined - from eliminating front desks altogether to turning lobbies into warm, intimate social spaces, replete with fireplaces and comfortable furniture. There is also an increasing use of ambient natural light, even in large spaces like ballrooms and meeting rooms. In addition, there is greater emphasis on incorporating the distinctive attributes of any given location into the hotel design, which guests are defining as central to their experiences. The June issue of the Hotel Business Review will report on all these exciting developments in the fields of architecture and design.
In this issue...
Experiential Design Across All Sectors
By Ellis Katz, Principal, John Portman & Associates
Challenges of Contemporary Design in Historic Buildings
By Gary Meadows, President, HCI Architecture, Inc.
Ideal Meeting Spaces Should Offer Flexibility, Flexibility and Then Some
By Ronald M. Lustig, Design Architect/Principal, Earl Swensson Associates, Inc.
The Hotel Lobby
By Jennifer Skaife, Senior Associate, DiLeonardo
PLUS: Keeping an Eye on the Return on Design; Check In To the Future; L'AND Vineyards Wine Resort; How to Preserve Architectural Detail; Catering to Women in Hotel Design; Sustainability Retrofits, and much more.