Harrah's Signs Agreement to Bring Caesars to Spain
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Harrah's Signs Agreement to Bring Caesars to Spain
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Category: Europe
This is a press release selected by our editorial committee and published online for free on 2005-12-01
World's largest casino entertainment company to open Spain's first large-scale casino resort as part of the master-planned El Reino development
Third international development announced this month highlights major global expansion of Harrah's brands into premier destinations
LAS VEGAS -- November 30, 2005 – Harrah's Entertainment, Inc. (NYSE:HET) today signed an agreement with El Reino de Don Quijote de La Mancha, S.A., to develop a Caesars casino resort in the master-planned El Reino community of Ciudad Real, Spain, 118 miles south of Madrid. Subject to all appropriate governmental approvals, Caesars will be Spain's first large-scale casino resort, complementing the other attractions of El Reino de Don Quijote, which will include hotels, golf courses, spas and entertainment, retail and residential development.
"Over the years, Europeans have traveled thousands of miles to immerse themselves in the unique Caesars entertainment experience. It's therefore a thrill and a privilege for us now to be able to bring Caesars to them," said Gary Loveman, chairman, chief executive officer and president of Harrah's Entertainment. "We look forward to joining forces with El Reino to develop a resort of distinction that will further increase the drawing power of this magnificent region."
The Caesars resort in Spain is anticipated to include many of the signature elements that have made Caesars Palace in Las Vegas the leading worldwide name in premium gaming. Guests will be able to indulge in a full variety of world-class gaming, dining, spa and entertainment options, all offering the lavish amenities associated with the Caesars experience. The preliminary project scope includes an 850-room luxury hotel, a 50,000-square-foot casino, a 3,000-seat Colosseum theater, a conference center, a 30,000-square-foot spa, and multiple restaurants, lounges, and bars. In addition, a lakeside Forum Shops retail center will be developed adjacent to the Caesars casino resort.
The announcement caps a month of new international Caesars and Harrah's developments. Earlier in November, Harrah's signed a letter of intent with Baha Mar Resorts, Ltd. and Starwood Hotels and Resorts Worldwide, Inc. to partner in a joint development to create a 1,000-acre destination beachfront resort, where Caesars will be the largest casino in the Bahamas. On Tuesday, Harrah's announced the signing of a memorandum of understanding with the Hit Group, Slovenia's largest casino operators, to pursue development of a luxury casino resort in Nova Gorica, Slovenia -- just across the border from Italy -- that also will offer spa, entertainment and retail amenities.
Harrah's is pursuing a number of other potential developments that would further expand its brands to premier destinations around the world. Notable among those proposals is a pending bid with international partners for the Marina Bay integrated resort site in Singapore that will include luxury accommodations, convention facilities, a cultural museum developed by Centre Pompidou, and exciting dining and entertainment offerings.
The agreement signed today in Ciudad Real, Spain, by Gary Loveman and Aurelio Alvarez, chairman of El Reino de Don Quijote de La Mancha, S.A., creates a joint venture, 60 percent owned by Harrah's and 40 percent by El Reino, to develop the casino, hotel, conference center, spa and associated entertainment facilities on 29 acres in El Reino. Subject to the completion of certain requirements, the development is expected to begin construction in late 2006. Harrah's and El Reino expect to invest approximately $670 million in the project.
The development is part of the first phase of El Reino. Certain infrastructure improvements have already been put into place, including upgraded roads, water and sewer, and one of the planned three golf courses. The master plan for the El Reino development includes an additional spa hotel, other accommodations, sports facilities, destination shopping and entertainment attractions.
El Reino is located near Ciudad Real, the capital of Ciudad Real province in the Castile-La Mancha region of Spain. It is in a rapidly growing area, with numerous excellent transportation links including a stop on the high-speed AVE rail line between Madrid (50 minutes away) and Seville (1 hour and 45 minutes away). The area, which includes Madrid and Toledo, has more than 9 million adults. Additionally, the Caesars casino resort is expected to draw visitors from across Europe.
Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment. Since its beginning in Reno, Nevada 68 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.
More information about Harrah's is available at its Web site — www.harrahs.com.
This release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" or "pursue," or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to, among other things, future actions, strategies, future performance and future financial results of Harrah's. These forward-looking statements are based on current expectations and projections about future events.
Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance of Harrah's may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein); ability to recover insurance proceeds; financial community and rating agency perceptions of Harrah's; the effects of economic, credit and capital market conditions on the economy in general, and on gaming and hotel companies in particular; construction factors, including delays, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; the effects of environmental and structural building conditions relating to our properties; the ability to timely and cost-effectively integrate into Harrah's operations the companies that it acquires, including with respect to its acquisition of Caesars; access to available and feasible financing on a timely basis; changes in laws (including increased tax rates), regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; the ability of our customer-tracking, customer loyalty and yield-management programs to continue to increase customer loyalty and same store sales; our ability to recoup costs of capital investments through higher revenues; acts of war or terrorist incidents; abnormal gaming holds; and the effects of competition, including locations of competitors and operating and market competition.
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Harrah's disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date stated, or if no date is stated, as of the date of this press release.
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