DECEMBER 30th
MGM Resorts Sells Circus Circus Hotel & Casino for $825 Million
Lodging and Casino Giant Shedding Assets to Pay Down Debt
An affiliate of Treasure Island owner Phil Ruffin bought Circus Circus. (MGM Resorts International)

MGM Resorts International has officially completed the $825 million sale of the half-century-old Circus Circus Hotel & Casino on the Las Vegas Strip.

The sale of the hotel, casino and 37 nearby acres at 2880 S. Las Vegas Blvd. sold to an affiliate of billionaire hotel mogul and Treasure Island owner Phil Ruffin, who also owns a 50% stake in the Trump International Las Vegas Hotel, according to a statement by MGM Resorts International.

Circus Circus Hotel has nearly 3,800 rooms.
MGM Resorts first announced the sale of Circus Circus and the Bellagio on Oct. 15. The price for Circus Circus includes $662.5 million in cash and a $162.5 million note due in 2024, according to MGM Resorts.

A unit of private equity giant Blackstone Group said in late October it planned to buy a 95% stake in Bellagio Resort & Casino in Las Vegas in a sale-lease deal valued at $4.25 billion, a sign seen as a positive for U.S. gaming properties because Blackstone's entry into gaming validates the model of real estate investment trusts owning casinos.

MGM Resorts is pursuing an "asset light" strategy as it works to raise cash, pay down debt, focus on its core business and increase shareholder value, the hospitality and entertainment firm said in a recent statement announcing the closing of the Circus Circus sale.

American hotelier and casino owner Jay Sarno and investor Stanley Mallin opened Circus Circus as a casino only in 1968. The distinctive pink-and-white attraction featured a giant circus tent with daily acts and added several hotel towers over the decades, increasing its footprint to 3,773 rooms and nearly 750,000 square feet.

The sale is subject to "final purchase price adjustments," MGM Resorts said. The company could not be reached for details on the potential price adjustments.