Caesars Entertainment Breaks Ground on Atlantic City Meeting and Conference Facility
250,000-square foot Facility to Help Attract New Visitors
LAS VEGAS – (July 10, 2013) – Caesars Entertainment Corp., (NASDAQ: CZR) today announced it has begun construction on the largest meeting and conference facility in the Northeast. The project is intended to stimulate new visitation to the market, particularly mid-week.
“The development of this facility is a significant milestone in our efforts to collaborate with the state to reinvigorate Atlantic City and attract new segments of visitation to the market,” said Gary Loveman, Chairman, President and Chief Executive Officer of Caesars Entertainment. “We appreciate the leadership of Governor Christie and the state legislature in laying the foundation for revitalization of Atlantic City and investing in its future. The support of the New Jersey Casino Reinvestment Development Authority’s for this project is instrumental to its success, and we look forward to continuing to pursue ways to attract new visitors to Atlantic City.”
Atlantic City captures less than 1 percent of the $16 billion convention and meeting market in the Northeast U.S. The development of a state-of-the-art facility and Atlantic City’s proximity to New York, Philadelphia and other urban markets presents the opportunity to increase this share.
New Jersey Lt. Governor Kim Guadagno commented, “This is an important step toward the revitalization of Atlantic City and will help create jobs and attract more visitors to New Jersey. I am pleased that the NJ CRDA and Caesars Entertainment were able to partner to pursue this important project.”
Caesars plans to use $45 million of funds it previously contributed to the New Jersey Casino Reinvestment Authority and more than $80 million of equity to complete the $125.8 million project.
The 250,000-square-foot facility will have 125,000 square feet to host corporate meetings, complementing the Atlantic City Convention Center, which targets conventions and tradeshows. It will offer two 50,000-square-foot pillarless ballrooms, each divisible into as many as 27 separate breakout rooms, as well as additional breakout areas, grand promenades and dedicated banquet kitchens and support facilities. The new facility will be located on the southwest corner of the Harrah’s Atlantic City property, connecting seamlessly to the existing meeting space.
Caesars Entertainment Corporation is the world’s most diversified casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company. Since its beginning in Reno, Nevada, 75 years ago, Caesars has grown through development of new resorts, expansions and acquisitions and now operates casinos on four continents. The Company’s resorts operate primarily under the Caesars®, Harrah’s® and Horseshoe® brand names. Caesars also owns the World Series of Poker® and the London Clubs International family of casinos. Caesars is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. We are committed to environmental sustainability and energy conservation and recognize the importance of being a responsible steward of the environment. For more information, please visit www.caesars.com.
This release contains or may contain “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. The Company has based these forward-looking statements on its current expectations about future events. Further, statements that include words such as “may,” “will,” “project,” “might,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” “continue,” or “pursue,” or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements. These forward-looking statements are found at various places throughout this release. These forward-looking statements, including, without limitation, those relating to future actions, new projects, strategies, future performance, the outcome of contingencies such as legal proceedings, and future financial results, wherever they occur in this release, are necessarily estimates reflecting the best judgment of the Company’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors set forth above and from time to time in the Company’s filings with the Securities and Exchange Commission.
In addition to the risk factors set forth above, important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation:
• the impact of the Company’s substantial indebtedness;
• the effects of local and national economic, credit, and capital market conditions on the economy, in general, and on the gaming and convention industries, in particular;
• changes in laws, including increased tax rates, smoking bans, regulations or accounting standards, third-party relations and approvals, and decisions, disciplines, and fines of courts, regulators, and governmental bodies;
• the ability to recoup costs of capital investments, such as the proposed convention center in Atlantic City, through higher revenues;
• the effects of competition, including locations of competitors, competition for new licenses and operating and market competition;
• the potential difficulties in employee retention and recruitment as a result of the Company’s substantial indebtedness or any other factor;
• construction factors, including delays, increased costs of labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, and building permit issues;
• litigation outcomes and judicial and governmental body actions, including gaming legislative action, referenda, regulatory disciplinary actions, and fines and taxation;
• the effects of environmental and structural building conditions relating to the Company’s properties or development projects;
• acts of war or terrorist incidents, severe weather conditions, uprisings, or natural disasters;
• losses sustained as a result of natural disasters, including losses in revenues and damage to property, and the impact of severe weather conditions on the Company’s ability to attract customers to certain of its facilities, such as the amount of losses and disruption to the Company as a result of Hurricane Sandy in late October 2012; and
• the impact, if any, of unfunded pension benefits under multi-employer pension plans.
You are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.