MGM to sell Circus Circus Las Vegas for $825 million to Phil Ruffin

MGM Resorts (NYSE: MGM) is a holding company that owns and operates casino resorts, dining, entertainment, retail, and other amenities.

MGM has signed a deal to sell its Circus Circus Las Vegas property for $825 million to Treasure Island owner Phil Ruffin.

MGM does not view Circus Circus as a core property, said Paul Salem (chairman of MGM’s real estate committee). MGM originally acquired Circus Circus Las Vegas during its acquisition of Mandalay Resort Group in 2005.

Originally opened October 18, 1968; Circus Circus Hotel & Casino on the Las Vegas Strip was built as a middle class family-fun vacation destination.  The Hotel & Casino has gaming, live Circus entertainment and The Adventuredome (a 5-acre indoor amusement park).

Ruffin said he would like to keep the Circus Circus cost friendly reputation intact. Ruffin, also owns Treasure Island and a stake in the Trump International Hotel on the Strip.

Number of rooms: 3,773
Total gaming space: 123,928 sq ft

Comparing the last three years’ performance of Circus Circus with the other Las Vegas Strip properties, Circus Circus’ EBITDA (Earnings before interest, tax, depreciation and amortization) margin is 5% lower than the average.




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