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M Resort officially acquired by Penn National Gaming
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Duane Prokop/Las Vegas Review-Journal File Photo
A fire-and- water show is shown March 1, 2009, during the opening of M Resort. Penn National Gaming officially acquired the hotel-casino Wednesday. » Buy this photo
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LAS VEGAS REVIEW-JOURNAL
Penn National Gaming officially acquired M Resort on Wednesday after Nevada gaming regulators approved the deal last month.
The regional casino and racetrack operator, which is based in Wyomissing, Pa., took control of the 390-room hotel-casino after purchasing the debt covering the 2-year-old M Resort at a nearly 75 percent discount last October.
Penn National also announced that M Resort developer Anthony Marnell III, who built the hotel-casino at a cost of nearly $1 billion, would serve as president of the property. Marnell has no ownership in the resort.
Penn National spent $230.5 million to acquire M Resort's $860 million in debt in October. Company executives told state gaming regulators in May that Penn's ownership stabilizes the property's previously uncertain financial future.
"Through this transaction, M Resort has emerged as a financially sound, debt-free, upscale locals and destination-oriented casino resort with extensive high-quality amenities." Penn National Chief Executive Officer Peter Carlino said in a statement.
M Resort sits on 90 acres at the southeast corner of Las Vegas Boulevard and St. Rose Parkway and employs about 1,200 workers.
Penn National operates nearly 20 casinos and racetracks in regional markets and has more than 15,000 employees companywide.
In January, Penn began marketing M Resort to its database of more than 12 million regional gaming customers. Following the marketing effort, M Resort booked more than 1,300 incremental room nights, which increased occupancy by almost 4 percent and contributed to first-quarter property revenue of $39.8 million and cash flow of $6.2 million.
"Penn National has brought financial stability to the facility," Marnell said.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow him on Twitter @howardstutz.
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I though that Anthony Marnell did a fantastic job building and running M Resort- I stayed there and loved it! It was just bad timing- Timing is everything...Glad to know he will be sticking around to continue the high standard of customer service offered at M Resort.
actually when you sell a debt in this matter, the creditors take the hit. They agreed to take 25 cents on the dollar. The creditors would rather get something than nothing. At least they got some money. GM's and Chrysler's creditors and shareholders didn't get squat when Obama bailed them out and saved them "good paying union jobs". Now the taxpayers are on the hook. Any bets on to whether that ACTUALLY gets paid back? Let the Three Card Monte "that money is being paid back!" apologists begin...
Penn is a great co. , good luck, Gary Lovechecksare you out hear? watch and learn.
The list of spawn that blew daddy's money grows daily here in Lost Wages. Marnell, Fertitta, Herbst, Maloof, Greenspun, ....
It was not the Marnell family that lost in this deal. It was the M Resort creditors who sold the debt for 25 cents on the dollar.
If I owe $100,000 to Pete, and Pete sells that debt to Dave for $25K, I now owe Dave the $100K. I still owe the same amount -- I am not the loser, Pete is the one who lost.
I live in an area where Penn Gaming owns/operates a casino boat. They are, imho, a top tier company. When they bought Argosy Casino in Riverside, MO they did nothing but improve it. They take care of their employees (I ask how you like your job) and their patrons. Best of luck, Penn! But why keep Marnell on?
The Marnell family built a beautiful hotel-resort,one that is just as nice if not nicer than any strip property!It's terrible that their timing was so bad and they became victims of the recession,like so many.
Peter Carlino and Penn National STOLE that property,25% on the dollar,good luck to them.
As for the Marnell family,I'm sure we haven't heard the last of them!(HOPEFULLY NOT)
75% DISCOUNT? THAT'S 25 CENTS ON THE DOLLAR FOLKS. NOW IT WILL BECOME A KNOCKDOWN JOINT AND RUN OFF ALL THE CUSTOMERS
Why in the world would they keep Marnell on the property? Are you kidding me? Talk about not giving a crap any longer. BAD decision by Penn keeping a lame duck former owner on property, especially as President. They should have given that loser the title of "Food and Beverage Assistant to the Assistant Mgr" - and he'd probably mess that job up too!
Now is the time for the Marnell family to start putting money into it's Laughlin casinos as they are in rough shape. The Edgewater and others are in dire need of upgrading and cleaning. The properties have suffered the last couple of years and maybe the Gaming Regulators should mandate they fix up their other holdings. Shame that most of them are not even clean.