Caesars Entertainment Corp. CEO Mark Frissora wants to develop more than 90 acres the company owns in Las Vegas, including land in front of Caesars Palace, after its largest unit emerges from bankruptcy later this year, according to a report yesterday in Bloomberg News. “We have a lot of real estate that’s underutilized,” Frissora said. “We have plans to basically develop all of that very valuable center-strip property as soon as we emerge. Those assets will have a very high-return, low-risk profile.” Caesars has struggled under a mountain of debt since a $30 billion leveraged buyout in 2008. In January 2015, the company put its largest division, Caesars Entertainment Operating Co., into bankruptcy. It’s expected to exit in the third quarter. The Las Vegas-based company has enjoyed growth in sales and profit over the past two years, due in part to a strategy of renovating hotel rooms and searching for cost savings in places ranging from parking lots to guest check-in. As part of the bankruptcy restructuring, Caesars is creating a real estate investment trust that will own many of the company’s casinos, including the flagship Caesars Palace in Las Vegas. Debt and other obligations will be reduced to $14.6 billion from $23.5 billion in 2014, the company said. Fixed costs, including interest expense and rent, will decline to $1.28 billion annually from $2.67 billion three years ago. Caesars has reduced promotional costs while maintaining its market share in key cities, CFO Eric Hession said. The company has cut $800 million in annual expenses over the past two years.
