Evansville Indiana Accor Hotel
As part of the transaction, GLPI will acquire the Evansville casino property for $340 million and lease it back to Twin River for $28 million per year, subject to escalation to escalate the situation. The publicly traded Gaming Focused Real Estate Investment Trust ("GLPI") will purchase and lease all of Evansville's casino properties from the owner of Twin Rivers Casino and Hotel for up to $144 million and lease the back of the casino for $12 million - an annual rent. Under the deal, GLpi will acquire the property at the intersection of South Main Street and South Washington Street in the city center for $140 million.
As a result, Twin River will acquire the Evansville facility, which will have an EBITDA of $32 million in 2019 with a pro forma lease of $28 million, for $12 million in annual rent - adjusted EBTDA for the next five years.
Based on Evansville's 2019 EBITDA, the acquisition is expected to be about $1.2 billion, or a multiple of $2.4 billion. This multiple excludes operational improvements and excludes the impact of future cost reductions in the form of lower operating costs and / or higher occupancy rates.
Twin River will also acquire the sports betting and iGaming Skins associated with Evansville operations to gain access to the growing Indiana market as part of the transaction. This also provides an attractive Indianaagaming market where we will significantly drive our betting and gaming operations, "said John D. D'Amato, President and CEO of Twin River.