Today, PENN Entertainment, owner of M Resort in Henderson, announced a $206 million expansion to add approximately 384 rooms to M Resort, brining its total to 774 rooms and suites. Along with the rooms, there will be expanded meeting space, updated amenities and additional local partnerships that will be announced at a later date.
"At the M Resort, the addition of a second tower will benefit from the strong demand in the Henderson locals market while providing additional capacity for the group business that is drawn to our market-leading resort and amenities, including our highly successful partnership with the Las Vegas Raiders,” said Jay Snowden, Chief Executive Officer and President of PENN Entertainment.
M Resort opened in March 2009 and became a part of the Penn National Gaming brand in 2011.
In November 2013, Penn National Gaming announced the tax-free spin-off of Gaming and Leisure Properties, Inc. (GLPI), the first real estate investment trust specializing in casinos. As a result, GLPI is a separate company that owns the real estate associated with Penn National Gaming, which later renamed to PENN Entertainment. Therefore, M Resort became part of GLPI's real estate portfolio since then.
Throughout the course of the years, GLPI has grown its portfolio to 57 real estate assets across 17 states. Tenants include Penn Entertainment, Caesars Entertainment, Boyd Gaming Corporation, Casino Queen, Bally’s, and Cordish Companies.
In addition to the M Resort expansion in Henderson, PENN Entertainment is expanding its company footprint in other cities. It intends to relocate its riverboat casinos in Aurora and Joliet, Illinois to new land-based facilities and to build a new hotel at Hollywood Columbus in Ohio.
In connection with these projects, PENN Entertainment has entered into an agreement with GLPI. GLPI will provide up to $225 million at a 7.75% cap rate for the Aurora project. With respect to the Columbus, Joliet and M Resort projects, PENN Entertainment may elect to receive up to $350 million of funding in the aggregate from GLPI for real property improvements at then-current market rates. A new master please will be effective on January 1, 2023 and details are included in PENN Entertainment’s 8-K filling.