After its February 2018 record-setting $1.4 billion IPO (the fourth-largest REIT IPO in history and the largest in the hotel and leisure sector), VICI Properties continues to break records across the REIT landscape. In November 2018, VICI followed its successful transaction with a $724.5 million public offering, the largest-ever follow-on offering completed by a REIT.
As a leading experiential real estate company focusing on gaming, leisure and hospitality properties, VICI remains poised to take advantage of trends in consumer spending behavior.
One major trend that continues to benefit VICI is a cross-generational shift in consumer spending behavior. From millennials to baby boomers, people are increasingly spending money on experiences rather than on physical objects. Experiential real estate represents a lucrative opportunity. In 2019, this burgeoning market — which includes recreation and hospitality, fitness centers, concert venues, theme parks, movie theaters, spa and wellness facilities, cultural establishments, sports arenas, and ski resorts — could generate upward of $223 billion of revenue from the experiences that these real estate assets could yield, according to IBISWorld.
As a strategic and trusted partner with VICI, we have continued to demonstrate our deep and vast understanding of the REIT market while delivering record-setting results for the experiential real estate company. Since 2017, we have counseled VICI in deals totaling more than $9.4 billion, including its $749 million acquisition and leaseback of Octavius Tower at Caesars Palace and the real estate assets associated with Harrah’s Philadelphia, its $261 million acquisition of the land and real estate assets of Margaritaville Resort Casino and lease to Penn National Gaming, and its pending $1 billion acquisition of Greektown Casino Hotel and lease to Penn National and $745 million acquisition of JACK Cincinnati Casino and lease to Hard Rock International.