Aztar Corporation was a hospitality company based in Phoenix,
Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
, focused on
resort
A resort (North American English) is a self-contained commercial establishment that tries to provide most of a vacationer's wants, such as food, drink, swimming, lodging, sports, entertainment, and shopping, on the premises. The term ''resort ...
hotel
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
s and
casino
A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions. Some casinos are also known for hosting live entertai ...
s. In 2005, the company had revenues of more than $915 million and earnings before interest and taxes of $212 million. During 2006 the company became the subject of a bidding war for ownership, with
Columbia Sussex
Columbia Sussex is a privately owned hotel company based in Crestview Hills, Kentucky. The company, owned by the Yung family, owns and operates hotels in various parts of the United States. The current president and founder is William J. Yung III. ...
winning.
History
Aztar was formed in 1989 as part of a restructuring of Ramada Inn, Inc. Ramada's gaming businesses, including the
Tropicana Atlantic City
Tropicana Atlantic City, also known as The Trop and previously as TropWorld Resort, is a resort, casino hotel located on the beach and Boardwalk in Atlantic City, New Jersey. It is owned by Gaming and Leisure Properties and operated by Caesars ...
and the Tropicana Las Vegas, were spun off as Aztar Corporation, which was given to Ramada's shareholders, while Ramada's restaurant and non-gaming hotel businesses remained with the original company, which was immediately acquired by Hong Kong-based New World Development. Aztar took its name as a
portmanteau
A portmanteau word, or portmanteau (, ) is a blend of wordsCaruthersville, Missouri and
Evansville, Indiana
Evansville is a city in, and the county seat of, Vanderburgh County, Indiana, United States. The population was 118,414 at the 2020 census, making it the state's third-most populous city after Indianapolis and Fort Wayne, the largest city in ...
. On March 5, 2002 Aztar acquired full ownership of the Tropicana location in Las Vegas by purchasing the 50% share held by Chicago's Jaffe family. During 2005, the company acquired a site in
Allentown, Pennsylvania
Allentown (Pennsylvania Dutch language, Pennsylvania Dutch: ''Allenschteddel'', ''Allenschtadt'', or ''Ellsdaun'') is a city in Lehigh County, Pennsylvania, Lehigh County, Pennsylvania. The city has a population of 125,845 as of the 2020 United ...
with the intention of securing a gaming license and then developing a casino.
On March 13, 2006, Aztar announced plans to be acquired by Pinnacle Entertainment for $2.1 billion. Subsequent bids were made by Colony Capital, LLC,
Columbia Sussex
Columbia Sussex is a privately owned hotel company based in Crestview Hills, Kentucky. The company, owned by the Yung family, owns and operates hotels in various parts of the United States. The current president and founder is William J. Yung III. ...
and
Ameristar Casinos
Ameristar Casinos, Inc. was a casino operator based in Paradise, Nevada. It was acquired by Pinnacle Entertainment in 2013. The company had eight properties in seven markets.
History
The roots of Ameristar Casinos date to 1954 when "Cactus Pet ...
. As of April 26, 2006, all four companies were engaged in bidding over Aztar, with Pinnacle increased its bid to $45 per share, matching Ameristar's bid; Columbia Sussex had previously bid $47 per share. Later, Columbia Sussex increased its bid to $50 a share, all in cash. Aztar management determined on May 1 that the latest bid was preferred over Pinnacle's late increase to $48 a share, in cash and stock.
On May 4, 2006, Ameristar announced that it was pulling out of the bidding for Aztar. Additionally, Colony apparently lost interest, having failed to increase its bid beyond $41 a share and making no public comment for several weeks. Since Columbia Sussex eventually outbid Pinnacle, the latter company was paid a $50 million
termination fee {{About, fees for breaking terms of agreements or long-term contracts, Interconnect fees in (telephone) networks, Termination rates
An early termination fee is a charge levied when a party wants to break the term of an agreement or long-term contra ...
plus expenses, which may total $16 million.
Bidding ended on May 19, 2006 with the acceptance of a $2.75 billion bid from Columbia Sussex. Columbia Sussex paid a $313 million breakup fee in advance, in case the deal fell through with $78 million of that used to pay the breakup fee to Pinnacle Entertainment. The sale closed in January 2007.
The
New Jersey Casino Control Commission
The Casino Control Commission is a New Jersey state governmental agency that was founded in 1977 as the state's Gaming Control Board, responsible under the Casino Control Act for licensing casinos in Atlantic City. The commission also issues lic ...
ultimately rejected Columbia Sussex's application for a gaming license for the Tropicana Atlantic City, sending the company's gaming businesses into bankruptcy. Most of the Aztar properties became part of the reorganized
Tropicana Entertainment Inc.
Tropicana Entertainment Inc. was a publicly traded gaming company that owned and operated casinos and resorts in Indiana, Louisiana, Mississippi, Nevada, Missouri, New Jersey and Aruba. Tropicana properties collectively had approximately 5,500 roo ...
in March 2010.
Casinos at time of acquisition
*
Tropicana Casino & Resort Atlantic City
Tropicana Atlantic City, also known as The Trop and previously as TropWorld Resort, is a resort, casino hotel located on the beach and Boardwalk in Atlantic City, New Jersey. It is owned by Gaming and Leisure Properties and operated by Caesars Ent ...
–
Atlantic City, New Jersey
Atlantic City, often known by its initials A.C., is a coastal resort city in Atlantic County, New Jersey, United States. The city is known for its casinos, boardwalk, and beaches. In 2020, the city had a population of 38,497.
Paradise, Nevada
Paradise is an unincorporated town and census-designated place (CDP) in Clark County, Nevada, United States, adjacent to the city of Las Vegas. It was formed on December 8, 1950. Its population was 191,238 at the 2020 census, making it the fif ...
Casino Aztar Evansville
Bally's Evansville is a casino hotel and entertainment complex in downtown Evansville, Indiana, owned by Gaming and Leisure Properties and operated by Bally's Corporation.
Originally named Casino Aztar, it was opened by Aztar Corporation in 1995 ...
–
Evansville, Indiana
Evansville is a city in, and the county seat of, Vanderburgh County, Indiana, United States. The population was 118,414 at the 2020 census, making it the state's third-most populous city after Indianapolis and Fort Wayne, the largest city in ...
*
Casino Aztar Caruthersville
Century Casino Caruthersville, formerly Lady Luck Casino Caruthersville, is a riverboat casino and hotel in Caruthersville, Missouri. It is owned by Vici Properties and operated by Century Casinos. The riverboat is named ''City of Caruthersville'' ...