Golden Entertainment’s Sale-Leaseback Deal

Golden Entertainment, Inc., an operator of various entertainment and hospitality assets (including The Strat), is entering a sale-leaseback agreement with Vici Properties Inc. The company’s CEO, Blake Sartini, will lead the acquisition.

The recent announcement indicates that Golden has faced challenges, although this was not explicitly mentioned in their official release. Issues like declining revenue, margin pressures, and significant debt have contributed to the company’s struggles.

In the third quarter of 2025, Golden reported revenues of $154.8 million—down from $161.2 million in the same period the previous year, alongside a net loss of $4.7 million compared to a profit of $5.2 million year-on-year.

As part of the transition, Vici will acquire the real estate of seven properties from Golden for approximately $1.16 billion, with The Strat, Arizona Charlie’s Decatur, and Arizona Charlie’s Boulder being the notable Las Vegas locations involved.

The assets will be leased back to Sartini’s new operating company, Golden OpCo, through a 30-year agreement with an initial annual rent of $87 million, which is set to increase by 2% annually from the third year. This structured lease can provide stable cash flows for Vici while allowing Golden to unlock value from their real estate.

Vici’s acquisition aims to diversify their portfolio, particularly given that 40% of their base rent comes from a single entity, Caesars Entertainment. This strategy will help both companies adapt to the current market dynamics and mitigate risks as they navigate changing industry conditions.

In summary, while the Golden-Vici deal might not directly affect guests at The Strat, its implications for the companies involved reflect broader trends in the Las Vegas gaming market. This transaction is expected to conclude in mid-2026.