* Simon Property Group to develop retail experience
* $704m single largest development investment in Mississippi since
Hurricane Katrina; Continuation of Harrah's commitment to Biloxi, Gulf
Coast
BILOXI, Miss., May 16 /PRNewswire-FirstCall/ -- Harrah's Entertainment,
Inc. (NYSE: HET), along with world-renowned singer and songwriter Jimmy
Buffett, today unveiled plans for a new Gulf Coast destination;
Margaritaville Casino & Resort on the shores of Biloxi. The Margaritaville
project is expected to cost more than $700 million, representing the single
largest investment in Mississippi since Hurricane Katrina. The company
expects this to be the first phase of a development that may cost more than
$1 billion.
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"I am privileged to announce Harrah's plans for Margaritaville Casino &
Resort in Biloxi," said Gary Loveman, chairman, chief executive officer and
president. "Along with Jimmy Buffett, we plan to develop the next
generation destination resort on the Gulf Coast. This project of more than
$700 million dollars is vital to supporting the rebirth of Mississippi's
tourism industry."
"I have always considered myself a 'Gulf Coast kid,' said singer /
songwriter Jimmy Buffett. "I was born there, grew up there and jumped on a
stage for the first time there, before hitting the road. I have seen the
world, traveled to distant shores, written a few songs and lived a few tall
tales along the way, and now it is good to be coming back home."
"I have seen the best and the worst of times along Mississippi Sound,
and as a survivor of storms myself, I feel an enormous sense of gratitude
and good fortune to be part of the re-birth of the region by joining forces
with Harrah's to bring the Margaritaville Casino & Resort 'Down around
Biloxi,'" continued Buffett. "One of the essential elements of life along
the Gulf Coast is the Creole belief that hard work and good fun go hand in
hand. So, with that in mind I say, 'Let's get to work and let's let the
good times roll again,'" he continued.
"Margaritaville Casino & Resort represents Harrah's ongoing commitment
to, and vision for, Biloxi, the tourism industry in Mississippi, and the
regeneration of the entire Gulf Coast," said Charles Atwood, vice chairman,
Harrah's Entertainment. "This development will include many exciting and
diverse dining, entertainment and retail experiences that will be unique to
the Gulf Coast region. We are pleased that Simon Property Group, the
largest retail real estate company in North America, will be partnering
with us to deliver such a significant retail development to the Gulf Coast
area."
"We're delighted to join Harrah's and Jimmy Buffett in today's
announcement and bring a first-class retail center to complement the hotel
and casino and continue the recovery on the Gulf Coast," said David Simon,
chief executive officer, Simon Property Group, Inc. "We expect that there
will be a multitude of restaurant and entertainment options in our portion
of the development that will only add to visitors' enjoyment of the
Margaritaville Casino & Resort."
"Harrah's is bringing together unique and energizing parties as it
takes the leadership role in the redevelopment of the Mississippi Gulf
Coast with the size and scope of this project," said John Payne, president,
Central Division for Harrah's. "The heart and soul of Margaritaville Casino
& Resort, Pascagoula, MS-native Jimmy Buffett, is a world class talent unto
himself. Along with Simon Property Group's expertise in retail real estate
operations, Margaritaville Casino & Resort promises to be a destination
resort which will be amongst the finest in the Southeastern United States."
Margaritaville Casino & Resort features
Margaritaville Casino & Resort will be developed on 46 acres of land
south of U.S. Highway 90 in Biloxi on the site formerly occupied by Grand
Casino and Casino Magic. With a projected development start date of summer
2007, the Margaritaville Casino & Resort project features include:
* Approximately 100,000 square feet of casino floor;
* 250,000 square feet of retail space;
* Approximately 66,000 square feet of meeting space;
* 420 new hotel rooms;
- 378 renovated hotel rooms;
* Pool deck area with cabanas, bar, and tropical landscaping;
* Full-service Spa;
* Summer 2007 projected project start date; and
* Spring 2010 projected completion date.
Harrah's in Mississippi
Harrah's Entertainment owns branded gaming and resort destinations in
Tunica and Biloxi, Mississippi. The following represents an overview of the
corporation's economic impact to the state:
* 2006 Wages paid in-state $139,843,098.69
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and
Corporate Social Responsibility
Harrah's Mississippi casinos are particularly active in their support
of Boys and Girls Clubs of the Gulf Coast. In 2005, two of the company's
properties hosted major fundraisers for the group, which together netted
more than $200,000. Early in 2006, Gulf Coast employees hosted a Clean-Up
Day, during which volunteers spent the day at the Boys and Girls Club
Forrest Heights Unit and the Boys and Girls Club Lundy's Unit to clean,
paint and repair the facilities.
Harrah's Entertainment strives to share its success with its
communities, making them vibrant places to work and live. The company
offers support through donations and sponsorships, public and private
partnerships, and encouraging employee volunteerism. In 2006, Harrah's and
its Foundation distributed $76.8 million or, on average, nearly $1.5
million a week in community contributions. Additional information can be
found at http://www.harrahscommunityrelations.com.
In 2006, major grants were awarded to many prominent local
organizations. Gifts included a $25,000 community partnership grant for the
National Civil Rights Museum; a $25,000 grant for the Memphis Jewish
Federation's Senior Lunch Program; a $25,000 community partnership grant
for the American Heart Association; and a $25,000 donation to the Biloxi
Alzheimer Association.
Hurricane Katrina Relief and Recovery
Even before Hurricane Katrina made landfall in August 2005, Harrah's
had sprung headlong into recovery mode. When the storm's brute force
shuttered our New Orleans property and utterly destroyed our riverboats in
Gulfport and Biloxi, Miss., Harrah's had already created makeshift
emergency shelters and information centers to give employees and other
local residents safe places to stay, access to basic necessities, and
resources to find housing and communicate with family members.
The Harrah's Employee Recovery Fund, seeded with a $1 million
commitment from the Harrah's Foundation, ultimately swelled to $6.6 million
thanks to generous employees, customers, business partners, community
leaders, Harrah's entertainers and an additional $500,000 gift from the
Foundation. Ultimately, a total of $8.1 million in grants, loans and
relocation assistance was distributed to victims of Hurricanes Katrina and
Rita.
Within weeks, employee Information Centers were opened in Gulfport,
Lake Charles and Baton Rouge, providing Harrah's employees with basic
necessities -- including on-site medical care -- and with resources to help
them find housing, communicate with family members, and cope with the
devastation they'd experienced.
Harrah's Entertainment, Inc. is the world's largest provider of branded
casino entertainment. Since its beginning in Reno, Nevada nearly 70 years
ago, Harrah's has grown through development of new properties, expansions
and acquisitions, and now owns or manages casinos on four continents. The
company's properties operate primarily under the Harrah's, Caesars and
Horseshoe brand names; Harrah's also owns the London Clubs International
family of casinos. Harrah's Entertainment is focused on building loyalty
and value with its customers through a unique combination of great service,
excellent products, unsurpassed distribution, operational excellence and
technology leadership.
More information, please visit Harrah's Web site at -- http://www.harrahs.com.
About the Harrah's Foundation
The Harrah's Foundation is a private, 501(c)(3) foundation established
to provide financial support to qualified organizations in communities
where Harrah's employees live and work. Established in 2002, The Foundation
supports social reinvestment programs by funding eligible 501(c)(3)
organizations dedicated to seniors, education and civic programs. Since its
formation, it has committed nearly $21 million to nonprofit organizations
throughout the United States. More information is available at:
http://www.harrahscommunityrelations.com.
This release includes "forward-looking statements" intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. You can identify these statements by the
fact that they do not relate strictly to historical or current facts. These
statements contain words such as "may," "will," "project," "might,"
"expect," "believe," "anticipate," "intend," "could," "would," "estimate,"
"continue" or "pursue," or the negative or other variations thereof or
comparable terminology. In particular, they include statements relating to,
among other things, future actions, new projects, strategies, future
performance, the outcomes of contingencies and future financial results of
Harrah's. These forward-looking statements are based on current
expectations and projections about future events.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified and, consequently, the
actual performance of Harrah's may differ materially from those expressed
or implied by such forward-looking statements. Such risks and uncertainties
include, but are not limited to, the following factors, as well as other
factors described from time to time in our reports filed with the
Securities and Exchange Commission (including the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" contained therein): the occurrence of any event,
change or other circumstances that could give rise to the termination of
the merger agreement with TPG and Apollo; the outcome of any legal
proceedings that have been, or will be, instituted against the Company
related to the merger agreement; the inability to complete the merger due
the failure to satisfy conditions to completion of the merger, including
the receipt of all regulatory approvals related to the merger; the failure
to obtain the necessary financing arrangements set forth in the debt and
equity commitment letters delivered pursuant to the merger agreement; risks
that the proposed transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the merger; the
impact of the substantial indebtedness to be incurred to finance the
consummation of the merger; the effects of local and national economic,
credit and capital market conditions on the economy in general, and on the
gaming and hotel industries in particular; construction factors, including
delays, increased costs for labor and materials, availability of labor and
materials, zoning issues, environmental restrictions, soil and water
conditions, weather and other hazards, site access matters and building
permit issues; the effects of environmental and structural building
conditions relating to our properties; access to available and reasonable
financing on a timely basis; the ability to timely and cost-effectively
integrate acquisition into our operations, including London Clubs; changes
in laws, including increased tax rates, regulations or accounting
standards, third-party relations and approvals, and decisions of courts,
regulators and governmental bodies; litigation outcomes and judicial
actions, including gaming legislative action, referenda and taxation; the
ability of our customer-tracking, customer loyalty and yield-management
programs to continue to increase customer loyalty and same store sales or
hotel sales; our ability to recoup costs of capital investments through
higher revenues; acts of war or terrorist incidents or natural disasters;
abnormal gaming holds; and the effects of competition, including locations
of competitors and operating and market competition.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only as of the
date made. Harrah's disclaims any obligation to update the forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date stated, or if no
date is stated, as of the date of this press release.
SOURCE Harrah's Entertainment, Inc.
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Related links:
http://www.harrahscommunityrelations.com
http://www.harrahs.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20021220/LAF055LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Alberto Lopez of Harrah's Entertainment,
Inc., +1-702-407-6344
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