Harrah's Partners with El Reino to Develop a Caesars Resort in Spain
To Include 850-room Luxury Hotel, a 50,000-square-foot Casino, and a Forum Shops Retail Center
LAS VEGAS, NV, November 30, 2005. Harrah's Entertainment, Inc. today signed an agreement with El Reino de Don Quijote de La Mancha, S.A., to develop a Caesars casino resort in the master-planned El Reino community of Ciudad Real, Spain, 118 miles south of Madrid. Subject to all appropriate governmental approvals, Caesars will be Spain's first large-scale casino resort, complementing the other attractions of El Reino de Don Quijote, which will include hotels, golf courses, spas and entertainment, retail and residential development.
"Over the years, Europeans have traveled thousands of miles to immerse themselves in the unique Caesars entertainment experience. It's therefore a thrill and a privilege for us now to be able to bring Caesars to them," said Gary Loveman, chairman, chief executive officer and president of Harrah's Entertainment. "We look forward to joining forces with El Reino to develop a resort of distinction that will further increase the drawing power of this magnificent region."
The Caesars resort in Spain is anticipated to include many of the signature elements that have made Caesars Palace in Las Vegas the leading worldwide name in premium gaming. Guests will be able to indulge in a full variety of world-class gaming, dining, spa and entertainment options, all offering the lavish amenities associated with the Caesars experience. The preliminary project scope includes an 850-room luxury hotel, a 50,000-square-foot casino, a 3,000-seat Colosseum theater, a conference center, a 30,000-square-foot spa, and multiple restaurants, lounges, and bars. In addition, a lakeside Forum Shops retail center will be developed adjacent to the Caesars casino resort.
The announcement caps a month of new international Caesars and Harrah's developments. Earlier in November, Harrah's signed a letter of intent with Baha Mar Resorts, Ltd. and Starwood Hotels and Resorts Worldwide, Inc. to partner in a joint development to create a 1,000-acre destination beachfront resort, where Caesars will be the largest casino in the Bahamas. On Tuesday, Harrah's announced the signing of a memorandum of understanding with the Hit Group, Slovenia's largest casino operators, to pursue development of a luxury casino resort in Nova Gorica, Slovenia -- just across the border from Italy -- that also will offer spa, entertainment and retail amenities.
Harrah's is pursuing a number of other potential developments that would further expand its brands to premier destinations around the world. Notable among those proposals is a pending bid with international partners for the Marina Bay integrated resort site in Singapore that will include luxury accommodations, convention facilities, a cultural museum developed by Centre Pompidou, and exciting dining and entertainment offerings.
The agreement signed today in Ciudad Real, Spain, by Gary Loveman and Aurelio Alvarez, chairman of El Reino de Don Quijote de La Mancha, S.A., creates a joint venture, 60 percent owned by Harrah's and 40 percent by El Reino, to develop the casino, hotel, conference center, spa and associated entertainment facilities on 29 acres in El Reino. Subject to the completion of certain requirements, the development is expected to begin construction in late 2006. Harrah's and El Reino expect to invest approximately $670 million in the project.
The development is part of the first phase of El Reino. Certain infrastructure improvements have already been put into place, including upgraded roads, water and sewer, and one of the planned three golf courses. The master plan for the El Reino development includes an additional spa hotel, other accommodations, sports facilities, destination shopping and entertainment attractions.
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.
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