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3 Facts Las Vegas Investors Should Know About Caesars Entertainment Now

Source: Las Vegas Convention and Visitors Authority for total number of rooms in Las Vegas, and each company's website for their own hotel room numbers.

3) New leadership is coming soon

The company recently announced that longtime CEO Gary Loveman will step down, though he will remain chairman. Former Hertz CEO Mark Frissora will replace him as CEO of Caesars Entertainment. The transition is already under way, to be completed in July. As Loveman stated in a press release on the CEO change:

After 12 years as CEO, Caesars has accomplished more than what we could have imagined when I arrived in 1998. Now, with the company in the midst of a formal restructuring of one of its subsidiaries and a merger between entities, the time is ripe for a transition.

True, Caesars accomplished much in the last 12 years, such as the Harrahs/Caesars acquisition itself, as well as the acquisition of Planet Hollywood and the World Series of Poker. But the company has lost its way recently, which added to unfortunate market circumstances, and has led to the company's current mess.

However, creating opportunities for highly leveraged companies to improve their financial health and start growing again seems to be a specialty for Frissora. His previous tenure at Hertz is said by most to have been successful, and the stock rose by 230% during that time. One reason for this was his success with taking Hertz global, something Caesars must do to have a chance for renewed growth.

Foolish takeaway

Caesars is in a bad way right now amid its restructuring and bankruptcy. Yet the company is still a massive force in the gaming industry, with a lot of assets, brand strength, and potential opportunity to grow internationally. Can Frissora take Caesars global like he did with Hertz and help the company thrive once again?

It's still a risky bet, and there are a significant number of issues to watch (such as the legal battle happening over the bankruptcy). However, gaming investors should follow this tale, not only for the potential opportunity to invest in Caesars at its current low price, but also because of what Caesars' size means to the rest of the industry.

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The article 3 Facts Las Vegas Investors Should Know About Caesars Entertainment Now originally appeared on Fool.com.

Bradley Seth McNew has no position in any stocks mentioned. The Motley Fool is short Caesars Entertainment. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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