HOUSTON, April 26, 2017 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced the acquisitions of the assets of a gentlemen's club and real estate to make a low cost entry into Greater St. Louis, another top 20 US metro market.
RCI said a subsidiary had acquired the assets of Hollywood Showclub for $1.0 million from the club's owner. Hollywood Showclub is a 12,000 square foot venue at 5481 Bunkum Road, Washington Park, IL, 62204, off US 64, 10 minutes from downtown St. Louis.
Separately, RCI said another subsidiary had acquired the club's building and land from its landlord, as well as adjacent land that could be used to open another club, and a nearby building and land that it intends to lease to a third party to operate another gentlemen's club. The RCI subsidiary paid a total of $3.2 million for these properties, and plans to use them to apply for mortgage financing.
Eric Langan, RCI President and CEO, said, "These assets are in a major new market for us, providing a foothold in the Midwest. RCI subsidiaries now own one or more clubs in eight of the top 20 US metro markets.
"St. Louis is a business and tourist hub, with good convention traffic and great sports teams like the Cardinals in baseball and the Blues in hockey. Based on what we paid and the potential to finance the real estate, we anticipate the cash on cash return should be in line with our capital allocation strategy."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 42 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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SOURCE RCI Hospitality Holdings, Inc.