RCI Hospitality Subsidiary Acquires Rick's Cabaret New York Real Estate in Manhattan
NEW YORK, Jan. 13, 2016 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced that a subsidiary has acquired the land and building in Manhattan where Rick's Cabaret New York is located. Rick's Cabaret New York, recognized as the No. 1 gentlemen's club in New York City, is one of RCI's top revenue generating subsidiaries.
Total consideration was $10.0 million for the land and the three-story, 14,000 square foot building at 50 West 33rd Street. The acquisition was wholly financed through a 5.00% bank loan, with a 25 year amortization and 10 year balloon. The RCI subsidiary had been paying rent of approximately $1.2 million annually.
Since opening its doors in October 2005, Rick's Cabaret New York has set a new high standard for the city's adult club industry, for the first time offering a truly upscale, friendly and safe environment for both customers and entertainers. The club generated record breaking numbers in December with an increase of 10% over the same month last year.
"We have always wanted to control the Rick's Cabaret New York property for licensing purposes," said Eric Langan, President and CEO. "Now that we have access to commercial bank financing at reasonable rates, our cost of money will be considerably lower than the rent, making this investment accretive to earnings and cash flow."
Rick's Cabaret New York (50 West 33rd Street) was named "Best Gentlemen's Club in New York" by Men's Mag Daily. The club features its famed Rick's Steakhouse and VIP Crystal Room on its second floor, Rick's Sky Box and VIP suites on its third floor, and a Smoking Deck and Garden on the roof. The club is known for its warm hospitality, beautiful exotic dancers and well-appointed setting.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis 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 the operational and financial results of its Web sites, 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.