RCI Announces Acquisition of Denver Area Food Hall with Bar, Brewery & Videogame Arcade

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has acquired a food hall with a full-service bar, brewery, and video game arcade in Greenwood Village, CO, for $5.2 million. This includes $1.875 million in cash and a 5-year, 6.67% bank financing note. The facility spans 12,500 square feet and will offer diverse food options. Additionally, RCI plans to introduce its Bombshells kitchen and craft beers, enhancing brand differentiation in Colorado. This acquisition aligns with RCI's overall expansion strategy in the Denver area.

Positive

• Acquisition cost of $5.2 million offers potential for significant revenue growth.
• Incorporation of a mini Bombshells kitchen and craft brewery enhances brand offerings.
• Strategic expansion into the Denver market with additional sites acquired.

Negative

• None.

HOUSTON, Dec. 21, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced the acquisition of a food hall with a full service bar, brewery, and videogame arcade, as well as the associated real estate, in Greenwood Village, CO as part of RCI's expansion in the greater Denver area.

Consideration paid was $5.2 million, consisting of $1.875 million in cash and a 5-year, 6.67% bank financing note with a 25-year amortization. The food hall at the popular 12,500 square foot location at 6575 Greenwood Plaza Boulevard offers sushi, charcuterie, Italian artisanal sandwiches, Korean dumplings, Mexican dishes, ramen, pizza, and Mediterranean specialties.

The plan is to add a mini Bombshells kitchen featuring its famous wings and salads as well as many of its popular appetizers, and use the brewery to create its own, signature craft beers for sale in other RCI locations to further differentiate its brands in Colorado.

Recently, RCI announced the acquisition of sites in Aurora, CO for a Bombshells and in Central City, CO for a Rick's Cabaret Steakhouse and Casino, adding to the company's five adult nightclubs in Denver.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (Twitter: @RCIHHinc)

With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. See all our brands at www.rcihospitality.com. 

Forward-Looking Statements

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, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2022, as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com

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SOURCE RCI Hospitality Holdings, Inc.

FAQ

What did RCI Hospitality acquire in Greenwood Village, CO?

RCI Hospitality acquired a food hall with a bar, brewery, and video game arcade.

How much did RCI Hospitality pay for the acquisition?

The total consideration paid was $5.2 million, including $1.875 million in cash and financing.

What is the strategic importance of the acquisition for RCI Hospitality?

This acquisition is part of RCI's expansion strategy in the greater Denver area.

What are the planned additions to the acquired food hall?

RCI plans to add a mini Bombshells kitchen and create signature craft beers.

How does this acquisition impact RCI Hospitality's brand differentiation?

It enhances brand differentiation by offering unique food and beverage options.