RCI Announces Acquisition of Metro Detroit's Flight Club
Rhea-AI Summary
RCI Hospitality Holdings (Nasdaq: RICK) has acquired Flight Club, Detroit's premier gentlemen's club, for $11.0 million. The purchase includes $3.0 million cash and $5.0 million seller financing at 8.0% for the club, plus $3.0 million cash for real estate. The acquisition is expected to generate $2.0 million in annualized adjusted EBITDA.
Located 5 miles from Detroit Metro Airport and 20 miles from downtown, the two-story, 10,000-square-foot establishment features upscale entertainment, a descending Corvette sports car display, valet parking, and a five-star kitchen. Established in 1997 and recently renovated, Flight Club represents RCI's first club purchase under their new 5-Year 'Back to Basics' Capital Allocation Plan.
Positive
- Expected to contribute $2.0M in annualized adjusted EBITDA
- Strategic location near Detroit Metro Airport, downtown, casinos, and sports venues
- Recently renovated 10,000-square-foot facility
- Structured financing with only $6.0M cash outlay of total $11.0M purchase price
Negative
- 8.0% interest rate on $5.0M seller financing portion
News Market Reaction 1 Alert
On the day this news was published, RICK gained 0.59%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The purchase price totaled
Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., commented: "This is an exciting acquisition, fits in well with our other high-end clubs with restaurants in major cities, and is the first club purchase since the recent launch of our 5-Year 'Back to Basics' Capital Allocation Plan. Flight Club is a well-established business that should benefit from our marketing, purchasing and systems know-how."
The two-story, 10,000-square foot establishment is located at 29709 Michigan Avenue,
Flight Club is open weekdays from 11:30 a.m. to 2:00 a.m., Saturday 1:00 p.m. to 2:00 a. m., and Sunday 7:00 p.m. to 2:00 a.m. Visit https://flightclubdetroit.com/ or https://www.instagram.com/theflight_club/
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @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 of 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, 2024, as well as its other filings with the
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
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