RCI Announces Acquisition of Metro Detroit's Flight Club
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.
RCI Hospitality Holdings (Nasdaq: RICK) ha acquisito Flight Club, il club di gentiluomini di punta di Detroit, per 11,0 milioni di dollari. L'acquisto include 3,0 milioni di dollari in contanti e 5,0 milioni di dollari di finanziamento da parte del venditore al 8,0% per il club, oltre a 3,0 milioni di dollari in contanti per il settore immobiliare. Si prevede che l'acquisizione genererà 2,0 milioni di dollari in EBITDA aggiustato annualizzato.
Situato a 8 chilometri dall'Aeroporto Metropolitano di Detroit e a 32 chilometri dal centro, l'istituzione di due piani, di 10.000 piedi quadrati, offre intrattenimento di lusso, una mostra di auto sportive Corvette in discesa, parcheggio con servizio e una cucina a cinque stelle. Fondato nel 1997 e recentemente ristrutturato, Flight Club rappresenta il primo acquisto di club da parte di RCI nel loro nuovo Piano di Allocazione del Capitale 'Back to Basics' di 5 anni.
RCI Hospitality Holdings (Nasdaq: RICK) ha adquirido Flight Club, el club de caballeros más destacado de Detroit, por 11.0 millones de dólares. La compra incluye 3.0 millones de dólares en efectivo y 5.0 millones de dólares de financiamiento del vendedor al 8.0% para el club, más 3.0 millones de dólares en efectivo para la propiedad inmobiliaria. Se espera que la adquisición genere 2.0 millones de dólares en EBITDA ajustado anualizado.
Ubicado a 8 kilómetros del Aeropuerto Metropolitano de Detroit y a 32 kilómetros del centro, este establecimiento de dos plantas y 10,000 pies cuadrados cuenta con entretenimiento de alta gama, una exhibición de autos deportivos Corvette en descenso, servicio de valet y una cocina de cinco estrellas. Fundado en 1997 y recientemente renovado, Flight Club representa la primera compra de club por parte de RCI bajo su nuevo Plan de Asignación de Capital 'Back to Basics' de 5 años.
RCI Hospitality Holdings (Nasdaq: RICK)는 디트로이트의 최고 남성 클럽인 Flight Club를 1,100만 달러에 인수했습니다. 이 구매에는 클럽을 위한 300만 달러의 현금과 8.0%로 제공된 500만 달러의 판매자 자금 조달, 그리고 부동산을 위한 300만 달러의 현금이 포함됩니다. 이 인수는 연간 조정 EBITDA 200만 달러를 생성할 것으로 예상됩니다.
디트로이트 메트로 공항에서 8킬로미터, 도심에서 32킬로미터 떨어진 이 2층 건물은 10,000평방피트 크기로 고급 오락, 하강하는 Corvette 스포츠카 전시, 발렛 주차 서비스 및 5성급 주방을 제공합니다. 1997년에 설립되어 최근에 개조된 Flight Club은 RCI의 새로운 5년 '기본으로 돌아가기' 자본 배분 계획 하에 첫 번째 클럽 구매를 나타냅니다.
RCI Hospitality Holdings (Nasdaq: RICK) a acquis une boîte de nuit renommée à Detroit, le Flight Club, pour 11 millions de dollars. L'achat comprend 3 millions de dollars en espèces et 5 millions de dollars en financement vendeur à 8% pour le club, ainsi que 3 millions de dollars en espèces pour l'immobilier. L'acquisition devrait générer 2 millions de dollars d'EBITDA ajusté annualisé.
Situé à 8 kilomètres de l'aéroport métropolitain de Detroit et à 32 kilomètres du centre-ville, cet établissement de deux étages sur 10 000 pieds carrés propose des divertissements de luxe, une exposition de voitures de sport Corvette en descente, un service de voiturier et une cuisine étoilée au guide Michelin. Fondé en 1997 et récemment rénové, le Flight Club représente le premier achat de club de RCI dans le cadre de leur nouveau plan de réallocation de capital 'Back to Basics' sur 5 ans.
RCI Hospitality Holdings (Nasdaq: RICK) hat den Flight Club, den führenden Herrenclub in Detroit, für 11,0 Millionen Dollar erworben. Der Kauf beinhaltet 3,0 Millionen Dollar in bar und 5,0 Millionen Dollar Verkäuferfinanzierung zu 8,0% für den Club, sowie 3,0 Millionen Dollar in bar für das Immobiliengeschäft. Es wird erwartet, dass die Übernahme 2,0 Millionen Dollar an annualisiertem bereinigtem EBITDA generiert.
Der im Jahr 1997 gegründete und kürzlich renovierte, zwei Stockwerke hohe Club mit einer Fläche von 10.000 Quadratfuß befindet sich 8 Kilometer vom Detroit Metropolitan Airport und 32 Kilometer von der Innenstadt entfernt. Er bietet gehobene Unterhaltung, eine ausfahrende Corvette-Sportwagenshow, Valet-Parken und eine Fünf-Sterne-Küche. Der Flight Club stellt den ersten Clubkauf von RCI im Rahmen ihres neuen 5-Jahres-‘Back to Basics’-Kapitalverteilungsplans dar.
- 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
- 8.0% interest rate on $5.0M seller financing portion
Insights
RCI Hospitality's strategic acquisition of Flight Club demonstrates smart capital deployment with a well-structured
The expected
Flight Club's strategic location near Detroit Metro Airport and major entertainment venues creates multiple revenue drivers: business travelers, tourists and local entertainment seekers. The recent renovations and upscale positioning align perfectly with RCI's portfolio of premium venues, suggesting immediate integration potential with minimal additional capital requirements.
This acquisition marks the first under RCI's new 5-Year 'Back to Basics' Capital Allocation Plan, indicating disciplined execution of their growth strategy. The company's ability to leverage its existing operational expertise, marketing capabilities and purchasing power should drive operational efficiencies and margin improvements beyond the stated EBITDA projections.
The Flight Club acquisition strategically positions RCI in the Detroit metropolitan market, capitalizing on multiple high-value customer segments. The venue's location, 5 miles from Detroit Metro Airport and 20 miles from downtown, provides access to both business travelers and local entertainment seekers, diversifying revenue streams.
The 10,000-square-foot facility's recent renovations and upscale amenities, including valet parking and a five-star kitchen, position it firmly in the premium segment. This aligns with Detroit's ongoing economic revitalization and growing entertainment district around its casinos and sports venues.
Operating hours extending from lunch through late night maximize revenue potential across different customer segments - business lunches, after-work crowds and evening entertainment seekers. The establishment's 26-year history since 1997 demonstrates sustained market presence and brand recognition, reducing typical market entry risks.
The venue's unique features, such as the ceiling-mounted Corvette display, create memorable experiences that drive social media engagement and word-of-mouth marketing, particularly valuable in the competitive entertainment sector. The Instagram presence and digital marketing channels provide additional growth opportunities through RCI's enhanced marketing capabilities.
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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