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/
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
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.
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.