Sale Leaseback of 38 Bowling Entertainment Centers with Bowlero Corp.
BOWLERO'S CAPEX CONVERSION PLANS ARE KEY TO ITS
DIFFERENTIATED STRATEGY
Bowlero has a $70MM Capex Plan for the Portfolio Acquired by VICI
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Bowlero has a demonstrated track record of successfully driving growth at its
properties by utilizing free cash flow to upgrade acquired assets to upscale
experiential Bowlero-branded locations
Property conversions enhance the customer offering with more upscale entertainment
concepts, including premium lounge seating, high-end dining areas, arcade and
billiards areas, and tailored customer service for individuals and group events
Bowlero's capex conversion strategy follow a multi-phased approach:
Phase I: Update or add arcades, cosmetic improvements (i.e., floors, lights,
paint), and audio-visual system upgrades
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Bowlero's Capex Approach
Phase II: Rebranding, including signage changes, and making a transition to a
more upscale product offering, including an updated kitchen and bar, front desk,
and layout renovations
BOWLERO
NORWALK
$4.0M M
Net Cash
Invested
47%
ROI
Illustrative Bowlero Capex Conversion Case Studies: Certain VICI Acquired Properties
BOWLERO
NORTH.
BRUNSWICK
2.1
Payback
Years
Former AMF center acquired by Bowlero in 2013 acquisition of AMF
Bowling
Pre-conversion revenue of $3.1mm and EBITDA of $1.0mm
Year 1 performance after conversion of revenue of $5.7mm and
EBITDA of $2.9mm
Before
.
SOBOBOO@stela
CHANC0000
$4.7 MM
Net Cash
Invested
56%
ROI
After
1.8
Payback
Years
1420
Former Brunswick center acquired by Bowlero in 2014 acquisition of
Brunswick Bowling Centers
Pre-conversion revenue of $4.0mm and EBITDA of $1.0mm
Year 1 performance after conversion of revenue of $7.0mm and
EBITDA of $3.2mm
EBITDA margin expansion of +948 basis points
EBITDA margin expansion of +2,099 basis points
Source: Bowlero public filings and information provided by Bowlero management. Case studies based on historical information provided by Bowlero and prepared on a basis consistent with their financial statements..
Historical results may not be a reliable indicator of future results.
VICI
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