J.P.Morgan Investment Banking Pitch Book
APPENDIX
Comparable precedent transactions
Private and public - target transactions
Date announced
4/25/20061
1/30/2006
6/14/2005
10/24/2004
7/15/2004
6/4/2004
2/12/2004
Observations
Acquirer / Target
Ameristar Casinos/ Aztar
Colony Capital & Kingdom Hotels/
Fairmont Hotels & Resorts
Blackstone/Wyndham
JPMorgan
Blackstone/Boca Resorts
Harrah's Entertainment/
Caesars Entertainment
MGM Mirage/Mandalay Resort Group
CNL Hospitality/KSL Recreation
Corporation
Lodging - median
Gaming -median
1 Represents Ameristar's $47 per share offer announced 4/25/06
Description of target
Aztar Corporation owns and operates three land-based casinos and two riverboat
casinos, including the Tropicana Atlantic City and Tropicana Las Vegas. Aztar owns
34-acres of Las Vegas Strip land, considered prime land for redevelopment
Fairmont is a leading owner/operator of luxury hotels and resorts. Fairmont's
managed portfolio consists of 87 luxury and first-class properties
Wyndham Intemational offers upscale and luxury hotel and resort accommodations
in the U.S., Canada, Mexico, the Caribbean, and Europe
Boca Resorts owns 5 luxury resorts and 4 golf clubs located in South Florida
Caesars Entertainment owns 22 properties on three continents, more than 25,000
hotel rooms, two million square feet of casino space and 50,000 employees.
Mandalay Resort Group owns and operates 11 properties in Nevada as well as
casino's in Mississippi, Illinois and Michigan
KSL's portfolio consists of leading resorts in Hawaii, Arizona and other vacation
destinations
■ Kerzner is a blend of lodging and gaming
Kerzner has a lower tax rate than most of its peers
Size
(mm)
$2,421
3,900
3,240
1,184
9,440
7,750
2,160
Forward EBITDA
multiple
10.8x
15.8x
12.6x
11.8x
8.5x
9.5x
13.1x
12.9x
9.5x
PROJECT PLATO 20View entire presentation