Archon Corporation (“Archon”) (BULLETIN BOARD: ARHN) announced today the
closing of the purchase of the fee ownership of the Pioneer Hotel &
Gambling Hall (the “Pioneer”) in Laughlin, Nevada on December 29, 2003.
Archon purchased the fee interest from an affiliate of GE Capital pursuant
to an early purchase option under its existing lease agreement. The
purchase price was approximately $36.0 million dollars, $18.0 million of
which was borrowed from a bank. Archon intends to continue to operate the
Pioneer in the same manner as it did when it was leasing the property and
does not anticipate implementing any significant changes.
Paul Lowden, Chairman of the Board and Chief Executive Officer of Archon
stated: “We are excited about this asset acquisition, and we will continue
our efforts to provide an entertaining experience to our Pioneer
In addition, Archon ceased operating Duke`s Casino in Sparks, Nevada that
was operated through one of its subsidiaries. All of the furniture,
fixtures, gaming and non-gaming equipment and inventories have been
transferred to the Pioneer.