VICI Properties Inc. Announces $250 Million Mezzanine Loan Origination for Great Wolf Resorts, Inc.

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VICI Properties Inc. announced a $250 million mezzanine loan for Great Wolf Resorts, Inc., part of a $1.55 billion financing. The loan is collateralized by nine Great Wolf Lodge resorts, with various amenities. The Mezzanine Loan has an annual fixed rate and an initial term of two years with extension options. VICI has committed over $720 million to Great Wolf and aims to provide partner-oriented capital solutions.

  • Commitment to deepening the relationship with Great Wolf through significant capital investments.

  • Ability to recycle and deploy capital at attractive yields through VICI Experiential Credit Solutions.

  • Providing various capital stack solutions, including development and mezzanine loans, to invest in sectors with positive trends.

  • Potential risk associated with the large capital commitments made to Great Wolf.

VICI Properties Inc.'s announcement of a $250 million mezzanine loan to Great Wolf Resorts is a strategic move that indicates the company's commitment to expanding its footprint in the leisure and hospitality sector. Mezzanine financing is a hybrid of debt and equity financing that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. This type of financing can often be advantageous for companies like Great Wolf Resorts that require significant capital for expansion but may not want to dilute existing equity too much.

The terms of the loan suggest a calculated risk approach by VICI, with the added security that comes from a collateralized loan backed by tangible assets. The fixed annual rate and extension options provide a balance of predictable income stream for VICI and flexibility for Great Wolf Resorts. From a retail investor's perspective, this deal could signal future income stability and growth potential for VICI through interest payments and potential equity stakes, assuming successful loan terms fulfillment by Great Wolf. The repayment of a previous loan also suggests Great Wolf's operational strength and ability to manage debt, which is comforting for stakeholders.

However, it is important to consider the inherent risks associated with the leisure industry, as it is susceptible to economic downturns and changes in consumer spending behavior. The long-term success of this loan will heavily depend on Great Wolf's performance and the continued appeal of indoor waterpark resorts. Financial health indicators such as loan-to-value ratios, interest coverage ratios and Great Wolf Resorts' operational efficiency post-financing would be key factors to monitor moving forward.

The mezzanine loan by VICI Properties to Great Wolf Resorts reflects a broader trend in the experiential credit market, where lenders target investments in sectors with positive secular trends. Indoor waterpark resorts, such as those operated by Great Wolf, cater to a family-oriented demographic looking for all-season vacation options. This segment has shown resilience and is expected to grow, which suggests potential upside for VICI's investment.

The success of this strategy depends on the continued demand for domestic tourism and the unique positioning of indoor waterpark resorts as a niche within the broader hospitality industry. By investing in a portfolio of resorts, VICI is diversifying its exposure within the sector, which can be beneficial if certain locations underperform.

For retail investors interested in the real estate sector, particularly those focused on REITs, this move signifies VICI's willingness to innovate in finance structuring and its ability to secure sizable deals with established entertainment entities. The commitment to provide capital solutions that align with partners' growth strategies could lead to additional deal flow and reinforce VICI's reputation as a versatile financier in the real estate market. Investors should, however, remain cognizant of market saturation risks and the execution risk that comes with financing large-scale leisure developments.

NEW YORK--(BUSINESS WIRE)-- VICI Properties Inc. (NYSE: VICI) (the “Company”, “VICI” or “VICI Properties”) announced today that it has originated a $250 million mezzanine loan (the “Mezzanine Loan”) as part of a $1.55 billion financing that also includes a single borrower group CMBS securitization (the “Great Wolf Loan”) for Great Wolf Resorts, Inc. (“Great Wolf”) through its VICI Experiential Credit Solutions strategy. The Great Wolf Loan will be collateralized by a portfolio of nine Great Wolf Lodge resorts with over 4,000 keys, approximately 695,000 square feet of indoor and outdoor waterpark space, 59 F&B outlets and nearly 80,000 square feet of meeting space.

The Mezzanine Loan will have an annual fixed rate and an initial term of two years with three 12-month extension options, subject to the satisfaction of certain conditions. In connection with the Great Wolf Loan origination, Great Wolf repaid VICI’s $79.5 million mezzanine loan for Great Wolf Lodge Maryland. The remaining $170.5 million capital commitment was funded with cash.

David Kieske, Chief Financial Officer of VICI Properties, said, “Since our announcement to partner with Great Wolf to support the development of resorts in 2021, we have committed over $720 million of capital to the Great Wolf team, including the impact of the repayment of the Great Wolf Lodge Maryland loan. We are proud to deepen our relationship with Great Wolf and believe the commitment announced today exemplifies our partner-oriented capital solutions approach.”

Gabriel Wasserman, Chief Accounting Officer and Managing Director of VICI Experiential Credit Solutions, said, “Through VICI Experiential Credit Solutions, we believe we can successfully recycle and deploy capital at attractive yields and spreads to our cost of capital. VICI’s ability to provide multiple solutions across the capital stack, including development and mezzanine loans, allows us to invest alongside our partners in sectors experiencing secular tailwinds, as seen with Great Wolf in the indoor waterpark resort industry.”

About VICI Properties

VICI Properties Inc. is an S&P 500® experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio is comprised of approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. Its properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield and Kalahari Resorts. VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ goal is to create the highest quality and most productive experiential real estate portfolio through a strategy of partnering with the highest quality experiential place makers and operators. For additional information, please visit

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” “will,” and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond VICI’s control and could materially affect actual results, performance, or achievements. Important risk factors that may affect VICI’s business, results of operations and financial position (including risks relating to VICI’s pending and recently completed transactions) are detailed from time to time in VICI’s filings with the Securities and Exchange Commission. VICI does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

VICI Properties Contacts:

(646) 949-4631


David Kieske

EVP, Chief Financial Officer

Moira McCloskey

Senior Vice President, Capital Markets

Source: VICI Properties Inc.


What is the amount of the mezzanine loan originated by VICI Properties Inc. for Great Wolf Resorts, Inc.?

VICI Properties Inc. originated a $250 million mezzanine loan for Great Wolf Resorts, Inc.

What is the total financing amount that includes the Mezzanine Loan for Great Wolf Resorts, Inc.?

The total financing amount includes a $1.55 billion financing, which consists of the Mezzanine Loan for Great Wolf Resorts, Inc.

What is the term of the Mezzanine Loan provided by VICI Properties Inc.?

The Mezzanine Loan provided by VICI Properties Inc. has an initial term of two years with three 12-month extension options.

How much capital has VICI Properties Inc. committed to Great Wolf Resorts, Inc.?

VICI Properties Inc. has committed over $720 million of capital to Great Wolf Resorts, Inc., including the impact of the repayment of the Great Wolf Lodge Maryland loan.

What are the sectors experiencing secular tailwinds according to VICI Properties Inc.?

VICI Properties Inc. invests in sectors experiencing secular tailwinds, such as the indoor waterpark resort industry with Great Wolf.

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