RCI Hospitality Expands Its Portfolio with the Acquisition of Flight Club in Detroit
HOUSTON, TX – Jan. 22, 2025 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK), a leading hospitality company specializing in the development, acquisition, and operation of entertainment venues, announced today the successful completion of the acquisition of Flight Club, a premier gentlemen’s club located in Detroit, Michigan. The club is situated 5 miles from Detroit Metro Airport and 20 miles from the city’s downtown area, casinos, and major sports venues.
Acquisition Details
The purchase price for the acquisition amounted to $11.0 million. The deal consisted of three parts:
- $3.0 million in cash for the club’s assets and business.
- $5.0 million in seller financing at an 8.0% annual interest rate for the club’s assets and business.
- $3.0 million in cash for the associated real estate.
Impact on the Local Community
RCI Hospitality’s acquisition of Flight Club is expected to bring significant benefits to the Detroit community. The company plans to invest in renovations and upgrades to the club, enhancing the customer experience and creating new jobs. These improvements will not only attract more visitors to the venue but also contribute to the local economy.
Impact on RCI Hospitality
The acquisition of Flight Club represents a strategic expansion for RCI Hospitality, further solidifying its position as a major player in the entertainment industry. With this addition, the company will broaden its offerings and cater to a wider audience. The acquisition is also expected to generate substantial revenue and contribute to RCI Hospitality’s growth.
Global Implications
The acquisition of Flight Club by RCI Hospitality could have far-reaching implications for the hospitality industry as a whole. With this acquisition, RCI Hospitality is demonstrating its commitment to growth and expansion, potentially inspiring other companies to follow suit. Additionally, the investment in Detroit’s entertainment scene could attract more businesses and tourists to the area, boosting the local economy and potentially setting a trend for other cities.
Conclusion
RCI Hospitality Holdings’ acquisition of Flight Club in Detroit is a strategic move that is expected to bring numerous benefits to the company, the local community, and the hospitality industry as a whole. The investment in renovations and upgrades, along with the creation of new jobs, will contribute to the local economy and enhance the customer experience. The acquisition represents a significant expansion for RCI Hospitality, positioning the company as a major player in the entertainment industry and potentially inspiring other companies to invest in similar ventures. With the acquisition of Flight Club, RCI Hospitality is poised for continued growth and success.
For more information about RCI Hospitality Holdings and its acquisitions, please visit the company’s website at www.rciholdings.com.
