RCI Hospitality Holdings Completes the Acquisition of Flight Club in Metro Detroit

RCI Hospitality Holdings Completes Acquisition of Flight Club

In a significant move in the hospitality and entertainment sector, RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has finalized the acquisition of Flight Club, a distinguished gentlemen's club located in Metro Detroit. The flagship venue, celebrated for its upscale atmosphere and exclusive services, is strategically positioned just 5 miles from the Detroit Metro Airport and 20 miles from the vibrant downtown area, renowned for its casinos and major sports venues.

The total purchase price for the deal was approximately $11 million, a multifaceted financial structure comprising $3 million in cash and $5 million in seller financing at an appealing 8% interest rate for the club itself. Additionally, $3 million in cash was allocated for the accompanying real estate. This acquisition is anticipated to contribute around $2 million in annualized adjusted EBITDA to RCI's earnings, reflecting a promising addition to their financial portfolio.

Eric Langan, the President and CEO of RCI Hospitality Holdings, expressed enthusiasm regarding the acquisition. He articulated that this acquisition resonates perfectly with the company’s strategy of enhancing its presence in major metropolitan areas with high-end club experiences. Langan detailed how Flight Club, which has been a stable business since its inception in 1997 and recently underwent renovations, stands to gain significantly from RCI’s prowess in marketing, purchasing, and operational systems.

Established in 1997, Flight Club boasts a lavish two-story layout spanning 10,000 square feet. Patrons can enjoy a unique experience, including a breathtaking Corvette sports car that descends from the ceiling, and a five-star kitchen that promises exceptional culinary offerings. The club provides valet parking and is conveniently accessible from main highways, ensuring a seamless experience for guests.

The operational hours of Flight Club are generous, accommodating visitors from 11:30 a.m. to 2:00 a.m. on weekdays, from 10:00 p.m. to 2:00 a.m. on Saturdays, and from 7:00 p.m. to 2:00 a.m. on Sundays. For more information, guests can visit their official website or follow them on Instagram.

In alignment with their growth strategy, this acquisition marks a pivotal development for RCI Hospitality. The company, which currently operates over 60 establishments across the country, is recognized as a leader in the adult nightclub and sports bar-restaurant sector. Each new addition to their portfolio is a step forward in consolidating their status within this niche market.

RCI remains optimistic about the future, leveraging their newly-acquired asset to bolster their reputation and financial standing in the competitive entertainment market. With the execution of this acquisition, RCI Hospitality Holdings reinforces its commitment to providing exceptional experiences in adult entertainment while adhering to high standards of service and sophistication.

Furthermore, the company is keen to navigate challenges that accompany the management of adult entertainment venues, particularly amid evolving business climates and regulatory landscapes. RCI’s robust strategic framework aims to address these risks, ensuring sustainable growth and profitability in the long term.

As RCI Hospitality Holdings embarks on this new chapter with Flight Club, industry watchers and stakeholders alike are eager to see how this acquisition will unfold and what innovative strategies the company will implement to maximize its investment. The acquisition signals a commitment to enhancing entertainment options in the Detroit area while ensuring a stellar experience for its clientele.