Howard Hughes Holdings Inc. announced the establishment of a new division called Seaport Entertainment that will hold assets in both New York City and Las Vegas. The company plans to spin off this division to shareholders by the end of 2024.
Anton D. Nikodemus Appointed CEO
Anton D. Nikodemus, a former executive at MGM Resorts International, has been named as the chief executive of Seaport Entertainment. This division owns the iconic Seaport in lower Manhattan as well as the Las Vegas Aviators Triple-A minor league baseball team.
Valuable Holdings
Seaport Entertainment also possesses a stake in Jean-Georges Restaurants and controls 80% of the air rights above the Fashion Show Mall in Las Vegas. The latter site is being considered for the development of a potential new casino on the famous Las Vegas Strip.
Anton D. Nikodemus’s Impressive Background
Nikodemus most recently served as the president and COO of CityCenter for MGM Resorts International. During his tenure, he successfully managed operations for The Cosmopolitan of Las Vegas, Vdara Hotel & Spa, and ARIA Resort & Casino. He also played a crucial role in launching the MGM National Harbor Hotel & Casino in Maryland and the MGM Springfield in Massachusetts.
Endorsement From David R. O’Reilly
Howard Hughes Chief Executive, David R. O’Reilly, praised Nikodemus, citing his extensive experience in building some of the most acclaimed entertainment destinations in the country.
Howard Hughes Holdings Performance
It’s worth noting that Howard Hughes Holdings stock has experienced a 7.7% decline in 2023. In comparison, the S&P 500 has risen by 11.1%, and the Nasdaq has gained 26.5% during the same period.
Spinoff Deals Gaining Popularity
Spinoff deals have become increasingly popular as companies seek to unlock value amid economic uncertainty and higher borrowing costs. Intel, for example, is planning an IPO for its programmable solutions group in the coming years, following the success of its Mobileye Global Inc. IPO last year. Similarly, Sandoz Group recently debuted on the SIX Swiss Exchange after being spun off from Novartis. Aramark also spun off its Vestis Corp. uniform services business earlier this week. Additionally, Alibaba Group Holdings has announced its intention to spin off its Cainiao logistics unit and list it on the Hong Kong Stock Exchange.
The future looks promising for Howard Hughes Holdings as it creates a separate entity focused on entertainment assets in two of the most vibrant cities in the US.
