Landry’s looks to expand hospitality empire
“Who would have thought a restaurant delivery company is a tech company?”
— Tilman Fertitta
Tilman Fertitta turned one seafood restaurant in Katy into a multibillion-dollar hospitality empire spanning restaurants, hotels, amusement parks and casinos.
The Houston billionaire, reality TV star of CNBC’s “Billion Dollar Buyer” and owner of the Houston Rockets isn’t finished expanding his empire. Fertitta is mulling a potential merger with Las Vegas gaming giant Caesars Entertainment.
“Everybody knows we’re in there looking at it,” Fertitta said of Caesars’ books. “We’re doing our
due diligence.”
Landry’s ranks No. 4 on this year’s Chronicle 100 list of the Houston region’s largest private companies. The company, which owns nearly 500 restaurants in 35 states, employs 56,000 nationally, including 11,800 in the Houston area. It reported revenue of more than $4.2 billion in 2018, and had assets of more than $5.8 billion.
Fertitta, who is releasing his first business book in September, made a bid for Caesars last year, but it was rejected by the gaming company’s board. However, activist investor Carl Icahn has since bought up shares, acquired control of several board seats and is pushing for the company’s sale or merger.
Fertitta isn’t only eyeing Caesars. The Galveston native recently partnered with New York-based Jefferies Financial Group to raise $316.3 million through a blank check company to acquire a private company and take it public. The partnership said in public filings they are looking to acquire, merge, buy stock or combine with another business in the restaurant, hospitality, entertainment and gaming industries.
Fertitta said he will also consider technology companies in the hospitality space as well as e-sports companies, but is formulating acquisition targets.
It’s the second blank check company from Landry’s and Jefferies. In 2016, the partnership raised $250 million to acquire food delivery startup Waitr in November 2018 for $308 million.
“Who would have thought a restaurant delivery company is a tech company?” Fertitta said. “Technology is a big part of it, but that doesn’t mean that’s the only thing we’ll look at.”