RCI Hospitality Holdings, Inc. announced the acquisition of Flight Club, a prominent gentlemen's club located in the Detroit market. The total purchase price for the acquisition was $11.0 million.
The payment structure included $3.0 million in cash, $5.0 million in seller financing at an 8.0% interest rate for the club, and an additional $3.0 million in cash for the associated real estate. This acquisition is expected to contribute an estimated $2.0 million in annualized adjusted EBITDA.
Flight Club is strategically located approximately 5 miles from Detroit Metro Airport and 20 miles from downtown Detroit, its casinos, and major sports venues. This acquisition aligns with RCI's strategy to expand its high-margin core nightclub business.
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