A $35 million renovation plan to update Atlantic City's
Tropicana Casino and Resort was approved late last month by the Casino
Reinvestment Development Authority, with an additional, separate $1.6 million
awarded to repair the roof of the casino's Boardwalk Hall.
Tony Rodio, president and CEO of Tropicana, says
renovations and additions are key to any casino's success.
"We try to attract small- to medium-sized convention
and meeting groups, and all of the renovations and capital dollars will leave
us as one of the better alternatives and options," he said in an interview
last week. "It's the key to Atlantic City's future success — more mid-week
business and conventions."
These groups will fill in the space during the shoulder
seasons when occupancy isn't robust.
"It ties in perfectly with the soft period. Groups
are looking for places to have their functions and this positions us well that
in regard," Rodio said.
With a revenue increase of 29.9 percent to $297.2 million
last year and its December 2014 revenues up 32.9 percent year-over-year,
according to the New Jersey Division of Gaming Enforcement, Tropicana is one of
Atlantic City's success stories.
Four Atlantic City casinos closed last year and another
one is threatening to close. Revel especially seems to be an ongoing saga. But
the ones that will remain successful offer non-gaming experiences and do a good
job of maintaining properties.
"I think that it's critical. If you look at the
properties that are successful, [they offer] more than just gaming. That's the
key to success," Rodio said. "It's no secret that gaming in the
nearby states is what really hurt Atlantic City the most. That's not going to
change."
To survive, Atlantic City needs to make a shift — similar
to Las Vegas — and focus more on creating a destination where gaming is just a
part of the experience.
"I don't think we're ever going to be Las Vegas in
terms of national and international [numbers and recognition], but we can be
regional," Rodio said. "We look at metrics all the time and we
recognize Atlantic City has challenges and Tropicana still has challenges. …
It's important we continue to see improvement each month."
A majority of the renovations will be done this summer,
with a new fitness center on Brighton Avenue set to open in April.
Other capital improvements to the Trop include major
renovations to the casino's boardwalk façade including 20-foot tall lighted
vertical poles and nine LED screens. It also includes the addition of new
retail areas and renovations of 434 rooms in its North Tower.
"The light show aspect is going to be a beacon up and
down the boardwalk to see our property and what's going on. It will cause a lot
of people to walk our way and visit us," Rodio said.
Source: Philadelphia
Business Journal
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