Tuesday, February 10, 2015

Tropicana casino CEO talks $35M renovation and keys to success in today's Atlantic City



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.

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