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Tropicana
plans $25M. makeover for 2006
As
reported by Press of Atlantic City
LAS
VEGAS, Nevada - Tropicana
Casino and Resort will complete a $25 million facelift this
year and spruce up the property again in 2007 to complement
its cash cow, The Quarter.
Improvements
this year will include refurbished hotel rooms in the North
Tower, 800 new slot machines and new decor on the South casino
floor to match the Cuban-themed retail and entertainment attractions
in the mall-like Quarter.
For 2007,
Tropicana will give the hotel rooms in the South Tower a makeover
and refurbish the North casino floor, including the main table-games
area, parent company Aztar Corp. announced Wednesday.
The improvements
will help continue the momentum generated by The Quarter,
a $280 million hotel, retail and dining complex that has boosted
Tropicana's casino operations since its November 2004 grand
opening, company officials said.
The Quarter's
spinoff effect helped drive up Tropicana's casino revenue
by 24 percent overall in the fourth quarter, including a 31
percent increase in slot winnings.
Gross
operating revenue, also known as cash flow, tripled in the
quarter to $25.4 million, Aztar reported during a conference
call.
Aztar's
combined revenue rose 19 percent to $222.8 million for its
casinos in Atlantic City, Las Vegas, Laughlin, Nev., Caruthersville,
Mo., and Evansville, Ind. Net income for the quarter climbed
to $11.2 million, or 29 cents a share, from $2.3 million,
or 5 cents a share, a year earlier.
“All of
our properties posted solid results during the fourth quarter,
but we are particularly pleased by the performance of Tropicana
Atlantic City,” said Robert M. Haddock, Aztar's chairman and
chief executive officer.
Haddock
noted that Tropicana is off to a strong start in 2006, raking
in a 21 percent increase in slot revenue for January. However,
Tropicana's table-games win was up a modest 4 percent for
the month.
Reflecting
The Quarter's drawing power, the number of visitors to Tropicana
jumped more than 50 percent in 2005. Revenue increased by
$100 million for the year, up 27 percent, said Gary Simpson,
Aztar's senior vice president of finance and development.
Simpson,
though, added that The Quarter has not yet lived up to the
overall financial goals set by Aztar and is expected to take
three years before it is running on all cylinders.
“śWe have
consistently discussed a three-year ramp up period to reap the
full benefits of the expansion project,” he said. “At this point,
we are still in the process of developing a relationship with
our new customers, who are critical to our long-term success.
We are taking nothing for granted.” |
