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Caesars Entertainment Invests $400M For Renovating Atlantic City Casino Properties

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Caesars Entertainment Invests $400M For Renovating Atlantic City Casino Properties

Caesars Entertainment Inc. (NYSE: CZR) is investing $400 million to upgrade and renovate three of its casino destinations in Atlantic City, New Jersey.

What Happened: The company owns and operates Caesars, Harrah’s Resort and Tropicana Atlantic City. Plans for the properties include updated interior design elements, enhancements to the casinos' gaming floors and new dining concepts at the three properties.

The first phase of the project is budgeted at $170 million and will focus on guest room enhancements designed by Interior Image Group. This endeavor will cover the Caesars' Centurion and Ocean Towers and Harrah's Atrium Tower. Additional projects will be announced later in the year.

“These exciting plans over the next three years will revitalize Caesars' brand of hospitality, and will continue to position Harrah's, Tropicana, and Caesars Atlantic City as leading resorts in the market,” said Anthony Carano, president and chief operating officer of Caesars Entertainment. “We remain bullish on Atlantic City, and this commitment will further position us for long-term growth and success.”

See Also: Benzinga's First Trade: How To Trade PreMarket With Shemar Anglin

Why It Matters: Carano’s bullish sentiment on Atlantic City is a much-needed thumbs up for a resort area that was experiencing economic doldrums before the coronavirus pandemic decimated its tourism and hospitality industry. Gross gaming revenue for Atlantic City’s nine casino properties totaled $1.5 billion in 2020, a loss of nearly $1.2 billion, or 43%, from one year earlier.

In its press release, Caesar’s included a quote from Atlantic City Mayor Marty Small Sr. that said he believed 2021 “marks a new era” for his city.

“We appreciate Caesars’ dedication to the market as the largest employer in Atlantic County,” Small said. “Their three-year reinvestment plan doubles down on this commitment, which will undoubtedly reinvigorate Atlantic City.”

One positive aspect of the pandemic was the revived fortunes of the local housing market. With the rise of remote work, many people decided they wanted to combine their professional and residential settings near the Atlantic Ocean. As a result, Atlantic City home prices spiked by 30% in the fourth quarter of 2020, according to the National Association of Realtors.

(Photo of Harrah's Atlantic City by Banspy / Wikimedia Commons.)

 

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Posted-In: atlantic city Harrah's Tropicana Atlantic CityNews Financing Real Estate Best of Benzinga

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