Caesars Atlantic City Gets Bulk of Parent Company’s $400M Local Investment
Posted on: June 8, 2022, 03:06h.
Last updated on: June 8, 2022, 01:12h.
Caesars Atlantic City is being allocated the majority of Caesars Entertainment’s $400 million investment budget for its three casinos in town.
When Caesars Entertainment sought to merge with Eldorado Resorts in 2020, the New Jersey Casino Control Commission signed off on the union, but with one very costly condition — the new Caesars Entertainment must spend $400 million to update its three properties in the state. Caesars agreed to the terms, and much work has already been done at Caesars, Harrah’s, and Tropicana.
But this week, Caesars revealed that its namesake casino in Atlantic City will receive the most renovation dollars. The company expects around $200 million to be poured into the Boardwalk property that opened more than four decades ago in 1979.
This major investment demonstrates our ongoing commitment to elevating guests’ experiences at our resorts as well as advancing the Atlantic City tourism economy,” John Koster, regional president of Caesars Entertainment’s Eastern Division, told the Associated Press.
Koster explained that a considerable portion of the $200 million has already been spent to update 750 hotel guestrooms and suites at Caesars Atlantic City. The property maintained its Roman theme with the renovations.
Caesars Atlantic City opened in June of 1979, three years after New Jersey voters legalized commercial gambling in the town in 1976. Caesars was just the second casino to open, following Resorts’ 1978 commencement.
Koster says the Caesars casino floor is next for refurbishing, with most guestrooms finished and ready for guests. While the table games and slot machine configurations won’t change much, the Caesars exec says the casino lobby entrance from the Boardwalk will undergo a major overhaul.
Other planned projects include renovating the casino’s rooftop pool. Two celebrity restaurants are also in the works. Gordon Ramsay plans to open his first Hell’s Kitchen restaurant on the East Coast at Caesars Atlantic City this summer.
The famed restaurant concept is owned by celebrity chef Nobu Matsuhisa and Hollywood superstar Robert De Niro. Nobu plans to open a location inside Caesars later this year.
Caesars’ partnership with Nobu doesn’t end there. The top three floors of Caesars Atlantic City will soon be rebranded — and fully renovated — into Nobu Hotel Atlantic City. The hotel within a casino hotel will do away with the Roman décor in favor of a Japanese-inspired motif.
Returning Luxury to Caesars
After a most difficult 2020 operating year that kept Caesars Atlantic City dark from mid-March until early July on state orders amid the pandemic, the property turned back profitable in 2021.
Caesars Atlantic City reported that the casino last year turned an operating profit of $62 million on net revenue of more than $245.1 million. But among the casino operator’s three properties in town, Caesars Atlantic City was the least profitable. Harrah’s reported a 2021 gross operating profit of $99.5 million, and Tropicana $118.7 million.
Caesars conceded to state gaming regulators during its Eldorado merger that the company’s Atlantic City casinos were at times overlooked during the company’s financial struggles, which resulted in the Las Vegas-based gaming firm filing for bankruptcy in 2015.
As Caesars invested in the Marina District property, Harrah’s wasn’t as shunned to keep it current and competitive with MGM Resorts’ neighboring Borgata. The Tropicana underwent an expansive renovation beginning in 2010 when it was still under the ownership of Tropicana Entertainment Resorts.
The $200 million spent for Caesars Atlantic City will ideally give reason to the company’s Caesars Rewards members and other guests to mull staying on the Boardwalk in the future.
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June 8, 2022 — 2 Comments—