Meeting News - October 20, 2008 - (Page 48)

Insider Report: Gaming Edited by William Ng william.ng@nielsen.com In the East, Casinos Put the Brakes On New Resort Projects By Bob Curley Traditionally cash-rich casinos may not have the same kinds of problems getting credit as other companies, but the gaming industry nonetheless is hurting along with the rest of the U.S. economy. The slump has led some casino resorts to curtail expansion plans and others to hold their breath as completed projects open their doors. Las Vegas casino operators recently reported a 13-percent decline in business (Sept. 8 MN, p. 52), and all but two of Atlantic City’s 11 casinos have reported falling revenues this year. MGM Mirage recently announced that it is delaying the Despite the sagging economy, Atlantic City’s Borgata groundbreaking of its $5 billion MGM casino resort has opened up the Water Club. Grand Atlantic City project, and the $2 billion Similarly, Harrah’s Entertainment has Boardwalk project by Pinnacle Entertainment— trimmed spending and slowed construction on planned on the site of the former Sands Casino the Margaritaville casino resort in Biloxi, MS. Hotel—has been delayed at least a year. The Jimmy Buffett-themed casino was originalAlan Feldman, senior spokesman for MGM ly slated for completion in 2010.“We have [comMirage, said groundbreaking in Atlantic City has pleted] things that were in the pipeline, while been put off until at least 2009 so that the com- with other projects we’re looking carefully on a pany can reassess its plans for the 3,000-room case-by-case basis at how to proceed,” said Harresort, slated to feature “a modern and versatile rah’s spokeswoman Jacqueline Peterson. convention center” of unspecified size. Feldman In September, shortly after opening its new said the footprint and key features of the project Casino of the Wind, the Mohegan Sun resort in will remain in place when the resort opens in Uncasville, CT, announced the suspension of its 2012, but “some walls may be moved.” Casino of the Earth expansion. Shelved for at “The convention center is not going to disap- least a year, the project, encompassing a 39-story, pear, but whether it is 100,000 or 200,000 sf, 261-room hotel; a 1,500-seat House of Blues I think some of those things are being worked on music hall; and 22,000 sf of retail and restaurant as we speak,” Feldman said. space, will not open in fall 2010 as planned. A gala groundbreaking for the project, featuring House of Blues cofounder Dan Aykroyd, was held in May, but Mohegan Sun officials said no work will be done until further notice. “Given increasing uncertainty in the economy, we have decided that the most prudent course of action. . .is to suspend work, which will strengthen our balance sheet,” said Mitchell Etess, president and CEO of the Mohegan Tribal Gaming Authority. Others open for business In Atlantic City, Trump Entertainment Resorts pressed forward in September with the opening of a new 782-room hotel tower at the Trump Taj Mahal Casino Hotel, giving the resort a total of more than 2,000 rooms. Earlier in March, Harrah’s Atlantic City completed a $565 million expansion that added 966 rooms, and in June the new $400 million, 800room Water Club debuted at the Borgata Hotel Casino & Spa. The Water Club has 18,000 sf of meeting space, including five boardrooms and eight breakout rooms. Also in Atlantic City, though not connected with any casinos, construction is due to be completed next summer on the One Atlantic events center, which will have 10,000 sf of over-thewater meeting space at the end of the Pier Shops at Caesars (see story, left). “In the long term, Atlantic City will be fine,” said MGM Grand’s Feldman, pointing to the long-awaited arrival of high-end options that he said will appeal to meeting planners and help the city diversify from its focus on short-term guests interested primarily in casino play.“Atlantic City is excellently positioned for meetings and conventions but underserved. The Water Club is a step in the right direction, and the meetings and convention space at the MGM Grand will bring more meetings business to the market.” Meanwhile, developers are still pitching new casinos from Maine—where Olympia Gaming of continued on page 52 www.meetingnews.com AC Venue An Option for Groups that Balk at Gaming One Atlantic, on track for summer 2009 opening, will offer Atlantic City “a new kind of venue,” said managing partner Jesse Herman. A corporate events facility not affiliated with any of the city’s casino resorts, One Atlantic will stretch 100 yards over the Atlantic Ocean, offering panoramic views of the boardwalk, beach, and water for 50 to 1,000 attendees. The space, which will have 48 MeetingNews October 20, 2008 an outdoor terrace for 200, will be flexible for cocktail receptions and sit-down events. One Atlantic will have full-service planning, production, and catering services. It also will have kosher, international, organic, and vegetarian menus, in which foods can locally sourced if preferred. A mixologist and a sommelier will be on hand, as well. —William Ng http://www.meetingnews.com

Table of Contents Feed for the Digital Edition of Meeting News - October 20, 2008

Meeting News - October 20, 2008 Contents Letters to the Editor What's Up @ MeetingNews.com People Making News Transportation & Services Conference Centers Advertisers Index Live From the Forum

Meeting News - October 20, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.