When Caesars Entertainment merged with Eldorado resorts last year, the New Jersey Casino Control Commission or CCC put a big stipulation before signing off the merger. And that stipulation was for the company to invest a total of $400M in its Atlantic City casinos over a three-year period.
On Wednesday, Caesars Entertainment unveiled the details of that investment, which includes remodeled room towers, new restaurants and amenities, and more. The investment will kick off with a a $170M renovation that is expected to begin this summer.
Per Caesars President and Chief Operating Officer Anthony Carano in a press release:
“These exciting plans … will revitalize Caesars’ brand of hospitality, and will continue to position Harrah’s, Tropicana, and Caesars Atlantic City as leading resorts in the market. We remain bullish on Atlantic City, and this commitment will further position us for long-term growth and success.”
$170M Kick Off Renovation
The projects kick off with a $170M renovation of 600 guest rooms and suites at Caesars Atlantic City and Harrah’s Resort in Atlantic City.
According to the press release, the new room design at Caesars will feature a modern Roman aesthetic. The inspiration for the design was drawn from the local scenery in Atlantic City. These include beaches, the ocean, the boardwalk, and will feature hues of blue and cream accent colors that will be paired with contemporary furniture.
As for Harrah’s, its new design will display “rich elements that are fun, lively, and vibrant”. This theme will play off the resort’s sophisticated Marina District location. The refreshed rooms for Harrah’s Atrium Tower as well as Caesars’ Centurion and Ocean Towers will be open this summer.
Part of CCC’s Approval of Eldorado Merger
Caesars $400M investment in Atlantic City is part of the CCC’s approval of the merger between Caesars Entertainment and El Dorado. Apart from the required spending, Caesars was required to sell off one of its Atlantic City casinos to ease monopoly concerns. As a result, the company sold Bally’s to Twin River Worldwide Holdings in Rhode Island last year for only $25M.
Aside from Caesars and Harrah’s, the company also operates the Tropicana at the Boardwalk. Each of the three casinos are owned by VICI Properties, which is Caesars real estate investment trust or REIT. Caesars pays VICI annual rent to lease all operations inside the casino properties.