As the sun sets on 2017, Atlantic City has added yet more chapters to its multiyear story of credible, quantifiable revival. Yet, too many press outlets persist in reporting a destination in decline. Certainly, economic and social issues remain. But “decline?” That bandwagon has square wheels, and Atlantic City neither needs, nor deserves, such careless, inaccurate and misleading labeling.
Closely observing and experiencing Atlantic City’s turnaround from the inside over the last decade, I can report the real buzz happening today: action and activity, optimism and progress.
This April, in town for the upbeat 2017 Global Meetings Industry Day (GMID) program, I attended Hard Rock International’s press conference announcing its transformation of Trump Taj Mahal. Slated to open on Memorial Day 2018, the $500 million investment reverberates like a power chord of confidence in the market.
Another is Caesars Entertainment’s now completed three-year, $200 million upgrade of its three Atlantic City properties, including my GMID base, Harrah’s Resort Atlantic City. One of 450 refreshed in the property’s $30 million enhancement, my Bayview Tower room is a redesign triumph, along with the high-energy Pool After Dark pool and nightclub venue, and four new restaurants.
In May, I experienced the energy of Tropicana Atlantic City. Like the daily Multimedia Light & Sound Show on its Boardwalk facade, one of the many sustained investments and renovations that have utterly transformed Tropicana in recent years, the property dazzled with remarkable new products, such as my regal King Suite in the upgraded North Tower.
The same visit included a hardhat tour of the destination’s now completed Observation Wheel with Steel Pier owner and President Anthony Catanoso (see “Man of Steel”) and a show by acclaimed Springsteen tribute group the B Street Band at The Deck, Golden Nugget’s rocking Marina-facing outdoor entertainment venue.
In July, I joined around 60 meeting planners on a Meet AC-hosted client fam. Ferried around in Atlantic City’s historic Jitneys (a definitive resource for planners), we went from Borgata Hotel & Casino’s outdoor Beer Garden to Ruth’s Chris Steak House. Then, the rock star ride into the historic 14,770-seat Boardwalk Hall’s garage, via the VIP entrance, for a sold-out concert by The Who.
Borrowing a lyric from the English rock legends themselves, “don’t get fooled again” by reports of decline. Across-the-board metrics say otherwise. Increasing for the first time in five years in 2016, tourism keeps growing, producing record-breaking lodging revenue efficiency, increases in non-casino revenue per available room and other gains. Conventions continue to help drive $2.1 billion in annual non-gaming revenue, with Atlantic City Convention Center-related room nights (up 7.3 percent), delegates (14.3 percent) and delegate spending (23 percent) all 12-month gainers as of August 2017.
Amid intensifying Northeast competition, gross gaming revenues hit a 10-year high of $2 billion this September, with all casinos profitable and on track to meet or exceed 2016’s $2.5 billion total.
Numbers don’t lie, which makes assumptions for continuing stability, expansion and profitability, bolstered by around $1.8 billion in ongoing capital improvements, confident indeed.
New Era
Following 2016 successes such as the reopening of the 872-room Showboat Hotel and debut of 15,000 square feet of conference space at the historic Radisson-flagged Claridge Hotel, for a total of 100,000 square feet, plus the new VUE rooftop bar, 2017 and beyond are about openings, not closures.
Along with the Hard Rock project, highlights include the anticipated 2018 relaunch of the Revel mega-resort as TEN. The $210 million Gateway project is underway, including a new beachfront Stockton University campus and new South Jersey Gas headquarters, along with the extension of the historic Boardwalk to Gardner’s Basin.
The clearest view of progress comes from the tourism and resort frontline.
PageBreak“The momentum from hosting MPI WEC, TEAMS and other major industry shows in 2016 carried over into 2017, helping to advance our year-over-year growth at the convention center and meetings market overall,” said Meet AC President and CEO Jim Wood, now entering his fourth year as the bureau’s steadfast leader. “Our new narrative around repositioning for meetings and conventions has positively shifted perception among planners that previously shied away from gaming destinations. The result has been increasing inquiries and bookings, and more willingness by clients to sign multiyear contracts with us.”
Atlantic City’s confidence has risen with its image.
“We now more aggressively pursue groups, following sustained growth in our corporate, association and especially our sports market this year,” Wood said. “Formed in 2015, the Atlantic City Sports Commission continues to pay big dividends in new bookings and events (see “Playful Possibilities”), while our casino properties are seeing sustained growth in the corporate market. The outlook for 2018 is a confident one.”
Working closely with Meet AC and invested and engaged in the community at large, Caesars Entertainment, with 40 percent of Atlantic City’s resort-casino market, continues to inspire the Boardwalk Empire’s revival.
“Opened in 2015, Harrah’s Atlantic City Waterfront Conference Center, the largest hotel conference complex from Baltimore to Boston, has emerged as a market leader,” said Shelley Williams, director of sales for Caesars Entertainment’s U.S. Portfolio and Atlantic City. “Showcased during MPI WEC 2016, the facility’s 125,000 square feet of flexible space is extremely conducive to the creativity, engagement, networking and socializing required for today’s meetings. MPI members are still talking about the experience, as the venue attracts large corporate conferences of 2,000-plus delegates from the Northeast and across the nation.”
Noting that Atlantic City’s Boardwalk Hall (1929) was among the nation’s original convention centers, Williams sees a “new era” underway.
“The commitment of Caesars Entertainment and Atlantic City to change course from a leisure base to an attractive meetings and convention destination was an important economic decision for the city, and the meetings industry has taken notice,” she said. “With a unique sales structure that offers our entire portfolio to planners, a client considering Las Vegas is also informed about Atlantic City. Many of our customers re-book and refer other customers. Our competitors are also investing in Atlantic City, and with many exciting developments underway, we look forward to what the future will bring.”
After $200 million in property-wide enhancements since 2013, Tropicana has emerged as an East Coast leader. With these wide-ranging investments, mainly in non-gaming areas, including redesigning 1,400 rooms in the Havana, North and South towers, refurbishing its Ballroom, Grand Exhibition Center and Havana Tower meeting rooms, and introducing three restaurants from star chef Jose Garces (see “Shore Eats,” page 58), the property recorded yet another gainful year for meetings.
“All key indicators, including room nights, room revenue, ADR and number of groups, are up year over year for 2017,” said Jim Ziereis, assistant vice president for hotel sales for the Tropicana. “With meetings and conventions growth citywide, I believe that perception of Atlantic City is changing for the better. The bottom line is customer experience, and the feedback we receive indicates that the destination is strong and getting stronger.”
PageBreakNoting that, “Atlantic City and Tropicana do a great job of earning repeat business, while attracting new groups that may never have considered the destination before,” Ziereis “routinely finds that planners yet to experience the city and the property are intrigued to learn of the variety of choices. True success, though, is showing them first-hand what their attendees can experience. At Tropicana, that includes 24 places to dine, 25 places to shop and 18 places to party after their meeting is done.”
Ziereis expresses “extreme optimism” for 2018.
“With continuing attention to refurbishment, Tropicana’s purchase of the adjacent Chelsea Hotel adds some 330 rooms, more meeting space and an incredible outdoor pool area, all connected by a new skywalk,” he said.
The Chelsea Tower, Tropicana’s fifth, lifts total resort inventory to 2,730 rooms.
Evoking vintage Atlantic City with its grand scale and design, Resorts Casino Hotel, the destination’s first gaming resort from 1978, continues to invest confidently in the future. Over the last three years alone, nearly $90 million in new developments at the Mohegan Sun property have included the $35 million Jimmy Buffet’s Margaritaville Entertainment Complex; $10 million in new slot machines; $400,000 I-Gaming Lounge; and a $25 million refresh of all 400 Ocean Tower guest rooms.
Unveiled in August 2015, the $9.4 million, 12,000-square-foot Resorts Conference Center boosted total meeting space to 64,000 square feet. With a recent wireless upgrade that allows 1,000-plus delegates to simultaneously connect multiple devices and share screens, the attractive high-tech Center includes 24 meeting rooms (14 with natural light and ocean views); four ballrooms, the largest accommodating 850 for banquets; and two state-of-the-art theaters, seating for 300 and 1,350, respectively.
Contributing to sustained year-over-year meetings growth since 2013, the capital improvements have more than paid off.
“In 2017, Resorts Casino Hotel had a record 72 percent customer return rate for meetings and conventions, proving that exceptional service and attention to detail has its rewards,” said President and CEO Mark Giannantonio. “Based upon advance bookings for next year, we expect to exceed that record even further in 2018.”
Investing some $200 million in redevelopment since 2012, ever-evolving Borgata Hotel Casino & Spa unveiled its new $11 million, 18,000-square-foot Central Conference Center earlier this year. Adding to its existing 70,000-square-foot Event Center and 18,000 square feet of space at sibling The Water Club, the new venue creates 106,000 square feet of total space between the two luxurious towers.
“The launch of Central Conference Center complements our event space, allowing us to accommodate more weddings, special occasions, tradeshows, business expos and more,” stated Mark Vanderwielen, Borgata’s vice president of hotel & property operations, in a release. “As the market-leading resort destination in the region, we recognize the importance of our meetings and conventions customers and are delighted to offer them an exclusive product containing a level of service that is unmatched anywhere in the city.”
