Penn plans new features at Tropicana
July 29, 2016 8:22 AM
by Phil Hevener
Penn National Gaming’s Las Vegas Tropicana will continue to get additional non-gaming amenities over the next two to three years as it increases its ability to attract customers in one of the most hotly competitive neighborhoods along the Strip corridor.
Much of the competition is, of course provided by MGM Resorts, which has major properties on the other three corners at the Strip and Tropicana, including the new T-Mobile Arena. There has been a steady stream of major events at the Arena since its opening in April.
"We just don’t have enough non-gaming amenities to satisfy the expectations of our customers," a Penn executive said during a conference call with financial analysts that focused on second quarter performance and the look of things to come."
Penn expects to spend about $200 million on a variety of Tropicana improvements that will include everything from dining to entertainment. The new owners of one of the oldest remaining hotel and casino on the Strip expressed satisfaction with the improvements in slot and table game volumes, stressing in several different ways that more improvements are on the way.
Penn’s database continues to grow and now accounts for about two-thirds of its business.
Penn CEO Tim Wilmott said, "we continue to analyze additional non-gaming amenities and other enhancements on our 35 acres of Strip property, with the scope, budget and timing of any such improvements to be based upon our ongoing development of the customer base and our criteria for returns on invested capital."
He said that the spending on the Strip will not prevent Penn from making additional acquisitions wherever and whenever it finds them.
About the ongoing work at the Tropicana, Wilmott added, "The next step in our ongoing plan to drive incremental revenue includes enhancing the property’s food and beverage offerings and other amenities. In May, we announced that celebrity chef Robert Irvine, host of Food Network’s Restaurant Impossible, will open his first signature restaurant on the Las Vegas Strip at Tropicana Las Vegas in 2017".