[toc]Tropicana Entertainment just purchased the Chelsea Hotel, located across the street from Tropicana Atlantic City.
Tropicana plans to open the rebooted Chelsea Tower at Tropicana Atlantic City next month. The Chelsea will serve as a boutique hotel property for customers less interested in the gaming part of Atlantic City.
The purchase of the Chelsea Hotel will substantially increase the company’s footprint in Atlantic City. The addition grows the number of available rooms from just over 2,000 to nearly 2,350.
The long-term plan is to link the Chelsea Tower with the Tropicana Atlantic City via a skyway bridge.
Tropicana President and CEO Tony Rodio spoke about the acquisition in a press release.
“We are pleased with this acquisition and the opportunity to offer our guests more hotel room options on The Boardwalk. The Chelsea Tower is a great addition to our four existing hotel towers at Tropicana Atlantic City. Guests will be able to enjoy a boutique hotel feel while having full access to all resort options at Tropicana Atlantic City.”
A look at the Chelsea Hotel
The Chelsea Tower at Tropicana Atlantic City is a 20-story tower with an attached low-rise hotel. The building boasts a total of 330 hotel rooms. The rooms will have a “retro” style according to the press release. Additionally, because of its location, many of the rooms will have ocean or bay views.
The Chelsea Tower will also have its own pool and cabana. Tropicana is also in the process of securing more capital in order to make further improvements to the property.
According to the press release:
“Guests can expect the same great service and amenities they already receive at Tropicana Atlantic City and will have access to all of Tropicana’s facilities including 24 dining options, including Olon and Okatshe from award-winning Chef Jose Garces, 25 shops and 18 nightlife experiences.”
Tropicana’s attempts to increase its AC footprint
As Rodio said the press release:
“Since emerging from bankruptcy in 2010 Tropicana has been a great success story. The capital and support of Icahn Enterprises, our controlling shareholder, has been instrumental in our success and I appreciate Carl Icahn’s (IEP’s Chairman and majority shareholder) continued support in the execution of our strategy.”
Part of that strategy seems to be increasing the company’s footprint.
When Carl Icahn bought the Trump Taj Mahal during the company’s bankruptcy in 2016, many people thought Icahn would once again work his magic and The Taj would be Tropicana 2.0.
Things didn’t quite work out that way though.
Icahn and local unions were unable to reach a labor agreement and a prolonged strike forced Icahn to close the property. He later sold it to Hard Rock International. That company is now in the process of a giving the aged building a $400 million facelift. Then it will open the Hard Rock Atlantic City next summer.
The Chelsea isn’t exactly the Taj Mahal, but with its location and 330 rooms, it certainly helps increase Tropicana’s footprint in the city. Perhaps more importantly, does so without relying on gaming revenue.
Photo by John Arehart / Shutterstock.com