Upgrades to be carried out in three phases over the next three years at Golden Entertainment Inc.’s newly acquired Stratosphere property are reportedly expected to generate a return on investment (ROI) of between 15% and 20%, according to company Chairman and CEO Blake Sartini.
The Las Vegas Review-Journal reports that in a Thursday quarterly earnings call, Golden Entertainment company executives said that including $32 million this year, over the next three years it will invest $140 million in the iconic 1,149 foot Stratosphere Casino, Hotel & Tower, which was part of an $850 million deal announced in June. The deal to purchase casino holding firm American Casino and Entertainment Properties also netted Golden the Aquarius Casino Resort in Laughlin, Nevada and a pair of Arizona Charlie’s properties.
Announced by Sartini in a call with investors, Golden Entertainment’s capital improvements strategy will reportedly take place in three phases at the Stratosphere as to minimize disruption during pivotal calendar dates.
Beginning in the second quarter, phase one would reportedly include remodeling 317 of the Stratosphere’s 2,427 hotel rooms, new exterior signage, the addition of the new gastro-brew outlet to the casino sportsbook, remodeling the thrill-ride levels and observation deck with a new bar geared toward a younger demographic, a new casino “view lounge” overlooking the floor, and a new VIP hotel registration area and rewards center all to be completed by the end of this year.
Including remodeling 452 hotel rooms, phase two would begin the first quarter of the new year and add a new steakhouse and remodel the casino floor, as well as add general aesthetic improvements throughout the resort and a new Starbucks.
To begin in 2020 and conclude the summer 2021, the final phase will reportedly include the remodeling of 364 rooms and the tower’s high-end restaurant, Top of the World, the addition of a new noodle bar and food-hall concept, revamping the showroom, a reconfiguration of mezzanine level space for the planned convention center and adding new casino space to be appropriately named “Adrenaline,” geared toward younger casino visitors.
Not included in the improvements under consideration are the 16 acres that surround the property which could be utilized for future expansion, Sartini noted.
According to the Las Vegas Review-Journal, the company is also in the midst of launching a single loyalty card to encompass all Golden properties. The card would reportedly debut by the year’s end. Sartini reportedly said that Golden has already detected an increase in the number of crossover customers originating from its network of taverns dining and pubs and playing at its casino properties.