Atlantic City’s Tropicana Casino acquires hotel for expansion
Tropicana Atlantic City has acquired the Chelsea hotel, which is located directly opposite the casino, on Morris Avenue, and plans to incorporate the property into its existing operations.
The proposal is to have a skyway bridge linking Tropicana to the 20-story Chelsea, with the new space to offer food and beverage offerings, a spa and several meeting rooms.
Carl Icahn, who is majority owner of Tropicana Entertainment, acquired the 330-room hotel in May by purchasing its mortgage for an undisclosed sum. The companies have not disclosed how much Tropicana Entertainment paid for the Chelsea.
Work is set to begin right away, with the hotel set for an August opening, under the name “Chelsea Tower at Tropicana”, which will bring the casino’s room total to about 2,700.
The 300-room Chelsea Hotel, closed in December last year, after developer Curtis Bashaw opened it as a non-gambling boutique hotel designed to capatalise on the city’s desire to offer more than casinos to visitors.
Bashaw had considered with the idea of offering gambling at the hotel, but it never came to pass. When he purchased the property in 2008, the existing two motels underwent a $110 million makeover, which changed the site into a retro hotel with a ’50s and ’60s theme. Among its attractions is a salt-water pool and spa.
The Chelsea consists of a 20-story oceanfront hotel tower with many rooms boasting sweeping ocean and bay views. The Company is in the process of developing plans for additional capital improvements to the facility.
Guests will be able to enjoy a boutique hotel feel while having full access to all resort options at Tropicana Atlantic City. It is a huge turnaround for Tropicana, and a great success story, as the company went bankrupt in 2010.
CEO of Tropicana Entertainment – Tony Rodio – told the Associated Press on Thursday “we are pleased with this acquisition and the opportunity to offer our guests more hotel room options on The Boardwalk”, adding “the capital and support of Icahn Enterprises, our controlling shareholder, has been instrumental in our success, and I appreciate Carl Icahn’s continued support in the execution of our strategy.”