Borgata looks to bolster Boardwalk Dominance with $14 million renovation

Borgata, the lone Garden State integrated resort operated by MGM Resorts, won $88 million in July across its online, sports wagering, and land-based gaming operations. That was good for the top spot among the nine Atlantic City casinos. The New Jersey Division of Gaming Enforcement’s (DGE) has not yet published data for August.

The newly announced $14 million refurbishments include a bar in the hotel lobby near the VIP check-in area, and sprucing up more than 300 Fiore suites. The lobby bar project is expected to be completed this month, according to a corporate statement.

Las Vegas-based MGM Resorts operates Borgata while the real estate assets are owned by MGM Growth Properties.

Refurbishment Redux
News of Borgata’s $14 million renovation plans comes after MGM put $12 million into opening the Moneyline Bar & Book, a watering hole and sportsbook, and the Level One Cocktail Bar & Lounge. Several Boardwalk players have been renovating or opening new sportsbooks, as sports betting takes off in New Jersey, with market observers forecasting that the Garden State will soon surpass Nevada on an annual basis in terms of total sports handle.

MGM’s latest financial commitment to Borgata comes as some of the company’s other regional assets, namely MGM Springfield, struggle. Earlier this year, MGM executives noted that while some properties, such as the one in Massachusetts, may be behind expectations, other components in the firm’s regional portfolio are ahead of forecasts.

Renovations Matter
On a year-to-date basis as of the end of July, Borgata has posted GGR of $455 million, more than double the amount of its nearest rival. The 312 suite renovations are expected to be completed by early 2020. Executives did not break out how much of the $14 million will go to sprucing up the rooms and how much is directed at the lobby bar.

In a competitive market such as Atlantic City, which has some properties that are barely more than a year old, capital investments are meaningful when it comes to luring guests and gamblers. Operators that do not keep up with enhancements risk losing business.

For example, Caesars’ Bally’s Atlantic City has fallen behind Boardwalk opponents because, by the company’s own admission, it has not adequately maintained the venue.