Atlantic City Weekly

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By Jeff Schwachter

THE LIGHTNING BOLTS that adorn Resorts Atlantic City's new tower are finally set to receive the jolt of electricity they've been anxiously waiting for this Friday morning, July 2. The casino hotel will officially cut the ribbon at its new 27-story structure, one that has been standing next to Resorts' existing tower -- under construction -- for the past two years. The shock is expected to be felt not only by Resorts, but also throughout the entire city.

The tower, dubbed Rendezvous, is a $125 million project that boasts 357 rooms, 42 luxury suites, a retail space that will feature upscale shops, and 14,000 square feet of additional gaming space for Resorts. It will officially take its place in Atlantic City history with grand opening events scheduled throughout this holiday weekend.

New rooms have been booked solid since the tower's "soft" opening in mid-June, and Resorts officials expect occupancy to be in the high 90-percent range all summer long. Several hundred more rooms at the foot of a recently re-nourished beach mean more visitors dining, shopping and experiencing entertainment in town as a whole.

"Every hotel room helps the entire city by creating an opportunity for someone else to stay overnight and spend more money," says Mike Pollock, longtime gaming analyst and publisher of the Gaming Industry Observer. Pollock believes the new tower will be a "home run" for Resorts, accomplishing a lot for the company that inaugurated legalized gambling in the city 26 years ago. Although the grand opening of Rendezvous can't compare with the initial excitement felt throughout the region when Resorts first opened in 1978, Pollock says it's a chance for the company to shine again.

"First of all, it's a beautiful tower," says Pollock of the sand-colored building done up in art-deco fashion inside and out. "The art-deco work serves a whole bunch of functions: It ties in well with the existing architecture of the property, it's attractive and it will never go out of style. It also gives Resorts a sense of arrival ... it's visible from such a distance it will help remind people coming into town that Resorts is there."

Taking a hit in revenues since it razed its existing tower around Labor Day 2002, (eliminating 166 hotel rooms during the process) Resorts has definitely felt an impact during the construction phase. In the last year, the emergence of the Borgata has also been a factor. All that, according to Resorts CEO and President Audrey Oswell, is about to change.

"We are extremely excited about this new chapter in both Resorts' and Atlantic City's history," says Oswell. "The luxury and style of the new tower, along with the added services and amenities, will truly help redefine the Atlantic City experience for long-time patrons and newcomers alike."

Pollock agrees: "Resorts has put a lot of money into that property under previous and existing owners ... The tower's going to get people to come to that property who otherwise would not and, consequently, they're going to get a return on investment that they made 10 years ago."

Rendezvous, according to Pollock, should help Resorts' remain a viable competitor in Atlantic City, allowing their market share to grow and increase their profitability. The tower also signifies the belief of Resorts' parent company -- Los Angeles-based Colony Capital -- that all bets are on the city to have a successful run for years to come.

"At $125 million dollars, I think the tower is a clear demonstration that they look at Atlantic City as having a bright future," says Pollock. "I think the return on their investment will more than justify that confidence."

Resorts' officials couldn't be happier with the initial response to the new rooms which average over 500 square feet, now the largest standard-sized hotel rooms in Atlantic City.

"The feedback's been wonderful," says Trish Gilbert, vice president of marketing for Resorts. "Everyone's enjoying the size of the rooms ... people love the lobby. It brings a little South Beach to Atlantic City."

Featuring a varied décor, with rich finishes, golden hues and light woods, the rooms include high-speed Internet access (in both towers) and "oversized" bathrooms with imported marble and two-person showers.

"It's a very spacious environment," says Gilbert, "light and airy."

Pollock also views Rendezvous as a turning point for Resorts in terms of the customers it hopes to attract.

"It will help diversify [their] customer base a little bit," says Pollock. "It will allow them to attract additional markets, such as convention business. All of the rooms have high-speed Internet access, for example. You don't do that to attract a 60-year-old. I find that significant."

Resorts' target crowd is in the 40-plus range according to Gilbert. She says that the ages of guests vary slightly depending on what entertainment is booked at the property. It's unlikely however, that a band such as Hoobastank (a recent performer at Borgata) would fit in with this summer's roster of acts that includes Smokey Robinson, Bobby Vinton and Jerry Seinfeld.