Forty-three stories were planned, however ten years after it was first envisioned, the Mohegan Sun Hotel’s Earth Tower will open next month in Uncasville, with 14 stories.
Ten years ago, before even the first hints of the Great Recession, the casino, then one of the largest in the world, grossed about $1 billion annually. Today its revenues are two-thirds of that—and the most optimistic predictions are that more cuts are coming.
Nevertheless, the Mohegan tribe hopes that the $130 million, 400 room resort hotel, which will join an existing 34-story, 1,200 room hotel, will help maintain revenues against poaching by casinos that are rising in neighboring Massachusetts and possibly Rhode Island.
CEO Bobby Soper told the Boston Globe. “There will be some negative impact, but we hope to offset that with growth in amenities. We have dealt with expanded competition before.”
Soper says they know they won’t have trouble filling the rooms, and their strategy is to build more non-gambling amenities, such as dining, shopping and entertainment, so they are less dependent on the casino floor. The high tech rooms will enable guests to order room service, alert housekeeping and control room temperature using an app on their Smartphone.
Paul DeBole, a professor at Lasell College who is a specialist in gaming regulation, told the Globe: “Mohegan Sun began as a casino for gambling with some amenities. It’s becoming a luxury resort with some gambling as an amenity.”
DeBole believes that the Sun seeks to create dominance in the Southern New England and New York Market, while conceding Greater Boston to Wynn Resorts, and hoping that brand loyalty will preserve most of its customer base.
Downsizing the hotel turned out to be a smart move in the long run, especially when considered in the context of its biggest rival, Foxwoods. Operated by the Pequot Tribe, that casino built a large expansion a decade ago and ended up with a $2 billion debt. Its revenues have also suffered to about the same degree as the Sun.
