Population growing, revenues rise
Casino operators in the greater Reno/Tahoe area in Nevada are planning more than $100 million in renovations this year, according to the Reno Gazette-Journal.
The JA Nugget will invest $50 million in upgrades, Boomtown will spend $20 million, and the Grand Sierra will spend $30 million. The Hyatt Regency Lake Tahoe in Incline Village will invest $20 million, and the Horizon at South Lake Tahoe will spend twice that amount.
Carlton Geer, president and chief executive officer of JA Nugget, says the region has been reinvigorated by a rise in year-over-year gaming revenue at large casino properties in northern Nevada.
“If you look at the Nevada Gaming Control Board revenue reports, large casinos in northern Nevada gained about 6 percent year-over-year through December in gaming win,” Geer told the Gazette-Journal.
That new energy is accompanied by growth in the residential and industrial construction markets, a rise in revenues from room rates at properties in Washoe County, and signs of economic recovery in California.
“We have a real economic recovery in northern Nevada; it is tangible, we can see it,” Geer said. “And we have the recovery of the northern California economy. We want to deploy capital to reposition ourselves to become more competitive.”
“We are working to put the pieces of Boomtown back,” said Dean DiLullo, CEO of M1 Gaming. DiLullo added that the population base in the area is increasing, including lots of former Californians who are relocating to the Silver State.
Grand Sierra General Manager Dan Uonites said California visitors are one reason the property spent $15 million on Lex, its new 25,000-square-foot nightclub. Lex is meant to “attract individuals coming over from the Bay,” Uonites said. “If you look at Vegas over the course of the years, it started to buy into the entertainment concept. It was about nightclubs, bottle service, and all these different amenities. It worked. They tapped into this new customer base. And that is what our goal is.”
Families are another key market segment, according to a report from the Reno-Sparks Convention and Visitors Authority. Officials said tourists who bring their kids spend more and stay nearly twice as long?an average of 6.2 days compared to 3.2 days for adults-only groups.
“Families are identified in the data as an exciting opportunity for growth,” the report said. “More adults brought their children with them to the area compared with 2011. They stayed longer, spent more and left wanting to return.”
