Golden Entertainment expects most upgrades to be completed by the end of the year at its Stratosphere Casino, Hotel and Tower after its first launch in June 2018.
In addition to ongoing casino refurbishments, 130 hotel rooms were refurbished during the third quarter of the year, with the company expected to add another 126 by the end of 2019, taking its total to 573.
The company opened a new tap room, lounge and sportsbook earlier this year and completed upgrades to the SkyPod on the tower’s 108th floor, which includes a reshaped gift shop and food and beverage outlets as well as enhancements to the SkyJump experience.
Since the end of the third quarter, the Las Vegas headquarters company has spent a total of approximately $70 million in The Strat renovations since it began, including $16.6 million in Q3.
The company expects about $20 m of additional capital spending for the property in 2019, which will complete most of the proposed renovations of Golden at The Strat. No major investment in capital is expected for 2020.
Blake Sartini, chairman and chief executive officer of Golden Entertainment, explained: “We continue to make significant progress on our renovations at The Strat and anticipate completing most of our renovations by year end. We are currently working to complete the casino floor renovations by the end of December, which will dramatically enhance the gaming experience for our guests.
“In addition to our casino floor renovations, by the end of the year we will have remodelled almost 600 hotel rooms, created new food and beverage outlets, refreshed our Top of the World Restaurant and Skypod, updated the property’s exterior lighting and landscaping, and added new entertainment venues and other amenities. We believe these renovations will position The Strat for success in 2020 and for many years to come.”
The update comes as Golden reports its new third-quarter financial results, during which it praised expected synergies from its Laughlin acquisitions of Edgewater and Colorado Belle Casino Resorts.
Securing record third-quarter net sales and adjusted EBITDA, the latter came to $243.3 million, up 15.7% from $210.3 million, with the latter rising 12.9% to $43.1 million (2018: $38.1 million).
Casino revenue grew 20.4 percent over the period to $155.1 million (2018: $128.8 million), powered by the above-mentioned sales, with the company also announcing that True Rewards, the latest one-card loyalty programme, is available in over 130 of Golden’s casino resort and distributed gaming locations.
Sartini added: “We are pleased to see the continued organic expansion of our leading distributed gaming businesses in Nevada and Montana where we have a long history of operations.
“We intend to continue to invest in our current distributed gaming markets and to pursue potential opportunities in new jurisdictions where we expect to leverage our scale and expertise to establish a meaningful presence.
“Now that our True Rewards loyalty program has been successfully implemented in all of our casino properties, we will further roll-out this integrated players club to all of our 66 tavern locations and certain chain store locations in Nevada.
“We expect that our ability to incentivise customers across more than 130 Nevada casinos and distributed gaming locations will be a significant point of differentiation that drives customer loyalty and incremental revenue.”