Investments in Tropicana Las Vegas seen continuing

Penn National Gaming will continue to leverage its investment in its Tropicana Las Vegas property and add to its holdings in Mississippi to expand and diversify revenue, company officials said Thursday.

The Wyomissing, Pennsylvania-based company that operates the Tropicana and the M Resort in Southern Nevada, reported a 2.6 percent increase in revenue to $776.2 million in the first quarter of 2017, which ended March 31.

The company is the midst of a $40 million investment at the Tropicana and plans to hold off further investment there until it evaluates the results of building celebrity chef Robert Irvine’s first signature Las Vegas restaurant.

In the meantime, Penn will close next week on the $44 million acquisition of Bally’s Casino Tunica and Resorts Casino Tunica in Mississippi. The company expects to develop synergies by sharing some operational functions with the company’s existing Hollywood Casino Tunica operations.

“Since acquiring Tropicana Las Vegas in 2015, we have leveraged the property’s high-quality room base and our player database while enhancing key amenities and the overall guest experience,” Penn CEO Tim Wilmott said in a statement announcing the company’s earnings.

“Based on extensive customer research, our capital spend to date has been focused on improving the casino floor experience and expanding and upgrading food and beverage offerings,” he said.

The Robert Irvine Public House, a 260-seat high-end tavern, will open in the summer.

“We are also upgrading several of the property’s existing restaurants and lounges and adding a quick-serve food concept which will bring our expected incremental investment in the facility since acquisition to approximately $40 million,” Wilmott said. “As we have previously stated, we have postponed further investment in the Tropicana Las Vegas master plan as we evaluate the results of our initial food and beverage upgrades and other facility and operational changes.”

Wilmott said the property should get a boost in June when a pedestrian bridge between the MGM Grand and the Tropicana is reopened.

On Friday, Penn shares lost 33 cents, or 1.75 percent, to close at $18.48.

The company had mixed results in its other regional properties. The company’s Hollywood Casino at Charles Town Races in West Virginia didn’t fare as poorly as expected with the opening of nearby MGM Grand National Harbor in Maryland in December.

But the company’s $390 million Hollywood Casino Jamul-San Diego has underperformed since its October opening, although company officials said results were stronger there in March and April after increased marketing efforts.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.