The Water Club hotel, part of the Borgata casino complex in Atlantic City, New Jersey, is undergoing a $55 million redesign and will be rebranded as MGM Tower, joining a number of hospitality properties in the gaming mecca undergoing facelifts.

The Borgata Hotel Casino & Spa on Tuesday unveiled its plans for the Water Club as the complex approaches its 20th anniversary. In addition to being renamed, the Water Club's more than 700 rooms will be revamped and a collection of luxury "vista suites" at the tower's corners with wraparound views of the Atlantic City skyline will be added.

The move comes as the national hotel occupancy rate sits at about 63%, back near its prepandemic level, according to STR, the hospitality data division of CoStar Group. But high interest rates and fears of a recession have slowed the pace of commercial real estate deals, making investments such as the Borgata's more notable.

The Borgata site, located off the Boardwalk in the Marina District of Atlantic City, includes its own 43-story hotel with about 2,000 guest rooms, according to CoStar data. Its adjacent Water Club hotel has 43 stories and 757 guest rooms.

The casino industry in Atlantic City was on a comeback when it was hit hard by temporary closings in 2020 because of the pandemic, but it has bounced back. Since then, a number of Atlantic City hospitality operators have or are undertaking modernizations of their hotels, including The Showboat Resort, with $50 million in improvements as well as adding a $100 million indoor water park planned to open this summer; Caesars Entertainment’s $400 million revamp of its three Atlantic City properties; and millions of dollars of improvements at Ocean Casino Resort.

"Introducing the MGM Tower connects Borgata with the unparalleled entertainment and resort experiences MGM Resorts is recognized for worldwide," Corey Sanders, chief operating officer of Las Vegas-based MGM Resorts International, said in a statement. "And we believe this significant reinvestment will drive visitation to Atlantic City well into the future."

Strengthening U.S. demand drove MGM Resorts' earnings to new highs during the fourth quarter.

The Borgata regularly tops the list in terms of in-person gambling revenue for Atlantic City's nine casinos. In January, it posted $58.4 million, up about 21% from the prior year, according to the New Jersey Division of Gaming Enforcement. The Hard Rock Hotel & Casino came in second, with $35.9 million, up 3%.

The newly remodeled rooms in MGM Tower will be available beginning in April, with the project slated for completion by Memorial Day weekend.

The remodeling will incorporate nautical design elements inspired by the marina, with a "palette of neutral and blue tones accented with deep wood finishes embodying a sophisticated coastal fee," according to the statement.

East-facing rooms will have floor-to-ceiling windows to showcase the morning sun over the Atlantic, while west-facing rooms will feature deep-blue curtains opening to sight lines of the grassy marshland in the distance, the statement said.

MGM Tower guests will still be near the entertainment, nightlife and dining that the Borgata complex offers, as well as a dedicated valet and check-in area, seasonal pools and luxury shopping. The site includes a 2,400-seat event center and a 900-seat Music Box theater.

As part of the changes, the Water Club, or MGM Tower, will also be introducing a 9,000 square-foot event space on its 32nd floor in the location of the former Immersion Spa.

"As we approach the resort's 20th anniversary, we are more committed than ever to remaining a leader in hospitality and entertainment by continuing to evolve the Borgata experience," said Travis Lunn, the Borgata resort's president and chief operating officer, in the statement.

In addition to its guest rooms, the tower features 27,000 square feet of meeting and event space; two indoor and two outdoor heated pools; and five boutiques.