A new $206 million hotel tower at M Resort in the Las Vegas suburb of Henderson, Nevada, is among $850 million in development projects announced Monday by Penn Entertainment.
Penn Entertainment is wagering on continued high demand for gambling and related commercial services at a volatile time for the larger economy. The Wyomissing, Pennsylvania-based company in August reported its second quarter revenue rose 5.2% from a year earlier to $1.6 billion, though net income declined 87% to $26 million.
“Our casino properties remain at the core of our omni-channel approach to entertainment,” CEO Jay Snowden said in a Monday statement, also noting the company’s retail operations and customer member databases tied to its hotel-casino rewards programs.
Plans for the Nevada property include the addition of a second hotel tower at its 390-room M Resort spa and casino property at 12300 Las Vegas Blvd. South, which opened in 2009. Penn plans to also expand meeting spaces and update existing amenities but did not provide a timetable.
“At the M Resort, the addition of a second tower will benefit from the strong demand in the Henderson locals market while providing additional capacity for the group business that is drawn to our market-leading resort and amenities,” Snowden said, referring to the property’s high proportion of customers who are local residents.
Penn is also planning to develop a $360 million, land-based casino and hotel adjacent to the Chicago Premium Outlets mall in Aurora, Illinois, which would replace the company’s Hollywood Casino riverboat property in that city. The plan calls for 200 hotel rooms, several bars and restaurants and approximately 10,000 square feet of meeting spaces, with construction scheduled to begin in late 2023 subject to city and regulatory approvals.
Plans include funding the Aurora project in part through $50 million in bond financing from the city, subject to approval by the Aurora City Council, the statement said.
In Joliet, Illinois, Penn is planning a $185 million casino as part of developer Cullinan Properties’ mixed-use Rock Run Crossings, currently in planning near Interstates 80 and 55. The Joliet project, which would also be a replacement of an existing riverboat property, includes slots, live table games, bars and restaurants and 10,000 square feet of meeting spaces, with a planned construction start in late 2023.
In Columbus, Ohio, Penn is planning a $100 million, 180-room hotel at its existing Hollywood Columbus casino, with construction scheduled to begin in late 2023.
Penn Entertainment has arranged up to $225 million in financing for the projects through Gaming and Leisure Properties Inc., an affiliated real estate investment trust that owns 55 casino properties nationwide.