If you’re wondering why the Golden Nugget has decided to expand in today’s market conditions, you’re not alone. Raise your hand if you think that Downtown gaming revenues are down sharply for the year, and down even more significantly in June, the most recent month for which numbers have been released.
If you could look around, you’d see a lot of hands raised, but the reality is that Downtown’s gaming win was actually up an impressive 10% in June. Year-over-year revenue is virtually flat, which is a phenomenal result given 2007’s record numbers and the supposed weakness this year.
The team at the Nugget knows that if Downtown can stay flat in a down market, prospects will look very good when things begin to turn around.
Work is underway for a third hotel tower at the Golden Nugget in Downtown Las Vegas. The $121-million project will add a 25-story tower with street-level retail and gaming below a pool deck, three levels of parking and 524 guest rooms. Completion is slated for December 2009.
Financing is already in place through a $500m credit facility the Nugget secured last year.