spective , there are a host of factors to consider : market and financial feasibility , how a hotel would fit in the tribe ’ s longterm business strategy , and regulatory considerations . There are a lot of costs associated with hotel operations , so a threshold question to ask is whether or not a hotel will result in enough increased guest visitations and spend to warrant the expense .
Recently , we announced plans for a non-gaming expansion at Pechanga . The project is designed to meet customer demand for more rooms , a true resortstyle pool experience , a luxury spa and more A-list concerts . For us , our decision was rooted in the fact that our existing hotel has been at capacity for several years . Like everyone else , we were affected by the Great Recession , but in recent years , our occupancy rates have rebounded strongly . Just a few months ago , in fact , our team celebrated 365 consecutive days of 100 percent occupancy .
STEELMAN : The adding of a hotel is absolutely a must . There is not one hotel expansion that has not increased the gaming win . The casino ’ s best customers stay in that hotel .
3
What does a hotel do for a casino , both in terms of visitations and revenue ?
BACON : A hotel speaks to the notion of a resort experience more than any other amenity ( golf notwithstanding ) and is often the primary component of a true integrated resort , which is a fancy term for mixed-use development . No other amenity contributes to longer length of stay than a hotel . F & B patronage is significantly stronger with an overnight guest . The fundamental key for success , however , is recognizing that you ’ re not in the hotel business but the gaming resort business .
EMERY : Properly sized , a hotel should add an incremental drop of 20 percent to 40 percent on the gaming floor . Our historical data from properties shows that an empty guest room on a gaming property loses $ 50 a room night . The goal of a hotel is to provide a stay-and-play option for that “ getaway ” guest . Guests will enjoy the amenities more , food and beverage sales will increase and the gaming floor will become more dynamic .
RANCK : With the right mix and critical mass of amenities , hotels within an integrated resort provide the best opportunities for brand loyalty by setting the level of service and providing a unique guest experience . Hotels can connect to guests with authentic local experiences and engage guests with technology to personalize the visit .
4
Meetings and conventions are a fast-growing part of most resorts . What are the secrets of adding a successful meetings and convention business ?
BACON : The meetings and convention business has become extremely competitive , but can be a great non-gaming revenue generator . The average meeting attendee will book an early week room night and use an expense account to spend generously on F & B . One of the biggest contributors to incremental revenue success is the proper promotion of the space to the right groups . It ’ s no secret that the typical meeting attendee is an average gamer , so it ’ s critical to market to the right meeting planners in order to land the right demographics .
KELLY : Do the analysis ! Meeting space is costly to develop and needs a great business plan to make it successful . Know your market and it will increase hotel visits and increase F & B business ; make it too big and you cannot get a return on investment . A great sales staff can fill your meeting space many months in advance ; this will mean your hotel rooms on Monday through Thursday will be occupied and create increased room rev-
Galaxy Macau
36 CASINO DESIGN 2015