River City Casino to expand, add nearly 100 employees
St. Louis Post-Dispatch
September 13, 2011
By Tim Bryant
The economy may be down, but at least one local casino sees opportunity for expansion.
Pinnacle Entertainment announced plans Monday to spend $82 million for a hotel, parking garage and events center for its River City Casino. It will create about 350 construction jobs and nearly 100 permanent jobs, Pinnacle officials added.
Construction is scheduled to begin early next year with the intent of completing the projects in the second half of 2013. Pinnacle is financing the work itself.
Anthony Sanfilippo, chief executive of Las Vegas-based Pinnacle, made the announcement at a news conference Monday morning in the casino's parking lot, where the 200-room hotel and events center will rise. The project represents phase two of the casino, which Pinnacle promised to deliver when opening River City in March 2010.
"St. Louis is very important to us," Sanfilippo said.
Company officials hope the River City hotel will draw gamblers from outside Missouri the way Lumière Place, Pinnacle's gaming center downtown, attracts out-of-state customers who have a choice of two hotels at the complex next to Laclede's Landing.
Sanfilippo said Pinnacle will own and operate the River City hotel, much as the company operates Hotel Lumière -- formerly Embassy Suites -- at Lumière Place.
St. Louis County Executive Charlie Dooley attended the news conference and emphasized the job creation aspect of Pinnacle's River City expansion.
"We have seen good jobs, new infrastructure and a renewed vitality in this area," Dooley said. "By delivering on River City's commitment to expand, Pinnacle is demonstrating they are good partners to St. Louis County and good neighbors in Lemay."
Sanfilippo said the company already employs more than 2,300 people at its two casino complexes in the St. Louis market.
The hotel, the 10,000-square-foot events center and 1,700-car garage will be built at the south end of the casino complex. Sanfilippo said the hotel will connect directly to the existing building and the events center, which will be able to host meetings and concerts.
River City Casino turned in a strong financial performance last month. The Missouri Gaming Commission released figures Monday that showed River City's revenue of $16.5 million in August was up 11.5 percent from August 2010. It was the only casino in the St. Louis area to post a year-to-year gain.
Adding a hotel to River City could make sense, said Joseph Weinert, a senior vice president and gaming analyst at Spectrum Gaming Group, of Linwood, N.J.
"It strikes me as being a very reasonable and measured approach," Weinert said. "Overnight players are certainly worth more than day trip players."
Depending on how Pinnacle chooses to market the hotel, a percentage of rooms could be set aside as complimentary lodging for high rollers at the gaming tables, Weinert said.
"They expect a comped room to reward their play," he said.
Neil Walkoff, Pinnacle's senior vice president responsible for River City and Lumière Place, said the River City expansion "will further elevate the level of leading guest amenities offered at River City."
