ATLANTIC CITY — Resorts Casino Hotel took out a $20 million mortgage on its property late last week to finance a renovation of its Ocean Tower hotel rooms.
“The reality of it is that the last couple of years have been extraordinarily good for us,” Resorts CEO Mark Giannantonio said Friday.
In 2014, Resorts reported $2.5 million in gross operating profit — its first annual profit since 2008. Last year, the figure was up more than fivefold, to $15.6 million.
About $11 million of the mortgage money will be spent to renovate 144 rooms by Memorial Day, Giannantonio said.
Renovations will include new bathrooms, furniture and windows. Resorts wants to have all 400 rooms of its Ocean Tower renovated by the end of 2017.
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The mortgagee, Cleveland-based KeyBank, agreed to lend up to $20 million to Resorts, which had been carrying little external debt, instead relying on owner Morris Bailey, the real estate magnate and Atlantic City native, for capital improvements.
The mortgage, Giannantonio said, “shows confidence.”
KeyBank ran the numbers. “They saw that the property is worthy of that loan,” he said.