New Tower for Resorts?

Resorts Weighs New Tower Options While Announcing 27% Revenue Jump

Resorts Hotel Casino is continuing to study its options with regard to building a new hotel tower on the site of an existing 166-room tower constructed in 1961. Nicholas L. Ribis, vice-chairman of Resorts, said today that the September 11 attacks adversely impacted "the availability of high yield financing necessary to construct the tower," but Resorts is continuing to seek funding.

The comments came as part of an announcement in which Resorts noted its 2001 earnings before interest, taxes and depreciation ("EBITDA") was $31.8 million, an increase of $6.8 million or 27% over 2000 results. Resorts fourth quarter 2001 EBITDA was $4.5 million, an increase of approximately $900,000 (25%) over the comparable 2000 period. Los Angeles-based Colony Capital bought Resorts from Bahamas-based Sun International Hotels for $140 million in April, 2001.

Resorts attributed the annual and fourth quarter EBITDA growth to its targeted and cost effective marketing programs, improved slot product, operating cost controls and improved customer service. Resorts defines EBITDA as earnings before interest, taxes, depreciation, amortization, casino reinvestment valuation expenses, and expenses in connection with redeemable stock interest and restricted equity stock grants.

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Author: Business News New Jersey