Vol. 4, No. 2, February 2007
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Fred Buro, President
The sale of the Aztar Corp. to Columbia Entertainment was completed last month, clearing the way for the company to begin operating the Tropicana and its non-gaming entertainment complex, the Quarter. Taking the helm in Atlantic City is Fred Buro, who previously had served as chief marketing officer for Columbia Sussex, the parent company of Columbia Entertainment. Buro has a long history with Atlantic City gaming, spending many years in the Trump organization, rising to become general manager of Trump Plaza in 1998. At Columbia, Buro helped a non-gaming company understand the gaming industry as it bought various casinos in Mississippi, Louisiana and Nevada. As president of the Tropicana, Buro will focus on improving operations and renovating neglected parts of the property. Buro spoke with Casino Connection Editor Roger Gros in January, just after taking over at the Tropicana.
Casino Connection: Columbia Entertainment is a somewhat unknown quantity in the Atlantic City gaming industry. Can you give our readers a short profile of the company?
Buro: Columbia Entertainment is owned by William J. Yung III, who along with his family also owns Columbia Sussex Corporation, one of the largest privately held owners, developers and operators of hotel properties in the world. Columbia Sussex is the largest licensee of full-service Marriott Hotels in the U.S. The company and its affiliates own more than 85 hotels, casinos and resorts domestically and internationally operating under top brand names including Marriott, Hilton, Westin, Sheraton, Renaissance and Doubletree. The companies employ nearly 28,000 people.
Prior to the acquisition of the four Aztar (Tropicana) properties, Columbia operated nine casino hotels, including two in Louisiana (Amelia Belle Casino and Belle of Baton Rouge), two in Mississippi (Vicksburg Casino and Lighthouse Point Casino), four in Nevada (MontBleu Casino, River Palms Casino, Lake Tahoe Horizon Casino and Westin Las Vegas Casuarina Casino), and one in Saint Maarten (Westin Saint Maarten).
The Tropicana has been very successful with the addition of the Quarter and a new hotel tower. Is Columbia Entertainment going to change anything about the way this addition operates?
The Quarter has become very well-known and successful since its opening in November 2004. We are extremely pleased with the variety of clubs, restaurants and retailers the Quarter offers. We will continue to evaluate and improve marketing for the Tropicana and the Quarter as we move forward.
How are the retail and restaurants performing in the Quarter? There have been a few turnovers of storefronts in the past six months. Is this what can be expected, or is it more than you’d like to see?
In general the Quarter and its tenants have been extremely successful. With the additions of the Discovery Channel Store and Magic Masters in December, every store is full and on average has been very successful. Carmine’s, the Palm, Planet Rose, Cuba Libre, Red Square, P.F. Chang’s and 32 Degrees have all been a perfect match for Tropicana and continue to enjoy overwhelming popularity. The key to the Quarter’s continued success is perfectly matching the bars, restaurants and retailers with Atlantic City’s emerging market, which is comprised of many more young adults.
The Tropicana casino floor is somewhat dated in places. Are there any plans to renovate these areas?
Yes. We will make a $55 million investment and renovations to the casino will begin immediately. We will add new slots, a brand new poker room and an exciting new casino bar in the center of the casino. We’ll reconfigure the table games, modernize the ceiling and lights, and change the overall ambiance of the casino to match the look and feel of the Quarter.
How about the other hotel towers? Are they up to Columbia standards or will there be hotel room renovations considered?
After touring the property, we have found that some of the rooms did need to be updated. Those renovations will begin with the South Tower this month.
There are many loyal employees at the Tropicana who have been there for many years, some from Day One. What do you have planned to show your appreciation for their continued service and loyalty to the property?
The foundation of every successful company is its employees. We certainly recognize the value and hard work that each employee at the Tropicana has provided throughout the years and continues to provide every day. I look forward to getting to know and working with all of the Tropicana employees. Currently, we are in the process of evaluating the appreciation programs that have been in place to find ways to improve upon them, but we will also develop new programs where there were none before.
Your experience in Atlantic City will be invaluable in your new position. What is different in the Atlantic City of today from the one in which you worked several years ago?
I am very happy to be back in Atlantic City and certainly feel privileged to be part of the Tropicana team. I look forward to working with our employees, local businesses and vendors, municipalities and governing bodies to continue the extraordinary progress that has been made thus far in town and at the Tropicana.
Atlantic City of today is clearly building upon the experience gained from the successes and failures of its past. By that I mean that operators have learned that significant capital reinvestment in their properties is required to stay competitive, protect market share and simply grow the business. The Borgata and the Quarter at the Tropicana have demonstrated how easy it is to cannibalize customers from the more dated properties and from properties with a limited non-gaming amenity set. The new folks who are showing up in Atlantic City are younger and more affluent people who would come to Atlantic City more frequently if there were more to do on an extended stay. So we intend to leverage upon the success of the Quarter along the lines of that philosophy.
Do you see the non-gaming amenities at the Trop as an edge most of the other casinos in Atlantic City do not have?
The non-gaming attractions that are offered at the Tropicana are absolutely an edge. You can watch a movie at the IMAX Theatre, learn magic and purchase the trick from the magic shop, have a few laughs at the comedy club, listen to Sinatra at Tango’s lounge, eat in a variety of restaurant concepts, shop, party or sing at a karaoke bar. People coming into the Tropicana simply have more to do, so we are able to position the Tropicana differently when compared to a conventional slot house, and create more value for the tour-and-travel planners.
Trop has some great meeting space. Will you ramp up sales of this space now that you’ve taken over?
Absolutely. Our meetings and group sales staff have done a fantastic job of attracting clients to this space. Going forward we would like to see it even more productive. The Tropicana has more than 122,000 square feet of meeting space. Seldom does a day go by when that space is not being utilized. I am quite confident that it will continue to be successful and a key component of our marketing strategies.
There were plans for an additional Trop expansion on Belmont Avenue. Is that still on the drawing board or will you re-evaluate those plans as you go forward?
Right now we are examining a number of options for additional hotel towers. One of those options is Belmont Avenue, but there are others. We will aggressively move forward to analyze which options best serve the Tropicana. And then, move quickly.
There are quite a few important issues facing the Atlantic City casino industry at the local and state level. Will the Trop continue to be an active part of the CANJ?
Yes. I have recently become a member of the CANJ and I am excited to be working with such an experienced group of people. They have already accomplished quite a bit, but there is so much to do. Currently we are working on several issues that could have a profound impact on Atlantic City such as a smoking ban and possible slot expansion throughout the state.
