Phoenix-based Aztar Corp. (NYSE: AZR) is investing $175 million to expand its Tropicana Casino and Resort in Atlantic City. The expansion would add 500 rooms, conference space, a 200,000-sf dining and entertainment complex and more parking. The dining and entertainment complex will be patterned after the Forum Shops at Caesar's Palace and the Venetian's Canal Shops in Las Vegas. Construction is scheduled to begin in the fourth quarter.

Aztar is partnering with Kravco Co., a leading shopping center developer, on the expansion. Kravco operates one of the largest malls on the East Coast in King of Prussia, PA.

Aztar is planning a mix of 30% retail shops and 70% entertainment and dining facilities in the new addition. The company has lined up such restaurants as Morton's, Ruth's Chris, Cheesecake Factory and P.F. Chang's China Bistro.

Industry analysts say that last year's 92% occupancy rate in Atlantic City is a sign that the market can handle additional rooms and larger attractions.

Aztar's expansion plan is one of several under way or proposed for the city's gambling mecca. The $1-billion Borgata Resort, a 40-story, 2,000-room hotel, is set to open at the end of 2003. Harrah's and the Showboat casinos are both expanding. In total, Atlantic City is expecting to increase it's room number to 20,000, a 25% increase from the current inventory.

Aztar, which grew out of the former Phoenix-based Ramada Inc., owns three land-based casinos and two riverboats. It has operations in Las Vegas, Laughlin, NV., Atlantic City, NJ, Evansville, IN and Caruthersville, MS.

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Aztar Placing $175-Mil Bet on Atlantic City's Gaming Market

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