Harrah’s investing $75 million in St. Louis project

Monday, Oct. 21, 2002 | 11:17 a.m.

SUN STAFF AND WIRE REPORTS

Harrah's Entertainment Inc. of Las Vegas, the No. 3 U.S. casino company, said today it's adding a $75 million hotel tower to its Harrah's casino in St. Louis to boost the property's revenue.

The 16-story tower at the company's St. Louis-Maryland Heights casino will include 309 rooms and suites. The project also includes a redesign of the hotel lobby, additional valet parking areas and the expansion of two restaurants, Las Vegas-based Harrah's said in a statement.

Harrah's hasn't shared in a rise in Missouri casino revenue. Profit at the company's two casinos in the state fell 2.4 percent in the third quarter, while Missouri casinos as a group had a 12 percent increase in gambling revenue, according to Salomon Smith Barney.

The company reported higher profit at its Harrah's Atlantic City after it opened a 452-room hotel tower at the New Jersey property this year. Construction of the St. Louis tower will begin next year and be completed in 2004, Harrah's said.

"We are encouraged by the recent annual report prepared by the Missouri Gaming Commission to the General Assembly of the State of Missouri," said Anthony Sanfilippo, president of Harrah's Entertainment's Central Division. "The report supports maintaining a competitive state gaming tax and a stable tax environment that encourages capital investment in Missouri. It encourages us to build on the already significant investments we've made at our St. Louis and North Kansas City properties."

"We are currently spending more than $10 million to upgrade our existing hotel guestrooms, and the response from our guests has been outstanding," Sanfilippo said. "This gives us confidence that our guests value our luxury rooms highly."