Monarch hopes Atlantis plans in Reno have the same effect as Colorado expansion

Monarch hopes Atlantis plans in Reno have the same effect as Colorado expansion

Article brief provided by The Nevada Independent
  • Howard Stutz, The Nevada Independent
October 26, 2022 6:36 PM
  • Howard Stutz, The Nevada Independent

If it worked in Black Hawk, Colorado, why not Reno?

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Earlier this year, Northern Nevada-based Monarch Casinos completed a $442 million expansion to its Monarch Casino Resort Spa in Black Hawk and the benefits showed up on the company’s third-quarter earnings.

Revenues for the two-casino company grew almost 20 percent in the three-month period to $134 million, which led to a 31 percent increase in cash flow. Monarch doesn’t break out results between the Black Hawk casino and the company’s Atlantis in Reno.

But analysts credited the Colorado property in the mountain community 45 minutes from Denver, which saw its casino double in size and open a 516-room hotel tower.

“Clearly, the ramp-up at Black Hawk has been more robust and rapid than we had originally anticipated,” Macquarie Securities gaming analyst Chad Beynon wrote in a research note. “There is more room to grow further with the new Black Hawk amenities attracting a new caliber of player not seen in a long time.”

While not committing to making the same financial investment into the Atlantis, Monarch CEO John Farahi said the company plans to renovate the hotel rooms at a second Atlantis tower, following the upgrades of an older tower completed this spring.

The company did not reveal costs for the hotel renovations, but Farahi said the guest response to upgrades, “has been very positive.” He also said Black Hawk has “a long runway ahead to fully unlock its potential.”

Truist Securities gaming analyst Barry Jonas suggested Monarch’s share of the Reno market could expand through the hotel renovations and an ongoing upgrade of the property’s retail space.

“Management has already seen some increased return on investment following its projects thus far and remains confident that continued investment will further enhance Atlantis’s positioning in the market,” Jonas told investors in a research note.

A day after the quarterly earnings announcement, Monarch’s stock jumped more than 14 percent on the Nasdaq National Market.

Stifel Financial gaming analyst Jeffrey Stantial told investors Monarch was “comparatively well positioned given economic tailwinds” in both the Denver area and Reno.