a Casino Resort Under Construction in Lake Charles, Louisiana to
$365 million; Will Include 746 Guestrooms, Tom Fazio
Designed Golf Course
|LAS VEGAS, July 19, 2004 - Pinnacle Entertainment, Inc. (NYSE:
PNK) announced today that its Board of Directors has approved an increase
in the scope and budget of L'Auberge du Lac, the Company's casino resort
currently under construction in Lake Charles, Louisiana. Among other
items, the Company has increased the number of guestrooms to 746 from approximately
700. Overall, the budget was increased to $365 million from $325
million to reflect these scope changes.
"The addition of more hotel rooms, suites and other amenities will further strengthen our position in the Lake Charles gaming market," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "This increase highlights our confidence in the success of L'Auberge du Lac."
To date, the Company has incurred approximately $100 million of construction and other capitalized costs. Most of the remaining costs are included in the bonded, fixed-price construction agreements that Pinnacle has with its contractors. The new budget also includes approximately $17 million of contingency for unforeseen items, including approximately $7 million that is controlled by the Company's general contractor. Funding for the remaining construction costs will be through the Company's cash and cash equivalents (which were $334.5 million as of March 31, 2004), available credit facilities (approximately $143 million as of March 31, 2004), and ongoing cash flows from operations.
Despite year-to-date rainfall tracking significantly ahead of normal
levels for the Lake Charles area, L'Auberge remains on-schedule for an
opening in Spring 2005. Construction recently began on the 14th floor
of the hotel, with "topping off" of the 26-story tower expected in October.
Inspired by the architecture of the Texas Hill country, L’auberge du Lac will provide a unique addition to the gaming market in southern Louisiana. Natural materials, including stone and wood will set the overall mood of the facility. The resort’s relaxed and welcoming atmosphere will provide distinctive offerings certain to entice and entertain.
* Single level riverboat with non-stop gaming
This unique, 26-story, asymmetrical hotel complex will have over 700 spacious rooms, including over 100 suites. The guest rooms will be characterized by a contemporary, rustic theme. The well-appointed rooms and suites will utilize fresh colors and fabrics, providing an up-to-date version of the arts and crafts aesthetic. Both comfortable and inviting, the guest rooms are an ideal location to relax after an exciting day of resort activity.
Deluxe suites ranging in size from approximately 550 square feet to over 2,100 square feet, include a private “villa complex” adjacent to the hotel tower, overlooking either the lavish pool or the beautiful Contraband Bayou. Each villa includes a private courtyard and spa.
World-renowned golf architect, Tom Fazio, plans to emphasize the marsh and lowland features of the natural Louisiana environment to enhance this unique 7,000 yard, par-71 championship golf course. A combination of aquatic and natural vegetation on the edges of eight large spectacular lakes will challenge golfers of all skill levels. At least four sets of tee boxes on every hole will provide a unique playing experience for all.
About Pinnacle Entertainment
Pinnacle Entertainment owns and operates casinos in Nevada, Mississippi, Louisiana, Indiana and Argentina, and receives lease income from two card club casinos, both in the Los Angeles metropolitan area. The Company is currently building a major casino resort in Lake Charles, Louisiana and has been selected for two casino and related development projects in the St. Louis, Missouri area, pending approval of the Louisiana Gaming Control Board and the Missouri Gaming Commission, respectively.
All statements included in this press release, other than historical information or statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.
|Also See:||Hollywood Park Changes Name to Pinnacle Entertainment Reflecting Transformation to Gaming Entertainment Company / Feb 2000|