Pala Casino Spa & Resort announced a $170 million expansion on Thursday, becoming the latest player to the San Diego area’s casino boom.
A groundbreaking in October will kick off construction of a new 349-room hotel tower, a transformation of the pool area into a multi-pool complex, an expansion of the spa, casino floor and parking garage, as well as a full remodel of the current hotel and casino interior.
The project, which is expected to be completed in May 2019, will bring Pala’s total number of hotel rooms to 854, allowing it to better compete with two nearby rival casino resorts. Harrah’s Resort Southern California already boasts more than 1,000 hotel rooms, while Pechanga Resort & Casino will top that with nearly 1,100 when its new hotel tower is completed in December.
Pala CEO Bill Bembenek said the expansion is being propelled by the overall strength in the casino industry and resort guests’ interest in overnight stays.
“Currently, the demand for our hotel is very high. On weekends, holidays and promotion nights we can’t satisfy their demand,” Bembenek said.
“The driver for Pala has less to do with competition in the marketplace than our desire to be able to fulfill our guests’ needs.”
Pala’s expansion — its third in the 16 years since it became the first San Diego casino to open a hotel — comes at a very dynamic time in the region’s casino economy. Four other properties — Pechanga, Sycuan Casino, Viejas Casino & Resort and Barona Resort & Casino — are undergoing construction projects of varying scope and stages. Harrah’s SoCal recently completed the last phase of its multi-year $160 million expansion with the opening of its remodeled and enlarged spa.
Combined, the spending is estimated to exceed $1 billion.
“All of the casinos in Southern California have done a spectacular job in refreshing and expanding their properties,” Bembenek said.
“We’ve come out on the other side (of the Great Recession), the economy has healed and people are looking for ways to spend their recreational dollars. Casinos have to stay on top of their game.”
Pala, like other properties, is looking to enhance the luxury experience, with a tricked-out pool complex at its core. Pala will demolish its current pool and expand the area’s footprint, adding multiple pools, spas and cabanas. The pool area will remain adjacent to the recently built Starlight Theater outdoor entertainment venue.
“We really want to expand on the resort concept,” Bembenek said.
While details are still preliminary, Bembenek said the new hotel tower’s suites will overlook the pool and entertainment complex as well as “taking advantage of the spectacular views that we have.”
Gaming won’t be ignored, however. The project will increase Pala’s casino floor to over 102,000 square feet, from 90,000, and will add 500 new slot machines, for a total of 2,500.
Pala said its project will generate 400 construction jobs and, when complete, over 200 casino and resort positions. Pala currently employs about 2,000 people.
The San Diego area’s white-hot casino sector — Hollywood Casino Jamul-San Diego last year became the region’s 10th property — attracts gamblers, diners and resort-goers from throughout Southern California and northern Baja California.
A good portion of the clientele at Pala, Pechanga and Harrah’s SoCal comes from Orange County, LA, Riverside and San Bernardino, Bembenek, said.
“The gaming consumer in Southern California has a lot of viable options of where to go, as opposed to traveling to Las Vegas,” he said.
“And they’re not just casinos any more. With fabulous restaurants, spas, hotels and entertainment, they have significant amenities to offer.”
EXPANSION PROJECTS
Barona Casino & Resort Modest expansion and renovation of existing facilities; cost not available
Pala Casino Spa & Resort New hotel tower, for total of 854 rooms and suites; $170 million
Pechanga Resort & Casino New hotel tower, for total of 1,090 rooms and suites, new spa, pools, dining venues; $285 million
Sycuan Casino First hotel, with 300 rooms and suites, new pool complex, event space, restaurants; $226 million
Viejas Casino & Resort New 158 all-suites tower, for total of 391 accommodations, new pool, dining venues; cost not available