Chris Rynkiewicz, SVP & CFO, Borgata Hotel Casino & Spa
In an interview with Invest:, Chris Rynkiewicz, SVP & CFO of Borgata Hotel Casino & Spa, said that the resort’s strategy is focused on evolving with guest expectations and investing heavily to maintain its market leadership. “We’re focused on serving continuously evolving guest expectations and the heightened demand for premium experiences,” Rynkiewicz said.
What is your overview of Borgata Hotel, Casino & Spa, and what internal or market changes have had the greatest impact in the past year?
Borgata opened in 2003, and we’ve maintained our market leading position since our opening. We’re focused on serving continuously evolving guest expectations and the heightened demand for premium experiences. We continue to make significant investments in our property, such as renovating 25,000 square feet of our gaming floor, redesigned bars, refreshed dining concepts, and remodeled hotel towers. These enhancements to our amenities supplement our positioning in a highly competitive Atlantic City market. We also invest a considerable amount of capital in the general infrastructure of our building. Borgata has noticed shifts in consumer behavior toward digital engagement and loyalty programs that now influence how we invest in technology and our overall customer experience.
How is Borgata adapting to competitive pressures and changing traveler expectations?
Borgata is the ultimate luxury resort destination on the East Coast. We continue to offer a compelling reason for our customers to travel and make that visit to us. Borgata offers an air charter program that flies customers in from various markets. For our VIP guests, we are pleased to provide an exclusive private jet experience. We recently added a helipad on the property, where we can fly in customers from within a 200-mile radius departing mainly from New York City. Our customers have been ecstatic about this service and the ability to access the property in a luxurious, yet efficient way.
Have any regulatory changes impacted your strategy when it comes to gaming at the Borgata?
From a regulation standpoint, there haven’t been many changes in recent years. It takes good relationships, open conversations, and innovation to be successful in a regulatory environment. Working with the regulators takes innovation and creativity when it comes to offering solutions to our customers that ultimately result in a better experience overall. Borgata sets the standard in our industry.
How is Borgata reshaping its offers in terms of nightlife and entertainment experiences?
Borgata is always focused on entertaining our guests. We excel at that. Our focus is always on gaming, but to be successful in this market, you need diversification. That diversification includes, beyond the casino floor, compelling dining options, modern rooms, spa, retail, nightlife, and entertainment. When you talk about the nightlife and entertainment options, we do have some interesting projects in the works that are going to be well-received by our customers. You’ll have to look out for those exciting announcements soon.
Why did the hotel close the Premier Nightclub, which had been a fixture in Atlantic City’s nightlife?
Our success over the last 20 plus years has been built on diversification. We obviously offer great gaming experiences, but it goes well beyond that. The diversification of our business into the non-gaming arena is where we separate ourselves from our competitors. With the recent closure of Premier Nightclub comes exciting opportunity to provide a better experience for our guests. Borgata is continuously pushing the envelope and exploring experiences outside of the traditional casino standards. We are excited about what’s going to come with this project as well as other non-gaming projects.
What changes have you noticed in guest demands and preferences?
The desire for premium offerings is prominent with our guests. They have always sought elevated, personalized experiences. We invest heavily in high-end spaces and VIP services. Digital transformation is another factor. With the recent growth in online and mobile engagement, Borgata is encouraged to integrate strategies with our land-based operations to leverage the synergies between the two businesses. With evolving customer demographics, we attract younger, experienced-driven guests to supplement traditional gaming customers to ensure Borgata continues to lead across all demographics.
How does the hotel approach innovation?
Innovation is key. You must listen to your customers and react to valuable feedback. Borgata conducts customer focus groups to understand our guests’ expectations and how we can evolve to improve their overall experience. Our incredible team delivers exceptional customer service, coupled with significant capital reinvestment in our property, which results in customer satisfaction and strong brand loyalty.
What are the biggest challenges the hospitality sector faces in Atlantic City, and how is Borgata navigating those?
In addition to workforce recruiting and retention, we’ve seen the same challenges that have existed since we opened in 2003. Borgata has always been resilient and able to work through challenges. There are eight other properties in Atlantic City that we compete with every day. We also have other jurisdictions in neighboring states that we compete with. Online gaming continues to grow post-pandemic.
What is your near-term outlook for the Borgata Hotel, and what are your top business goals?
Borgata remains the market leader in Atlantic City. That’s driven by innovative reinvestment in the property. We have planned significant projects coupled with great customer experiences that our guests love. Atlantic City is positioned for growth as reinvestments across the city attract new visitors. There’s an expectation of steady gaming demand with a growing emphasis on diversified non-gaming experiences, inclusive of entertainment, dining, spas, and retail.
While macroeconomic pressures exist, our strong brand and our diversified offerings have made us resilient from day one.
