Atlantic City to Get Premier Hotel, Minus the Casino
- Feb 13, 2008
It’s not necessarily all about rolling the dice in Atlantic City, and Cape Advisors Inc. plans to capitalize on the demand for upscale accommodations with the development of a 332-room hotel that will forego the seemingly requisite casino. The Chelsea (pictured) will be the first non-gaming hotel to be built on the Boardwalk in the last four decades. Cape Advisors has partnered with investor group Normandy Real Estate Partners on the project which, according to construction market information provider BuildCentral Inc.’s database on new construction, is a $93 million endeavor. The Chelsea will sit near the Tropicana Casino & Resort along a highly coveted beach, making its home on the sites of the former Holiday Inn Atlantic City-Boardwalk and the Howard Johnson Hotel Atlantic City. In early 2007, Cape Advisors acquired the two mid-market lodging facilities, which will be redeveloped and linked together to create the Chelsea, and closed their doors last September to kick off the new project. In addition to the guestrooms, the 21-story property will feature a fitness center, several restaurants and lounges, a 6,500 square-foot spa complex and over 4,400 square feet of meeting space. Atlantic City is the second-largest gaming market in the nation and its ability to accommodate visitors’ lodging needs is becoming increasingly challenging. “On the weekends, if you’re not a card-carrying member of a casino, it’s hard to get a room,” Deanne Hoppe, vice president of marketing for Cape Advisors, told CPN today. “The casino resorts cater to gamblers.” Not only will the Chelsea help accommodate the increasing general demand for hotel space in the city, it will also tap into a different but growing niche. “We wanted to create a hotel for people who enjoy gambling but on an entertainment level; people who enjoy what Atlantic City has to offer but at the end of the day, want to come back to an upscale, non-gaming hotel to avoid the hustle and bustle of a casino floor. Atlantic City is becoming more of a resort destination instead of a gaming town.” The Chelsea is on schedule to debut this summer. Cape May, N.J.-based real estate firm Cape Advisors develops office, mixed-use, residential, industrial, hotel, retail and conference center properties. The company targets adaptive reuse and historic preservation projects across the country. Headquartered in Morristown, N.J., Normandy is one of the leading real estate private equity firms in the country, with a diversified real estate portfolio of owned and operated properties in the Northeast and Mid-Atlantic regions.