Penn National plans for Tropicana

Penn National has a two-phase plan for Tropicana which was revealed in their latest earnings release earlier today.

Phase one involves integrating Penn's Marquee Rewards loyalty program at the property along with some other small improvements.

Phase two is more exciting with the potential for new restaurants, entertainment and even a new hotel tower. All of that will be based on customer demand though, so a major hotel expansion would likely be years down the road - if it ever happens.

Tropicana plans from the Penn National Second Quarter 2015 earnings release:

With our $360 million acquisition of Tropicana Las Vegas scheduled to close later this year, we will have achieved a key strategic objective to identify the right resort at a reasonable cost of entry on the Las Vegas Strip to unleash the significant potential of our database of nearly 3 million active customers. Tropicana Las Vegas, which recently underwent more than $200 million in facility upgrades, presents a tremendous opportunity to drive increased visitation to a premier Strip property, while at the same time allowing us to strengthen our competitive position in our regional gaming markets.

Penn National has developed a two-phase plan to realize the full value of this transaction, which we expect to implement over the next three to five years. In the first phase, we intend to invest approximately $20 million in additional facility improvements and integration activities, including upgrading the existing technology infrastructure to integrate Penn National's nationwide player loyalty program, Marquee Rewards. In the second phase, we intend to evaluate other potential facility enhancements at the property, such as the addition of retail offerings, food and beverage outlets, additional hotel rooms and enhanced entertainment offerings. The scope, budget and timing of any such expansion and improvements will be determined based upon Penn National's early operation of the property and customer feedback for additional amenities.