Las Vegas analysts expect L'Auberge to grow B.R. gaming market
The industry reviews on the recently opened L'Auberge Baton Rouge are in: Pinnacle Entertainment's $368 million hotel and casino complex is a winner. The Las Vegas Review-Journal reports Pinnacle, which is based in Las Vegas, recently conducted an analyst day for the property, which opened on Sept. 1. "Based on our conversations with various property managers and tours of several casinos, we believe Pinnacle will indeed cannibalize the existing Baton Rouge casinos by 35% to 40%, grow the market by about a third, and take some share from the destination casinos in New Orleans and Biloxi/Gulfport," Brean Murray Carret & Co. gaming analyst Justin Sebastiano says, adding L'Auberge Baton Rouge would easily rise to top-of-the-market status. JP Morgan gaming analyst Joe Greff, meanwhile, told investors Pinnacle executives believe the new hotel and casino development could achieve the cash flow necessary for a midteens return on invested capital. And Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski says: "We left Baton Rouge impressed with the quality of the asset and believe the property should be able to attract play from higher-end consumers residing in the local metro area, many of whom likely currently frequent more upscale regional destination assets in Biloxi and New Orleans." With a 74,000-square-foot gaming floor, 206-room hotel, four restaurants and a 13,000 square-foot events center, L'Auberge is larger than its two casino competitors in the market: Hollywood Casino and the Belle of Baton Rouge.
Today's poll question: Do you think L'Auberge Baton Rouge will expand the Baton Rouge gaming market?
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