Running head: CASINO / RESORT FINANCING REPORT FOR SEASIDE CORPORATION
Casino / Resort Financing Report for Seaside Corporation
Prepared by LRGS Project Management Associates
Introduction
The following report is prepared by LRGS, Project Management Associates on behalf of Tom James, CFO for Seaside Corporation. Mr. Jones contracted with LRGS to provide an assessment of financing options available as well as recommendations for financing the $600 plus million, 2,000 room casino / resort that Seaside hopes to beginning building in Biloxi Mississippi early next year.
Background
Seaside Corporation has several other casino hotels that cater to middle income patrons, often families, that are budget oriented and looking for destination locations. Other Seaside casino / resort locations offer family oriented recreation facilities like pools, slides, game rooms and childcare in addition to multiple restaurants and gambling facilities. Typically, Seaside hotels have a higher number of smaller, budget oriented rooms compared to many other casino/hotels. This of high number, smaller and more affoardable rooms has helped Seaside create a niche market in the lower income brackets that most facilities fail to meet while remaining equally as profitable due to typical occupancy and turnover rates paired with the normal robust income of the casino. Because of past success, Seaside is targeting a similar facility in the Biloxi area. Biloxi is growing as a ?gambling and entertainment' destination. Costs are more reasonable and following Hurricane Katrina, there are additional incentives to bring new business to the area.
To help Seaside evaluate the best mix of capital necessary for building a new facility in Bi ...