Historic Claridge Hotel
As it stands today
Posted: Monday, November 11, 2013 10:27 pm
By JENNIFER BOGDAN Staff Writer
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Atlantic City’s historic Claridge hotel will keep its name as it leaves its casino days behind, but much of what its next life will look like isn’t yet clear.
Bally’s Atlantic City recently announced plans to sell off the Claridge Hotel Tower to TJM Properties, a Florida-based hotel operator making its first foray into the Atlantic City market. The 500-room, distinctive brick building, which dates to the Depression era, has been part of the Bally’s complex since 2002.
Dale Schooley, TJM’s director of acquisitions, said the company had little familiarity with the Atlantic City market but was attracted to the property because of its historic nature. A sale price has not been disclosed. The company, which operates 10 hotels in the Tampa Bay region as well as a number of senior living communities, plans to eschew gambling and keep the property as a stand-alone boutique hotel.
“We’re not quite sure about a theme,” Schooley said. “One of the things we want to be is the nongaming hotel at the beach for families. My feeling is that there are a lot of families that would want to be in a nongaming hotel.”
Schooley said the 24-story hotel patterned after New York City’s Empire State Building caught the company’s eye, in part, because it was reminiscent of another historic property in its portfolio. TJM also owns the Princess Martha in downtown St. Petersburg, Fla., which dates to 1924. TJM has turned that 10-story property into a senior living community.
In Atlantic City, the company will be open to entertaining proposals from prospective tenants. Schooley said TJM would like to bring one or two restaurants into the property, as well as retail shops and any other activities that would appeal to families.
At one time, Bally’s offered three floors of gambling at the Claridge, but all gambling was removed by the early part of 2013 as the casino explored other plans for the property.
Kevin Ortzman, senior vice president of Bally’s, Caesars Atlantic City and Showboat, said the sale, expected to close in January, should have multiple benefits. It will allow Bally’s to focus on a smaller footprint while hopefully expanding non-gambling amenities in Atlantic City, one of the goals of Gov. Chris Christie’s plan to revitalize the resort. Bally’s is one of four Atlantic City properties owned by Caesars Entertainment Corp.
“Honestly, we were undecided with the direction we were going,” Ortzman said of the plans for the Claridge. “We were continuing to explore options and then Sandy was a distraction to all of us. When an opportunity presented itself, it made sense to pursue it.”
Ortzman said he’s pleased to see the Claridge go to an enthusiastic operator with a common objective of improving the quality of Atlantic City’s tourist experience.
Atlantic City has tried to capitalize on the boutique hotel scene before to mixed results.
The Chelsea Hotel opened in 2008 as owners called the property a throwback to Atlantic City’s heyday as a posh beachfront town before casinos ever emerged. Renovations totalling $112 million were poured into what had been the Holiday Inn and Howard Johnson hotels to create the property.
In the winter months, the Chelsea closes during the week. Hotel rooms in November are only available Friday through Sunday, and the hotel’s two restaurants — Dining on the Fifth and Teplitzky’s — also close for a majority of the week.
A sky bridge connects the Claridge to the rest of the Bally’s complex, which includes the Bally’s Hotel tower, the Dennis Hotel and the Wild Wild West Casino. Ortzman said Bally’s hopes to keep that bridge open, allowing patrons to easily move between the properties.
Bally’s also hosts the Legends in Concert show at the Legends Theater, formerly the Palace Theater, in the Claridge. Ortzman said the casino hopes to come to an agreement with the owners that will allow the show to continue in that location.
TJM has plans for some renovations following the close of the sale but exactly how much money will be spent to improve the property isn’t clear, Schooley said. The company plans to keep the property in operation while the renovations are made, he said.
The Claridge last saw renovations in 2010 as Caesars invested $20 million in refurbishing the rooms and the exterior of the building.
Contact Jennifer Bogdan:
609-272-7239
JBogdan@pressofac.com
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