Pinnacle at the Pinnacle of Growth

 So far this mid sized company has been on a development and acquisition tear rivaling some of the biggest industry players as it sets out to become a leading casino owner/operator.

Currently the company has more than $1 billion in ongoing and planned developments with more expected to be announced during the coming months. Additionally, Wall Street analysts such as Adam Steinberg of Morgan Joseph have rated Pinnacle as a “buy" with the stock pegged to rise at least $8 a share from its current $30 position.

Last week the company announced plans to build an all-new $350 million casino resort in Lake Charles, LA, adjacent to its L\'Auberge du Lac Hotel & Casino property. The new resort is a replacement for the Harrah\'s Lake Charles facility, which was mostly destroyed by Hurricane Rita. Pinnacle agreed to acquire it last month from Harrah’s in exchange for its Casino magic Biloxi site, other related assets, and an additional payment to Harrah’s of approximately $25 million.

Dubbed Sugarcane Bay and set to open in 2009, the resort is designed to evoke southern charm crossed with an island feel reminiscent of the Caribbean. While details are still vague, it is known there will be 400 guestrooms and suites, many with panoramic views of the Contraband Bayou. There will also be a poker room, table games such as blackjack and craps, about 1,500 slots as well as restaurants, retail shopping, and a tropical themed pool area and spa.

L\'Auberge is also expanding with the addition of a 250-room hotel tower, which will open in 2007 and bring the property’s total room count to 1,000.

In downtown St.Louis, Pinnacle just announced it will add $80 million to the $350 million project, increasing its size and scope. While some of the increased budget will go to higher than expected construction costs, designers have added a nightclub, parking, site improvements and additional retail outlets.

"Since our original efforts in the area began, the St. Louis gaming market has shown solid growth and the revitalization of the downtown area has continued, including the recent opening of the new Busch Stadium approximately 10 blocks from our site," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "We remain confident about our investment in downtown St. Louis and look forward to our resort\'s opening in the second half of 2007."

Also in St. Louis is the now under construction River City Casino & Hotel. The $375 million project broke ground in November 2005 and will include a casino with 3,000 slot machines and 60 table games, a 100-room hotel, spa, restaurants, a boutique bowling alley, a multiplex movie theatre, indoor ice rink, public park with athletic fields and a hatch-shell music and entertainment venue. It is expected to open in 2008.

Last month the company opened The Casino at Emerald Bay, located on the island of Great Exuma in the Bahamas. The casino adjoins the Four Seasons Resort Great Exuma and is the first and only casino on the island. The intimate 5,000 square-foot casino has 65 slot machines and eight table games, including blackjack, craps and roulette.

With Pennsylvania in the process of legalizing slot machines, Pinnacle is expected to be given a license for a property on the Philadelphia riverfront. If approved, they will convert a building into a temporary casino before embarking on a project expected to cost between $300 million and $400 million. The casino will include an 80,000-square-foot casino with 3,000 slot machines; 3,000 parking spaces; five restaurants and a food court; a multiplex movie theatre; an outdoor waterfront reflection pool which becomes an ice skating rink in the winter; and 36,000 square feet of retail and entertainment outlets. If successful a second phase would expand the casino to 130,000 square feet to accommodate a total of 5,000 slot machines, expand parking to 5,000 vehicles, and add restaurants, retail and entertainment outlets. A 500-room hotel tower, residential and office tower, and the further restaurant, retail and entertainment outlets are also envisioned.

"We intend to create an urban resort that embraces the Delaware River, honors its importance to the city, and orients the heart of the project toward the river\'s edge," said Lee.

Pinnacle hasn’t been hitting it out of the ballpark with every expansion bid. It was unsuccessful in its attempts earlier this year to acquire Aztar Corporation in order to gain assets including the Tropicana which is located on the Las Vegas Strip. It eventually sold to Columbia Entertainment.