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Hotel Company Bets on Casinos

OHIO – As reported by the Cincinnati Post: "Casino gambling isn't normally regarded as a conservative financial strategy, but for Fort Mitchell-based Columbia Sussex Corp., it might be just that.

"The owner and operator of more than five dozen Marriott, Holiday Inn and other hotels across the country expects to close on three casinos by the end of the year - one each in St. Louis, New Orleans and Nevada on Lake Tahoe. That will give it nine altogether.

"While casinos are all about gambling and beating the odds, that's mostly from their patrons' perspective. For casino owners, the odds are more favorable - and much more predictable thanks to the law of averages.

"Bill Yung, president and founder of Columbia Sussex, regards casinos as a more stable business model than hotels. There are only about 400 casinos in the country, and unlike hotels, the competition doesn't change much, he said.

"…Columbia Sussex is the largest privately owned hotel company in the United States, he said, and he's increasing his stake in casinos to get a more balanced portfolio. After the company completes its pending acquisitions, revenues and profits will be roughly equally split between the two industries, he said…"

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