Columbia Sussex

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Columbia Sussex
Type Private
Founded 1990
Headquarters Fort Mitchell, Kentucky
Key people William Yung III (CEO)
Industry Casinos and hotels
Products Hotels
Revenue $
Website www.columbiasussex.com

Columbia Sussex is a private hospitality company based in Fort Mitchell, Kentucky, a suburb of Cincinnati, Ohio. The company owns and operates hotels and casinos in various parts of the United States. As of 2007, the company operated 67 hotels under 13 different brands, and 14 casinos. Its current president is Bill Yung III.

Contents

[edit] History

Columbia Sussex, founded in 1972, entered the gaming industry in 1990 with its acquisition of the Lake Tahoe Horizon in Lake Tahoe, Nevada.

On May 19, 2006, Columbia Sussex signed an agreement to purchase Aztar Corporation, owner of the Tropicana Resort & Casino in Las Vegas, Nevada, the Tropicana Casino Resort in Atlantic City, New Jersey, and other properties. According to the purchase agreement, Columbia will pay $2.75 Billion for Aztar, including $54 cash per share for its common stock, and assume $676 million in debt. The sale was approved by the Nevada Gaming Commission on November 16, 2006 with a subsidiary of the company to operate the casinos. The sale was completed on January 3, 2007. Columbia Sussex has announced redevelopment plans for "The Trop" in Las Vegas, which would make it the largest casino-resort in the city and one of the largest in the world.[1] On May 26, 2006 Columbia Sussex announced plans to acquire the Casino Queen riverboat casino in East St. Louis, Illinois for $200 million. The deal was cancelled when the Illinois Gaming Board refused to speed up the licensing process to accommodate the timing of the sale.

[edit] Hotel brands operated

[edit] Marriott International

[edit] InterContinental Hotels Group

[edit] Starwood Hotels

[edit] Others

[edit] Casinos

The casinos are operated by Columbia Entertainment which is owned by William J. Yung, III, and Columbia Sussex. [2]

[edit] Tropicana Casino and Resort Atlantic City 2007 Casino license renewal controversy

On November 20, 2007 the New Jersey Casino Control Commission started its investigation into the renewal of the license of the Tropicana Casino & Resort, as well as whether its parent companies, Adamar of New Jersey and Columbia Sussex, are suitable to hold a casino license. Critics including Fred Burro, the Tropicana's former General Manager, testified before the Casino Control Commission on November 28, 2007 that Columbia Sussex CEO William Yung III had ordered him to make $40 million in payroll cuts, and when he opposed the layoffs, Yung became irate and fired him.[3]. In another incident, the National Environmental Health Association has refused to pay the Tropicana a portion of its $97,000.00 bill for a convention held at the resort because of reported bedbugs, roaches, rude employees, poor quality food and other unsanitary conditions.[4] The UNITE HERE Local 54 Union, which opposes the licensing, has been given permission by the Casino Control Commission to participate in the hearing. It is expected that the Union will present its own evidence and witnesses.

On Wednesday December 12th Columbia Sussex was denied a New Jersey license. [5][6]

On Saturday June 7th, CEO William Yung III stepped down.

[edit] References

  1. ^ "$2.1B casino deal closes", Cincinnati Enquirer. Retrieved on 2007-01-03. 
  2. ^ Tropicana Las Vegas. Retrieved on 2007-02-28.
  3. ^ Fired Trop Exec Says He Opposed Layoffs (Houston Chronicle retrieved November 28, 2007)
  4. ^ Conventioneers complain of bedbugs, roaches at Tropicana (Press of Atlantic City retrieved November 30, 2007.
  5. ^ Local 54 files to be part of Tropicana re-licensing hearing (Press of Atlantic City Retrieved November 8, 2007.
  6. ^ Judge says no to Trop request for restraining order against Local 54 (Press of Atlantic City Retrieved November 17, 2007.

Amid further controversy, with Tropicana Las Vegas facing similar cuts, similar problems have come to light. Now the Las Vegas property is facing service and sanitary violations, while the Nevada Gaming Commission watches the casino's behavior closely, as well as battling the Culinary Union.

In May '08, Tropicana Entertainment, LLC. filed chapter 11 bankruptcy protection as a result of it's actions since Columbia Sussex took over.

[edit] External links