IP Casino Resort Earns Four-diamond Status

Post-Katrina Upgrade and Revenue Management Technology

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. October 14, 2008

AUGUST 22, 2007. The Four-Diamond IP Casino Resort Spa in Biloxi, Mississippi is an extraordinary post-Katrina success story. The waterfront Biloxi Bay high-rise casino property, named the Imperial Palace Hotel and Casino before the storm, was severely battered by Hurricane Katrina in August 2005. In January 2007 the property re-branded as IP Casino Resort Spa after a total property renovation that upgraded the entire hotel and gaming facility, and in April 2007 it was awarded a Four-Diamond rating from AAA. Today the IP is attracting a new class of guest and building stronger regional loyalty. Proof of success is in the numbers: the 1,087-room IP is running at over 90 percent occupancy with a 300 percent higher average daily rate (ADR) since its post-Katrina renovations.

"Our owners and the entire property team worked hard to create the new IP Casino Resort Spa from the shell of the old property," said Robert Brigham, VP of hotel operations. "Everything about the IP is upgraded from the pre-Katrina facility, and our Four-Diamond rating means we are attracting a higher-rated type of guest. With the help of a new revenue management system, our ADR is up 300% and we are running very high occupancies." Brigham explained that prior to the IP's upgrade and new casino revenue management technology, it frequently packed rooms with sports groups and convention business that did not bring revenue to the gaming floor. "Now we use the revolution SM revenue management software (RM) system from The Rainmaker Group to optimize the room rate for each guest and group based on their value to all areas of the enterprise, including the casino."

Brigham's team maximizes IP's profitability by leveraging the revolution system's ability to accurately estimate the total property profitability of each guest segment by analyzing player gaming information and other data to set rates that are attractive to the most valuable segments. The system's rate recommendations are based on historical gaming performance and include forecasted additional revenue from dining, spa and other sources.

Convention business is a booming market along the Gulf as the region continues its renaissance. "Our meeting space totals about 20,000 square feet and it is in high demand," explained Brigham. "To ensure we accept the most valuable groups, we run every potential piece of business through a profitability analysis in Rainmaker's group module to forecast its theoretical revenue contribution to the company. I personally approve every group we accept to maintain our standards." Other property departments also use the Rainmaker group forecasts to set appropriate staffing levels.

The IP Casino Resort Spa is continuing to upgrade and currently expanding two of its large penthouse suites, converting one to a luxury spa massage facility. The resort's cinema is also scheduled for a total makeover and will emerge as an elegant Asian themed restaurant. With its upscale appointments, attention to detail and Four Diamond rating it looks like good fortune will keep smiling on the beautiful IP on Biloxi Bay.