By DONALD WITTKOWSKI
(Published: Wednesday, March 11, 2009)
The Water Club, the boutique hotel at Borgata Hotel Casino & Spa that brought ultraluxe lodgings to Atlantic City right before the recession hit, is the latest casualty of the economic meltdown.

Borgata will take most of the Water Club�s 800 rooms out of service during slower midweek days in response to declining business, The Press of Atlantic City has learned.

Rooms will be closed on most Tuesdays, Wednesdays and Thurs-days starting next week and continuing through April, according to Rob Stillwell, a spokesman for Borgata�s parent company, Boyd Gaming Corp.

�One of the things we�ve noticed in this difficult economic environment is that guests are having shorter booking windows,� Stillwell said of advance hotel reservations. �We have less visibility into the future. That�s why we can�t speak beyond next month.�

Guests who had previously been booked for midweek stays at the Water Club will be switched to Borgata�s 2,000-room main tower.

Stillwell said Borgata hopes to resume full bookings at the Water Club in May, when the Atlantic City market normally shifts into high gear for the start of the peak summer tourism season.

Stillwell said that although most rooms will be taken offline during midweek, the hotel and its amenities will remain open for guests staying in suites, as well as for group business and special events.

�It�s not closed,� he said. �It�s an adjustment to our guest-room availability.�

Considered Manhattan chic, the $400 million hotel opened last summer just as the faltering economy was lurching closer to a full-blown recession. Room rates began at $300 to $329 per night for midweek stays and between $500 and $700 for weekends, but Borgata has since slashed those prices, according to the hotel reservation Web site.

Jeffrey Vasser, president of the Atlantic City Convention & Visitors Authority, did not know of any other casinos in town that have taken so many rooms out of service. But he noted that casino hotels have been reducing rates industrywide to attract price-sensitive customers during the economic crisis.

�You�ve seen all winter long that hotels have been conscious about value,� Vasser said. �It�s no secret that the economy is tough and rates are down.�

Atlantic City�s gaming industry has been battered in recent months by the recession and competition from Pennsylvania slot parlors.

The three casinos operated by Trump Entertainment Resorts Inc. filed for bankruptcy last month, Resorts Atlantic City is fighting against foreclosure after defaulting on its mortgage, and Pinnacle Entertainment Inc. just announced that its proposed $1.5 billion megaresort probably will never be built.

Gaming revenue generated by the 11 casinos plunged 19.2 percent in February, marking the biggest monthly decline ever in the city�s 31-year history of legalized gambling. Revenue fell 7.6 percent, to $4.55 billion, in 2008 and has been down the past six months in a row. Casinos have cut 2,700 jobs in the past 12 months.

When the Water Club opened its doors in June, the hotel had 800 employees � one for each room � while boasting of superior customer service. Stillwell declined to say whether the hotel staff was cut back as part of hundreds of layoffs Borgata has made in recent months amid the casino slump.

Wrapped in shimmering gold-hued glass, the Water Club symbolizes Atlantic City�s push to become a higher-end tourist destination featuring posh hotel towers and an array of upscale retail shops, restaurants and nightclubs.

Stillwell said Borgata remains confident the hotel will be a magnet for guests wanting luxury accommodations.

�The Water Club has been a great addition to Borgata and there is no question in our mind relative to that addition,� he said.

In anticipation of stronger summer business, Borgata plans to make the Water Club more attractive by adding 5,000 square feet of deck space and bars to an outdoor pool area, Stillwell said.

The Water Club is so-named because of its five heated indoor and outdoor pools and a lavish �spa in the sky� offering panoramic views of the city and ocean from its perch on the 32nd floor.