Pechanga Tribal Nation

Good year for resort and casino

Pechanga resort marks year of success

June 22, 2003
WYATT HAUPT - Staff Writer - NCTimes.com

PECHANGA INDIAN RESERVATION ---- One year after the $262 million Pechanga Resort & Casino opened its doors near the southern end of Temecula, gaming revenue and hotel occupancy rates have far exceeded expectations, officials say.

The approximately 1 million-square-foot, 14-story complex is one of the largest and most recognizable structures ever built in Southwest County and includes a 522-room hotel, seven restaurants, a teleconferencing room, theater and 24,000-square-foot ballroom, which has hosted several high-profile boxing events.

And for those who like to gamble, there are also 2,000 slot machines, numerous blackjack and other game tables, a 700-seat bingo hall. The Las Vegas-style resort and casino has about 2,800 full-time employees, ranging from cashiers to maids and a virtual card dealer whose face stems from a video display.

"It looks like Vegas," said Julio Flores, who made the two-hour drive to Pechanga from Torrance with his wife on Friday to visit the casino for the first time.

Gaming revenue strong

While officials wouldn't disclose the amount of gambling revenue taken in since the resort opened last year ---- Tuesday marks one year since its grand opening ---- they did say that it's more than they counted on.

"Business is good, and we are happy," said Michelle Schilder, marketing director for the Pechanga Resort & Casino. "We have exceeded our expectations."

When the Pechanga Band of Luiseno Indians announced a few years ago that it wanted to expand its former 60,000-square-foot casino that opened in 1995 in temporary buildings, observers wondered whether the hotel would draw enough people to fill its rooms. Tribal officials themselves acknowledged that a hotel that big that far away from major tourist destinations was something of a gamble.

But the hotel's occupancy rate fluctuates between 45 percent and 55 percent in the first half of the week, with the figure hovering near 100 percent on the weekends, according to figures disclosed by Schilder. Regular room rates range from $99 per night in mid-week, to $169 for the weekend, with suites fetching about $369 per night.

Comparatively, hotel and motel occupancy rates in Temecula fluctuate between 60 percent and 90 percent daily, the city's finance department reports. Those rates are on par with lodging statistics in Riverside and San Bernardino counties, industry figures show.

Tribe's community involvement

Pechanga's success has also been a boon to the city of Temecula, which has partnered with the tribe to make infrastructure improvements near the hotel and casino. In 2001, the tribe contributed about $4.4 million to improve the section of Pala Road, now Pechanga Parkway, within the Temecula city limits. Part of that money was used to widen a 1.5-mile stretch of the roadway leading to the casino to four lanes from two lanes.

"That donation helped address some of the traffic impacts there," Temecula City Manager Shawn Nelson said, who characterized the relationship between the tribe and city as "excellent" and beneficial to the community. "They are also paying for sound wall improvements along Pechanga Parkway."

Schilder also points out that the tribe annually donates $100,000 to area high schools and also hosts its own annual golf tournament for the Inland Empire Juvenile Diabetes Research Foundation. Last year, the golf tournament raised a total of $30,000 for the foundation.

"It's good to be a good neighbor and to support and contribute back to the community," Schilder said.

Tribal Chairman Mark Macarro could not be reached for comment last week.

Future resort plans

Although Pechanga representatives are tight-lipped about future plans for the hotel and casino, Schilder did say that the tribe is researching the possibility of building an 18-hole, championship golf course to complement the resort.

Schilder said there was no time line for the golf course to be built, but did say the possible addition could broaden the appeal of the establishment ---- something always of interest to the resort's marketing team.

Meanwhile, the marketing team has zeroed in on Orange County and the southeastern portion of Los Angeles County as its target area for advertisements, mainly because that's where a number of their customers live.

The idea is to tap deeper into those two markets.

"Our marketing is pretty mainstream," Schilder said. "We do all the usual forms of advertising ---- outdoor, television and print."

Contact staff writer Wyatt Haupt at (909) 676-4315, Ext.2615, or whaupt@californian.com.

Pechanga facts

Total current employees - 2,800

Total wages paid, including tips - $61.9 Million

Total vendors paid - 1,676

Total vendor payments - $64 million

Sponsorships - $175,000

Donations - $944,000

Source: Pechanga Resort & Casino marketing department. For fiscal year 2002.

Link