Resorts International reduced the 1,000 rooms at Chalfonte-Haddon Hall to 566 by closing the older, smaller Chalfonte building due to the rooms being impossible to expand to the city's room requirements. The Haddon Hall was easier to convert, and space was available in the building to allow for a casino, restaurants, shops and a showroom. The company's logic in the decision to use Haddon Hall was that renovating an existing property on the boardwalk would give the company an advantage by allowing the resort to be open at least a year before its new-build competition, as well as being less expensive to construct. Though state leaders preferred companies to build new resorts rather than renovating existing properties, as Resorts International was the first casino project developed in New Jersey, the company was encouraged by the governor. This would not be the case with the later resorts built on the Boardwalk. Chalfonte-Haddon Hall was first briefly renamed The Palace Hotel in May 1977, before being again renamed Resorts International Hotel on July 1, 1977.