BANGOR (AP) – The price tag for the Hollywood Slots’ permanent “racino” has grown from $90 million to $131 million because of higher construction costs and additional money to build a hotel that’s part of the project.

Penn National Chairman and CEO Peter Carlino confirmed that there will be a hotel, and that’s largely the reason for the roughly $40 million increase in the project’s price tag.

“With the impressive results being generated by our temporary facility (on Main Street) and a substantial number of patrons driving significant distances to Hollywood Slots at Bangor, we are adding a hotel to the plans for the permanent facility,” Carlino said Thursday from Penn National’s corporate headquarters in Wyomissing, Pa.

Bangor officials are pleased that the project will include a hotel. The 121-room Holiday Inn is being razed to make room for the project.

City Manager Edward Barrett said he’s pleased that there’s definitive word on the hotel.

Barrett expected the finished product would “carry a significant (assessed) value.”

For the time being, Penn National continues to operate its temporary Hollywood Slots at Bangor with 475 machines in the former Miller’s Restaurant. The facility, which opened in November 2005, has paid more than $21 million to the city and state so far.

The 116,000-square-foot slots-only casino will open with 1,000 machines, with the potential for up to 1,500. It will also have three restaurants, an entertainment lounge, a gift shop and a parking garage for 1,500 cars and trucks, in addition to the hotel.

Construction on the larger, permanent facility is to begin in April, and will be completed by mid-2008.