A fire that engulfed a hotel located adjacent to Atlantic City's Borgata Hotel Casino & Spa on Sunday may affect the resort's expansion timetable.

The blaze swept through the south side of the 43-storey Water Club, which is still under construction, but has only caused ‘superficial damage’, according to authorities.

Borgata executives said the company is still working with its construction team to assess damage caused by the fire.

“While we have been planning for an early 2008 opening, it is too soon to know what impact this will have on the development timeline,” the company said in a statement.