Bloomberg Business reported recently that Caesars Entertainment Corp. could be in the bidding race for the Revel Casino Hotel in Atlantic City. The Revel cost $2.6 billion to build and opened in April of 2012; it hit bankruptcy courts in 2013. The property ownership lies in a group of hedge funds that aren't connected to a bigger organization.
Caesars owns four properties in the Atlantic City market and even though no details are known at this time, the company appears to be interested. In two weeks the final bids for the property will be submitted.
President of Spectrum Gaming Capital, Robert Heller, said, “They could fill the place,” in reference to how Caesars and Revel resorts would work well together because the Revel has a loyalty plan and extensive customer database that would coincide with Caesars' expansion plans and expectations.
The New York Post reported in December that Hard Rock International which is owned by Florida’s Seminole tribe could be interested in the Revel. Atlantic City would benefit from either company’s purchase of the property. Touted as a resort destination, Atlantic city has lost 43 percent of its revenue since 2006.
“The city is in the process of right-sizing and aligning supply with demand,” said Israel Posner, executive director of the Levenson Institute of Gaming, Hospitality and Tourism at Richard Stockton College of New Jersey in Atlantic City. “The division is known to be very careful and very judicious, and has a solid reputation for protecting not just the industry but the players as well.”
More information can found at Bloomberg Business.
Image courtesy of philly.com.