The Revel Resort has been sold for a reported $110 million to a Canadian company that owns the popular Hard Rock hotel/casino in Las Vegas and a property in the Bahamas.
Brookfield US Holdings LLC emerged as the successful bidder, according to NJ.com.
Florida developer Glenn Straub was the initial bidder for the property, was selected as backup bidder.
The sale is condition on court and regulatory approvals. The company indicated it wants to reopen the shuttered $2 billion-plus site as a casino.
The Revel never gained traction in a tough market for gaming. It also has considerable overhead expenses that come with a $2 billion property.
The casino/hotel never seemed to recover from an attempt to position itself as an upscale property. It also opened with a smoking ban that was later lifted after it went through one of two bankruptcy proceedings.
The last bankruptcy filing led to its closing in September.
Like other Atlantic City casinos, it has been battered by “Walmart style” casinos with lower operating costs and few amenities in Pennsylvania and Maryland. It’s nearest neighbor on the boardwalk, The Showboat, remains closed.
Delaware casinos that are tied to horse tracks are also struggling, with the General Assembly coming up with assistance during two successive years. The racinos want to see a reduction in the state’s take on revenues, now believed to be among the highest in the nation.
“We’re excited,” Brookfield senior vice president Andrew Willis. said . “We think this is a trophy asset on the Atlantic City beachfront and we’re acquiring it at a substantial discount to its replacement costs.”
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via Bankrupt Revel sold for $110 million to firm with casinos in the Bahamas and Las Vegas | NJ.com.
