It cost $2.4 billion to construct Atlantic City’s Revel casino and hotel a few years ago, however the property only agreed to be offered in a personal bankruptcy auction for any mere $110 million.
Winning bidder Brookfield Resource Management intends to reopen the venue like a casino, but will not say whether or not this could keep the Revel title.
Brookfield has possessed Hard Rock Hotel and Casino in Vegas since 2011, and it has also run the Atlantis Paradise Island resort and casino within the Bahamas since 2012.
The offer still must be authorized by the personal bankruptcy court judge, but it appears as though Brookfield is going to score a significant bargain.
The very low cost might be the important thing to creating the brand new casino successful within the exact same place where Revel unsuccessful.
“The brand new owner had a high-cost resource in a rock-bottom cost. There is a big benefit within the original traders who required enormous deficits,” stated Frederick Seneca, an financial aspects and policy professor at Rutgers College.
However the new casino, such as the relaxation of Atlantic City, still faces a constant fight among intense competition from casinos from condition.
Annual revenue its Atlantic City’s casinos fell 6.2% this past year. This season, four from 12 Atlantic City casinos were made to close: Revel, Showboat, and also the Trump Plaza Hotel and Casino closed in the finish from the summer time, while Atlantic Club Casino Hotel shut its doorways in The month of january.
That put 8,000 people unemployed.
“We’re certainly hopeful this is an optimistic advance for Revel as well as for Atlantic City,” stated Ben Begleiter, a spokesperson for that local casino workers’ union.
Willis rejected to state whether all 3,100 of Revel’s employees is going to be rehired.