Caesars Entertainment Corp. could be adding another property to its portfolio. According to Bloomberg Business, the company may bid for the Revel Casino Hotel in Atlantic City, a property that cost $2.6 billion to build.
The property, which opened in April 2012 and went through bankruptcy in 2013, is owned by a group of hedge funds with no connection to a larger organization. Caesars, which currently has four properties in the Atlantic City market, is apparently interested, though details are scarce as deliberations are private. Final bids for the property are due in two weeks.
Robert Heller, president of Spectrum Gaming Capital, believes the resort would be a good fit for the company, especially because of its loyalty plan and extensive customer database. “They could fill the place,” Heller said.
In December, the New York Post reported that Hard Rock International, owned by Florida’s Seminole tribe, may also be interested in the Revel. Either company’s purchase of the property would be a boost to Atlantic City, a resort destination that 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.”
For more information, visit Bloomberg Business.
*Lead photo courtesy of achotelexperts.com.