Poll

2 votes (28.57%)
5 votes (71.42%)

7 members have voted

bobsims
bobsims
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April 8th, 2014 at 4:35:09 PM permalink
I just found out, but I'm sure its been mentioned here, that CET found a sucker to buy the 90 year old Claridge hotel in AC and operate it as a non-gaming hotel. This in a city that just saw the 500+ room AC Hilton property get boarded up without causing a blip in room rates.
They are re-opening next month. I checked room rates throughout May and June and they are trying to get (hold on to your hat) $159 for midweek rooms-when most of the casinos are half that. Good luck with that.
So who got the worst hosing: the suckers who paid $12.5 million for the decrepit Claridge or the suckers who paid $21.5 million for the Gold Spike-now operating as a pizza parlor with a closed casino and shuttered hotel?
sodawater
sodawater
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April 8th, 2014 at 5:38:45 PM permalink
i do not understand their business model. you can't even give away hotel rooms in ac. how do they expect people to want to pay?
FatGeezus
FatGeezus
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April 9th, 2014 at 9:03:27 AM permalink
In 1983 Del Webb sold the Claridge for $151.5 million. In 2001 Bally's buys it for $65 million and TJM buys it from Bally's for $12.5 Million. Amazing how the value of that property dropped over 31 years.

It looks like CET lost $52.5 million when they sold it.
DJTeddyBear
DJTeddyBear
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April 9th, 2014 at 11:20:16 AM permalink
Frankly, I don't know how EITHER expects to turn a profit.

But the bigger sucker deal? Claridge. With the Revel being the poster-boy of AC casinos that are bleeding money, and the Hilton closing, what are they thinking?

At least the Gold Spike is in an area that seems to be on the up-swing.
I invented a few casino games. Info: http://www.DaveMillerGaming.com/ ————————————————————————————————————— Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
bobsims
bobsims
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April 11th, 2014 at 7:28:56 AM permalink
It's a real close call but I have to say the bigger suckers are the ones who spent $21 million for an operating casino plus TWO hotels and have turned that into a freaking pizza parlor!
Mostly because $21 million is more than $13 million.
BUT-it was pointed out to me today that the Frontier "deal" dwarves the other 2. In 2007 a group of suckers led by Yitzhak Tshuva bought the still operating (if barely) Frontier hotel/casino for 1.2 BILLION dollars and for the last 7 years have paid what is I'm sure tens of millions in property taxes on what is now 36 acres of dirt fronting the Strip-with no end in sight.
Dicenor33
Dicenor33
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April 11th, 2014 at 8:07:52 AM permalink
On my last visit of Biloxi. Plenty of open space, art museum, historical buildings. AC is poorly planned, it has a potential, might be the reason why someone bought Claridge.
Dicenor33
Dicenor33
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April 11th, 2014 at 8:30:04 AM permalink
Casinos become an integral part of American landscape. No longer it's a single gambling town miles from where you might reside. It might be a house next door. Players became better educated too. Many view gambling as an entertainment. I see nothing wrong with office buildings stay next to Ceasar's. We can witness the rise of beautiful cities with schools and wide prospects build entirely from the profits generated by the gambling industry.
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