Boz
Boz
Joined: Sep 22, 2011
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August 12th, 2014 at 7:51:43 AM permalink
Its been said many times in many ways, but there is no way this place would be closing if it was run right from the start, including design. Properly designed and operated, AC would be closing 6-8 other casinos because they would not have been able to compete with Borgata and Revel. There would have perhaps been room for a few others that operated a lower cost hotel and casino, but this would not have happened.

PA, MD, NY and all the other issues were coming no matter what Revel did, but there is still enough money in AC for casinos run properly. Borgata shows this month after month and will continue to do so in the future. Even CZR will find a way to make money in AC by closing Showboat and cutting expenses in their other casinos in every manner possible.

Stupidity and incompetence isn't a crime, but if it was Kevin DeSanctis would be public enemy Number 1 for his actions here.
AxelWolf
AxelWolf
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August 12th, 2014 at 8:24:43 AM permalink
So sad, so sad. Such a beautiful place one of my favorite casinos. I loved the rooms and the overall decor. I am almost never impressed with the design of casinos, I was with this place.

So what will logically happen with this place? I cant imagine it will just sit vacant forever.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
GWAE
GWAE
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August 12th, 2014 at 8:44:15 AM permalink
Quote: AxelWolf

So sad, so sad. Such a beautiful place one of my favorite casinos. I loved the rooms and the overall decor. I am almost never impressed with the design of casinos, I was with this place.

So what will logically happen with this place? I cant imagine it will just sit vacant forever.



I agree, someone will take it over. I still think that CET would do well if they closed SB and ballys and took over Revel. They could bring in their players to the place. If anything they would at least have a busy casino.

I do wonder about the workings when buying a property like this. I am sure there are liens on the property. Also when someone buys it through bankruptcy, are they assuming the debt as well? Or can they just buy it for pennies and open re open it with no debt load other than day to day operations.
Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW
vendman1
vendman1
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August 12th, 2014 at 10:17:55 AM permalink
Quote: GWAE

I agree, someone will take it over. I still think that CET would do well if they closed SB and ballys and took over Revel. They could bring in their players to the place. If anything they would at least have a busy casino.

I do wonder about the workings when buying a property like this. I am sure there are liens on the property. Also when someone buys it through bankruptcy, are they assuming the debt as well? Or can they just buy it for pennies and open re open it with no debt load other than day to day operations.



This is what I've been saying for a while. It's too big and nice a property to just close completely. Even in a really down casino environment like AC. I'll miss it, it's a beautiful hotel. The casino layout is weird but still very upscale and pleasant. The property is easily the nicest in AC...only the Borgata is even close. Someone is going to pick it up for a song.
Wizard
Administrator
Wizard
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August 12th, 2014 at 10:35:15 AM permalink
Quote: vendman1

In addition, the bankruptcy courts main goal is to get the creditors as much money as possible. Isn't any money from a buyer, worth the NO money they will generate if they shutter the doors. I would think a competent owner/operator could make enough from the property to at least cover the day to day operating costs. But maybe I'm wrong.



I am wondering the same thing. Suppose the best offer was Caesars offers to pay $1 and assume the debt for 10 cents on the dollar, which I think they would, and nobody makes a better offer. What would be the downside of the bankruptcy court accepting it?

Somehow it just doesn't seem economically logical to close the building and the creditors get nothing.
It's not whether you win or lose; it's whether or not you had a good bet.
Boz
Boz
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August 12th, 2014 at 10:38:47 AM permalink
Quote: vendman1

This is what I've been saying for a while. It's too big and nice a property to just close completely. Even in a really down casino environment like AC. I'll miss it, it's a beautiful hotel. The casino layout is weird but still very upscale and pleasant. The property is easily the nicest in AC...only the Borgata is even close. Someone is going to pick it up for a song.




Not sure why everyone thinks this. Even at FREE, it seems the design is causing expenses from an HVAC standpoint that cannot be made month after month. I am the first to blame how they ran it for most of the problems, but they were near capacity much of the summer, should have been making loads of money from the clubs and bars and were still losing tens of millions every month. Even moving the gaming revenues up to Borgata's level (which will not happen ever) would have them losing money based on expenses.

A look at their financial statements (attached) shows that there is a long hill to climb for any prospective buyers.

http://www.nj.gov/lps/ge/docs/Financials/QuarterlyFinRpt2014/Revel1stqtr2014.pdf


These reports and the previous years ones are why there are no qualified (whatever that means) bids for a casino/ hotel that everyone thinks looks beautiful on the outside, but has a cancer inside.
sodawater
sodawater
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August 12th, 2014 at 11:31:52 AM permalink
Revel already closed down an "E" in its boardwalk sign:

rxwine
rxwine
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August 12th, 2014 at 11:40:44 AM permalink
Good thing it wasn't just the "R" -- as might have cast more aspersion on any future sale.
The Hall of Unverified Claims is a vast place with many shelves.
EvenBob
EvenBob
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August 12th, 2014 at 11:42:06 AM permalink
Quote: Boz

Not sure why everyone thinks this. Even at FREE, it seems the design is causing expenses from an HVAC standpoint that cannot be made month after month.



Exactly. This is what happened to many royal
estates in England. The families owned them
outright, but couldn't afford to run them anymore.
Revel isn't even owned, it will just sit there
languishing until it's split into condo's and apartments
and malls somewhere down the road.
"It's not enough to succeed, your friends must fail." Gore Vidal
Fortalezo
Fortalezo
Joined: May 28, 2014
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August 12th, 2014 at 11:53:58 AM permalink
Quote: Boz

Not sure why everyone thinks this. Even at FREE, it seems the design is causing expenses from an HVAC standpoint that cannot be made month after month. I am the first to blame how they ran it for most of the problems, but they were near capacity much of the summer, should have been making loads of money from the clubs and bars and were still losing tens of millions every month. Even moving the gaming revenues up to Borgata's level (which will not happen ever) would have them losing money based on expenses.

A look at their financial statements (attached) shows that there is a long hill to climb for any prospective buyers.

http://www.nj.gov/lps/ge/docs/Financials/QuarterlyFinRpt2014/Revel1stqtr2014.pdf


These reports and the previous years ones are why there are no qualified (whatever that means) bids for a casino/ hotel that everyone thinks looks beautiful on the outside, but has a cancer inside.





Boz, thanks for digging up AC casinos' financial statements.

Based on those statements, Revel's doing really bad, i.e., its net income was NEGATIVE $42,268,000 as of 3/31/2014. Borgata's not doing so well financially. Its net income was NEGATIVE $10,664,000. If the King of AC is in a bad shape financial wise, then the rest of sh*tty casinos are in big trouble. More AC casinos will be sunk like Titanic within years.

http://www.nj.gov/lps/ge/docs/Financials/QuarterlyFinRpt2014/Borgata1stqtr2014.pdf


http://www.nj.gov/oag/ge/quarterlyfinancialrpt.html

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