AC: Revel Close...Sale...Fail
October 6th, 2014 at 5:34:08 PM
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New info re the fate of Revel employees & players:
I've not seen this made public before:
" Revel will hand over all assets needed to operate a casino—all gaming machines, equipment, computers, furnishings, and customer databases. However, the agreement also notes that Brookfield “shall have no obligation to make any offers of employment to employees.”
http://www.nj.com/news/index.ssf/2014/10/former_revel_employees_not_guaranteed_a_job_if_the_bankrupt_casino_reopens.html
I've not seen this made public before:
" Revel will hand over all assets needed to operate a casino—all gaming machines, equipment, computers, furnishings, and customer databases. However, the agreement also notes that Brookfield “shall have no obligation to make any offers of employment to employees.”
http://www.nj.com/news/index.ssf/2014/10/former_revel_employees_not_guaranteed_a_job_if_the_bankrupt_casino_reopens.html
October 6th, 2014 at 6:54:51 PM
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I'm surprised.Quote: 7star4nowNew info re the fate of Revel employees & players:
I've not seen this made public before:
" Revel will hand over all assets needed to operate a casino—all gaming machines, equipment, computers, furnishings, and customer databases. However, the agreement also notes that Brookfield “shall have no obligation to make any offers of employment to employees.”
http://www.nj.com/news/index.ssf/2014/10/former_revel_employees_not_guaranteed_a_job_if_the_bankrupt_casino_reopens.html
I am a robot.
October 8th, 2014 at 4:32:11 PM
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A casino architect believes fixing Revel isn't difficult (a first?)
"Grumbling about the casino being on an upper floor, rather than at street level, could be resolved by moving the main drop-off point for cars into the garage, though "some of the most successful casinos in the world have their main gaming floor on the upper floors," Steelman said.".."That would help gamblers avoid what David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, called "the escalator of terror."...
"The hotel has another casino-access problem, Steelman said: "You can't get into your hotel elevator and press a button that says 'casino.' It's a button that says 'lobby.'"Guests must get off the elevator in the hotel lobby and trek to the escalator or another set of elevators to get to the casino."That is a problem. You have to fix that," Steelman said. "Those elevator shafts, I guarantee you, go down to the casino."....
Outside, Steelman would crack open Revel's walls along the boardwalk."You have to have some fantastic food court down there or something that relates to the boardwalk," he said.But any amount of money spent on these measures has to be weighed against the potential of completing the 15 floors of hotel rooms that were mothballed, Steelman said...
Here's my modest proposal.
With an Atlantis theme, fill the empty ground floor space which contains the"the escalator of terror", with a huge Plexiglas indoor aquarium (a la Atlantis).
replace the steep escalator with a series of gently sloped connected moving walkways thru Plexiglas enclosed tubes that meander thru the sea life, transporting visitors from street level to the Casino
http://www.philly.com/philly/business/20141009_A_casino_architect_believes_fixing_Revel_isn_t_difficult.html
"Grumbling about the casino being on an upper floor, rather than at street level, could be resolved by moving the main drop-off point for cars into the garage, though "some of the most successful casinos in the world have their main gaming floor on the upper floors," Steelman said.".."That would help gamblers avoid what David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, called "the escalator of terror."...
"The hotel has another casino-access problem, Steelman said: "You can't get into your hotel elevator and press a button that says 'casino.' It's a button that says 'lobby.'"Guests must get off the elevator in the hotel lobby and trek to the escalator or another set of elevators to get to the casino."That is a problem. You have to fix that," Steelman said. "Those elevator shafts, I guarantee you, go down to the casino."....
Outside, Steelman would crack open Revel's walls along the boardwalk."You have to have some fantastic food court down there or something that relates to the boardwalk," he said.But any amount of money spent on these measures has to be weighed against the potential of completing the 15 floors of hotel rooms that were mothballed, Steelman said...
Here's my modest proposal.
With an Atlantis theme, fill the empty ground floor space which contains the"the escalator of terror", with a huge Plexiglas indoor aquarium (a la Atlantis).
replace the steep escalator with a series of gently sloped connected moving walkways thru Plexiglas enclosed tubes that meander thru the sea life, transporting visitors from street level to the Casino
http://www.philly.com/philly/business/20141009_A_casino_architect_believes_fixing_Revel_isn_t_difficult.html
October 8th, 2014 at 6:02:07 PM
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I know it as the deathscalator since a guy died falling from it.
I am a robot.
October 8th, 2014 at 6:16:40 PM
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Quote: onenickelmiracleI know it as the deathscalator since a guy died falling from it.
I don't think he died.
Many people, especially ignorant people, want to punish you for speaking the truth. - Mahatma Ghandi
October 8th, 2014 at 6:22:03 PM
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Quote: 1BBI don't think he died.
He didn't so much fall as wind up dangling from the handrail. And he's very much alive. there have been some news articles about his attempted lawsuits. He keeps getting thwarted by the property's bankruptcies.
"So as the clock ticked and the day passed, opportunity met preparation, and luck happened." - Maurice Clarett
October 8th, 2014 at 6:36:57 PM
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Quote: 7star4now"Grumbling about the casino being on an upper floor, rather than at street level, could be resolved by moving the main drop-off point for cars into the garage, though "some of the most successful casinos in the world have their main gaming floor on the upper floors,"
I never saw a big problem with the casino not being right off the boardwalk... so that alone is fine.
However, the fact that the whole property is so disconnected from the boardwalk in general makes no sense, and the car drop-off entrance design with nothing to do and nowhere to go but up is also a puzzle.
I agree that having the room-access elevators so far from the casino needs to be fixed. Sometimes you just want to run up to your room for something quickly and you can't do that there.
October 8th, 2014 at 9:41:26 PM
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Quote: rdw4potusHe didn't so much fall as wind up dangling from the handrail. And he's very much alive. there have been some news articles about his attempted lawsuits. He keeps getting thwarted by the property's bankruptcies.
Not him. There was a guy who fell 40 feet onto the floor just after Revel opened. He was seriously hurt but didn't die.
Many people, especially ignorant people, want to punish you for speaking the truth. - Mahatma Ghandi
October 9th, 2014 at 10:10:52 AM
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Quote: 7star4now
"The hotel has another casino-access problem, Steelman said: "You can't get into your hotel elevator and press a button that says 'casino.' It's a button that says 'lobby.'"Guests must get off the elevator in the hotel lobby and trek to the escalator or another set of elevators to get to the casino."That is a problem. You have to fix that," Steelman said. "Those elevator shafts, I guarantee you, go down to the casino."....
I went to the Revel the first week that it was open. I wanted to see what all the excitement was about. After walking around, (and I do mean 'around' because if you walk thru the casino, you will wind up right where you started. The casino was designed in a circular design.) I decided to see what was on the upper floors. Actually, I was trying to find a restroom. I figured since the nightclubs and bars were upstairs, there must be a restroom nearby. I got in the elevator and there were four buttons. None of the buttons were numbered. They had two letters instead of numbers. I didn't know what they meant so I pressed all four. It was one of those elevators with front and back doors. The elevator went up and the doors behind me opened up. There were some people sitting at a conference table and I figured that this wasn't the night club floor. I can't recall which floor I finally found a restroom on. That was my first and last visit to the Revel.
October 9th, 2014 at 2:18:24 PM
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You would be hard pressed to find a more controversial casino then Revel. Personally I don't like the design of the place.
1. It takes forever to reach the casino from the boardwalk. Yes there is an elevator if you are aware of it but most will walk and take the escalator.
2. The casino itself is dark and broken up creating a confusing lay out. Try going to a well hidden poorly signed bathroom and finding your way back.
3. They had major issues with alienating gamblers and overbooking rooms and initially offered $8 tacos and $13 cheeseburgers as their "cheap eats."
I hope I am wrong but I see the overhead costs eating very deeply into profits. The place is huge with many open spaces that generate no revenue whatsoever. Sadly, I do believe the ship has sailed from Atlantic City. Particularly for boardwalk casinos.
Just my .02
1. It takes forever to reach the casino from the boardwalk. Yes there is an elevator if you are aware of it but most will walk and take the escalator.
2. The casino itself is dark and broken up creating a confusing lay out. Try going to a well hidden poorly signed bathroom and finding your way back.
3. They had major issues with alienating gamblers and overbooking rooms and initially offered $8 tacos and $13 cheeseburgers as their "cheap eats."
I hope I am wrong but I see the overhead costs eating very deeply into profits. The place is huge with many open spaces that generate no revenue whatsoever. Sadly, I do believe the ship has sailed from Atlantic City. Particularly for boardwalk casinos.
Just my .02
October 9th, 2014 at 3:16:36 PM
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Sounds like it was designed by a woman in
her 20's who hated casinos and had no
experience with them.
her 20's who hated casinos and had no
experience with them.
"It's not called gambling if the math is on your side."
October 9th, 2014 at 3:20:43 PM
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Quote: EvenBobSounds like it was designed by a woman in
her 20's who hated casinos and had no
experience with them.
You're so prescient! lol....
If the House lost every hand, they wouldn't deal the game.
October 9th, 2014 at 3:35:00 PM
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That's what's great about the casinos in DT
Vegas. No walking very far for restrooms
and elevators.
Vegas. No walking very far for restrooms
and elevators.
"It's not called gambling if the math is on your side."
October 9th, 2014 at 4:46:35 PM
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Quote: EvenBobSounds like it was designed by a woman in
her 20's who hated casinos and had no
experience with them.
Even worse, she was supervised by an ex State Trooper who despised gamblers.
October 9th, 2014 at 6:12:19 PM
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Quote: 7star4nowEven worse, she was supervised by an ex State Trooper who despised gamblers.
Not sure about supervised. I would say he was infatuated by her and let her make the design decisions. Along with his other friend UK they spent many a nights figuring out how best to make a resort (DONT call it a casino) that would be so poorly designed and operated, it would be hated by almost everyone. And in this point they were a huge success.
October 15th, 2014 at 9:44:40 PM
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The biggest issue at revel was whoever was put in charge was high and thought they could run the place as a resort first, casino second.
By the time they tried to develop a real player loyalty program it was too late.
By the time they tried to develop a real player loyalty program it was too late.
October 15th, 2014 at 10:43:44 PM
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Quote: sc15The biggest issue at revel was whoever was put in charge was high and thought they could run the place as a resort first, casino second.
TIMELINE
April 2, 1990: Trump Taj Mahal opens
January 21, 2003: Governor Ed Rendell of PA begins his term. Made campaign promise to introduce gaming to PA
July 21, 2004 Joseph W. Marshall named to head Pennsylvania State Gaming Control Board
April 2006: Morgan Stanley acquires the South Inlet property adjacent to the Showboat Casino Hotel for $70 million.
Oct. 6, 2006: Morgan Stanley selects Revel Entertainment to develop and operate a casino that will rise from a 20-acre oceanfront site in the city's South Inlet section.
Times were still good in AC in 2006, but the approvals were all made for the PA casinos. At the time PA was only going to be "slot clubs" so it wasn't obvious that they would devastate the casino business in Atlantic City. But growth in AC had been steady since the casinos opened, and revenue growth stalled immediately when the first casino opened in race track outside of Philadelphia.
It's easy to look back after the fact and see the correct decision. But it shouldn't have taken a crystal ball to see that expansion with that much competition may not have been a good idea.
October 22nd, 2014 at 4:28:03 PM
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New Revel owners inherit parting gift (ball & chain) from Kevin D.,et al: power plant -The mystery of Revel's electricity bill revealed:
"It’s the millstone that Revel Casino Hotel couldn’t shed in bankruptcy: a power plant.As Brookfield US Holdings LLC takes over the beachfront property, energy challenges abound. It wasn’t just Revel’s monthly utility bill, about $1.25 million on average, that weighed the business down; it was also the cost of building the casino’s personal power plant ...After spending about $42 million to build the plant, cash-starved Revel turned to ACR Energy Partners LLC to finish the job.ACR did that with about $158 million in financing, some of which was also used to repay Revel’s initial investment. Municipal bonds issued by the state Economic Development Authority covered about 75 percent of construction costs. Under Revel’s 20-year energy deal with ACR, Revel agreed to pay back the construction costs with interest — 11.67 percent annually for the bonds, and 15 to 18 percent for ACR’s equity investment.That meant Revel was saddled with more than $1.5 million in monthly power-plant financing fees before it paid one cent for any actual energy used."
http://www.pressofatlanticcity.com/business/energy-costs-helped-weigh-down-revel/article_2d4c4f24-58b1-11e4-b0b9-fbffc0673d60.html
"It’s the millstone that Revel Casino Hotel couldn’t shed in bankruptcy: a power plant.As Brookfield US Holdings LLC takes over the beachfront property, energy challenges abound. It wasn’t just Revel’s monthly utility bill, about $1.25 million on average, that weighed the business down; it was also the cost of building the casino’s personal power plant ...After spending about $42 million to build the plant, cash-starved Revel turned to ACR Energy Partners LLC to finish the job.ACR did that with about $158 million in financing, some of which was also used to repay Revel’s initial investment. Municipal bonds issued by the state Economic Development Authority covered about 75 percent of construction costs. Under Revel’s 20-year energy deal with ACR, Revel agreed to pay back the construction costs with interest — 11.67 percent annually for the bonds, and 15 to 18 percent for ACR’s equity investment.That meant Revel was saddled with more than $1.5 million in monthly power-plant financing fees before it paid one cent for any actual energy used."
http://www.pressofatlanticcity.com/business/energy-costs-helped-weigh-down-revel/article_2d4c4f24-58b1-11e4-b0b9-fbffc0673d60.html
November 6th, 2014 at 11:53:29 PM
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Quote: dave12038457Revel? Who knows if it can turn a profit or not.
Revel reminds me of a local diner that
went belly up in 2008 after the crash.
Since then it's changed hands 4 times,
each buying the contents cheaper than
the last, and all going broke. Now there's
a micro brewery there, about to open,
about to get a lesson.
"It's not called gambling if the math is on your side."
November 10th, 2014 at 8:47:23 AM
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Any word on the new owner/operators of the Revel and their time frame to re-open. I had heard a very hard to believe rumor of New Years Day. But that seems impossible to believe. Google has doesn't seem to have much new information...damn internet. Back to surfing for porn I guess.
November 10th, 2014 at 9:27:11 AM
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As far as I know, the sale has not actually "closed" yet. BK sales take way longer.
Also, Brookfield has to name a casino operator & the operator must apply for a NJ licence.
I heard it may reopen spring, may be late spring with redesigns?
Brookfield Property Partners' (BPY) CEO Ric Clark on Q3 2014 Results - Earnings Call Transcript
Nov. 7, 2014
"we signed an agreement to acquire the Revel Resort & Casino in Atlantic City, New Jersey through an auction process following the shuttering of the property earlier this year. We submitted the winning bid at $110 million on a property that was completed just two years ago at a cost of around $2.5 billion. This was a unique opportunity to acquire a brand new first-class property situated in a destination city at a substantial discount to replacement cost. We see synergies with other resort/casino investments that we’ve made in the past, notably Atlantis in the Bahamas and the Hard Rock Hotel and Casino in Las Vegas, and we plan to leverage these operations to maximize the value of our investment in Revel.
Since the Revel transaction is an operational turnaround of an entity going through a complicated bankruptcy proceeding, we will partner with Brookfield’s private equity group, which has substantial expertise in executing this type of investment."
Also, Brookfield has to name a casino operator & the operator must apply for a NJ licence.
I heard it may reopen spring, may be late spring with redesigns?
Brookfield Property Partners' (BPY) CEO Ric Clark on Q3 2014 Results - Earnings Call Transcript
Nov. 7, 2014
"we signed an agreement to acquire the Revel Resort & Casino in Atlantic City, New Jersey through an auction process following the shuttering of the property earlier this year. We submitted the winning bid at $110 million on a property that was completed just two years ago at a cost of around $2.5 billion. This was a unique opportunity to acquire a brand new first-class property situated in a destination city at a substantial discount to replacement cost. We see synergies with other resort/casino investments that we’ve made in the past, notably Atlantis in the Bahamas and the Hard Rock Hotel and Casino in Las Vegas, and we plan to leverage these operations to maximize the value of our investment in Revel.
Since the Revel transaction is an operational turnaround of an entity going through a complicated bankruptcy proceeding, we will partner with Brookfield’s private equity group, which has substantial expertise in executing this type of investment."
November 13th, 2014 at 7:18:24 AM
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New Revel casino owners plan $200 million in renovations, opening "next year" -sometime?
http://www.intergameonline.com/casino/news/12563/revel-to-reopen-next-year
http://www.intergameonline.com/casino/news/12563/revel-to-reopen-next-year
November 14th, 2014 at 4:53:57 PM
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They are doing the right thing. The state knows that investing any money to save the casino will only delay the inevitable just like what happened at the Revel. Someone might pick it up on the cheap to just run it as a hotel during the Summer. Though with so few casinos on the Boardwalk I think most visitors just come down for the day to use the beach. AC had a sweet monopoly, no pun intended with casino gaming for many years. The collapse happened fast. Sugarhouse is fighting tooth and nail to prevent another casino in Philadelphia but city is hell bent on awarding a second license. There is nothing left of the pie. Even Foxwoods and Mohegan Sun are in serious trouble. When those casinos opened they looked like perpetual money machines. A lot of the Wall Street guys called this prediction to a T as far as Atlantic City. They knew these casinos were closing 12 months ago.
November 19th, 2014 at 3:18:42 PM
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BREAKING NEWS: Brookfield Holdings has pulled out of Revel deal due over disagreement with bondholders over debt restructuring. Straub still interested. This is just an unmitigated disaster for the Revel. Straub has all these crazy ideas and the casino was only going to be a small part of the Revel. So essentially Brookfield is walking away after offering to pay $110 million dollars for a $2 billion dollar property.
November 19th, 2014 at 3:27:05 PM
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Quote: JackStraw8004BREAKING NEWS: Brookfield Holdings has pulled out of Revel deal due over disagreement with bondholders over debt restructuring. Straub still interested. This is just an unmitigated disaster for the Revel. Straub has all these crazy ideas and the casino was only going to be a small part of the Revel. So essentially Brookfield is walking away after offering to pay $110 million dollars for a $2 billion dollar property.
http://www.pressofatlanticcity.com/news/brookfield-bails-on-revel-deal/article_ea73ae16-703b-11e4-818f-57dc6d510c64.html
Press of AC Link. Looks like the whole electric issue is still there for whoever ends up with it.
November 19th, 2014 at 3:29:18 PM
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Quote: JackStraw8004BREAKING NEWS: Brookfield Holdings has pulled out of Revel deal due over disagreement with bondholders over debt restructuring. Straub still interested. This is just an unmitigated disaster for the Revel. Straub has all these crazy ideas and the casino was only going to be a small part of the Revel. So essentially Brookfield is walking away after offering to pay $110 million dollars for a $2 billion dollar property.
WOW!
"Brookfield spokesman Melissa Coley tells the newspaper that the decision stems from a disagreement with bondholders controlling debt related to Revel's power plant."
I don't think that was the only issue-they also just took a beating negotiating with Tony Soprano... uh I mean, AC property tax officials "The $37 million due from Revel this year accounts for about 18 percent of the city’s budget". - maybe they thought they would be treated as saviors & showered with tax breaks- got their knee caps broken instead - welcome to NJ
By any chance,does a guy with the initials K.D. own a piece of that ridiculous power plant?
http://www.therepublic.com/view/story/254dff03523c4a54aeeededc6cfc33b3/NJ--Revel-Sale
November 19th, 2014 at 3:45:37 PM
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"Straub's $95.4 million offer was the backup bid. The developer said his interest in the property remains high."
Has trading been halted yet on public cos. that provide staffing of Geniuses?
Poor AC.
Straub is going to make Kevin D look like Warren Buffet.
At least it will be entertaining.
Has trading been halted yet on public cos. that provide staffing of Geniuses?
Poor AC.
Straub is going to make Kevin D look like Warren Buffet.
At least it will be entertaining.
November 19th, 2014 at 3:55:51 PM
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damn...
November 19th, 2014 at 4:57:11 PM
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It's going to be hilarious to see what becomes of that building.
Has anyone considered turning it into a magical chocolate factory staffed by orange midgets?
Has anyone considered turning it into a magical chocolate factory staffed by orange midgets?
November 19th, 2014 at 5:17:43 PM
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There's got to be more to this. Brookfield has an omlette on their face. Reputations matter & cold feet are toxic in their world.
Who would want to do a future deal with a co. that is blaming their own lack of due diligence, ie,ascertaining a utility cost, and/ or committing a multi-million $ deposit bid -assuming the power plant would cave to your price?
A 21 year old buying their 1st starter house, or renting an apartment, knows enough to verify utility bills before making a deposit.
They also just figured out that the renovations they want to straighten out Revels design cost 2x their purchase price- are they having liquidity problems & there really was no legit Revel bidder ?
-they have this looming .
(note "BREF" is the operating co of Brookfield that Operates Hard Rock Vegas)
Owner of Troubled Las Vegas Hard Rock Hotel & Casino in Talks with Lender
If Bref HR misses the Dec. 15 due date, it may have to repay the full $997.5M loan or face the hotel’s foreclosure
http://www.themiddlemarket.com/news/turnaround-tuesday-las-vegas-hard-rock-casino-aims-to-avoid-foreclosure-247006-1.html
Who would want to do a future deal with a co. that is blaming their own lack of due diligence, ie,ascertaining a utility cost, and/ or committing a multi-million $ deposit bid -assuming the power plant would cave to your price?
A 21 year old buying their 1st starter house, or renting an apartment, knows enough to verify utility bills before making a deposit.
They also just figured out that the renovations they want to straighten out Revels design cost 2x their purchase price- are they having liquidity problems & there really was no legit Revel bidder ?
-they have this looming .
(note "BREF" is the operating co of Brookfield that Operates Hard Rock Vegas)
Owner of Troubled Las Vegas Hard Rock Hotel & Casino in Talks with Lender
If Bref HR misses the Dec. 15 due date, it may have to repay the full $997.5M loan or face the hotel’s foreclosure
http://www.themiddlemarket.com/news/turnaround-tuesday-las-vegas-hard-rock-casino-aims-to-avoid-foreclosure-247006-1.html
November 19th, 2014 at 5:36:26 PM
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So if no legitimate bidder other than the Fruit Loops "Straub" is interested in the Revel you think Icahn is going to respond to the picketers on the Boardwalk to save the Taj. Icahn is going to stay silent let the smoke clear and try to pick up the Revel. Why sink $175 million into the Taj when he can snatch the Revel for $110 million. They will invalidate Straub's claim and Icahn will throw him some go away and get lost money.
November 19th, 2014 at 5:44:44 PM
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Quote: JackStraw8004So if no legitimate bidder other than the Fruit Loops "Straub" is interested in the Revel you think Icahn is going to respond to the picketers on the Boardwalk to save the Taj. Icahn is going to stay silent let the smoke clear and try to pick up the Revel. Why sink $175 million into the Taj when he can snatch the Revel for $110 million. They will invalidate Straub's claim and Icahn will throw him some go away and get lost money.
I got nothin at this point.
If I were the AC Mayor - you could not pay me enough to deal with Icahn, unions & now 1/5 of my remaining depleted tax base, up in flames.
I'd pull the rouge Jetblue flight attendant routine at this point.
Grab a couple of beers, open the emergency exit door, high atop city hall, activate the emergency slide, & run.
I'd realize there is no slide, then I would jump.
November 19th, 2014 at 7:49:08 PM
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more details Revel's energy costs:
I find it hard to believe ACR would not cut a deal- what's their options?
"Revel started building the power plant in September 2008, but the casino's original owners ran out of money and halted all construction in June 2010. When ACR took over the utility project in 2011, it recognized that Revel was a risky proposition and demanded a 15 percent return on its equity in the first five years and 18 percent after that.In all, Revel's agreement with ACR called for fixed debt and equity payments to ACR totaling $20.1 million annually, plus $4 million annually for operations and maintenance.
By contrast, Borgata, including the Water Club - with twice as many hotel rooms and a larger casino floor - had fixed payments of $11.7 million last year for its utility plant.
Without a deal to reduce the fixed costs of the energy plant, Brookfield apparently decided the deal wasn't tenable."
Read more at http://www.philly.com/philly/business/20141120_Revel_casino_buyer_backs_out_of_deal.html#rRdu13GlwwcXUEgH.99
I find it hard to believe ACR would not cut a deal- what's their options?
"Revel started building the power plant in September 2008, but the casino's original owners ran out of money and halted all construction in June 2010. When ACR took over the utility project in 2011, it recognized that Revel was a risky proposition and demanded a 15 percent return on its equity in the first five years and 18 percent after that.In all, Revel's agreement with ACR called for fixed debt and equity payments to ACR totaling $20.1 million annually, plus $4 million annually for operations and maintenance.
By contrast, Borgata, including the Water Club - with twice as many hotel rooms and a larger casino floor - had fixed payments of $11.7 million last year for its utility plant.
Without a deal to reduce the fixed costs of the energy plant, Brookfield apparently decided the deal wasn't tenable."
Read more at http://www.philly.com/philly/business/20141120_Revel_casino_buyer_backs_out_of_deal.html#rRdu13GlwwcXUEgH.99
November 19th, 2014 at 8:39:45 PM
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ACR's in the position of power here. Whoever buys the property has to get their electricity from them.
November 19th, 2014 at 9:41:19 PM
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Something is kerflooey here. For the Torontonians, $110 million covers the morning coffee. The bondholders typically get screwed in bankruptcies. Cf. General Motors.Quote: JackStraw8004BREAKING NEWS: Brookfield Holdings has pulled out of Revel deal due over disagreement with bondholders over debt restructuring. Straub still interested. . . . So essentially Brookfield is walking away after offering to pay $110 million dollars for a $2 billion dollar property.
November 20th, 2014 at 4:33:29 AM
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Quote: BozThe damage is already done and he would almost have to run it as a start-up new casinos to try and draw customers back with new promotions and such.
I think two things are under the radar here in regards to the Taj and Carl Icahn:
1. Icahn may feel that shutting down the Taj...and remodeling/reopening as another brand may actually work better. He's probably right. So he's making all these crazy demands in an effort to make this happen. If he could break the union/get huge concessions from the city/state, he could then try to apply them to the Trop and or the Plaza. Then he takes complete control and does what he wants. I was there last weekend and you could practically see the tumbleweeds blowing through the place. Starting fresh is probably the only viable option at this point. They've chased away so many of their customers.
2. This other property he bought is an old house right near the old Trump Plaza that the Donald try to buy unsuccessfully for years. It wasn't a lot of money either around 500K as I recall. But the old lady who owned it would never sell until now. Why would he buy property if he's planning on rolling out of town? Any chance he might try to snatch up the Plaza in this deal as well? Both properties are owned by Trump Entertainment. So maybe he could get both in the bankruptcy somehow. Combined with the Tropicanna which he already controls. It's an interesting idea.
November 20th, 2014 at 4:36:37 AM
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Quote: sc15ACR's in the position of power here. Whoever buys the property has to get their electricity from them.
That's true. But right now they are generating zero dollars from the property. They must have substantial carrying costs. Wouldn't all most any deal that at least covers their cost be better than that?
Hard to believe a 2.4 dollar property could get so fudged up over the damn light bill.
November 20th, 2014 at 11:30:48 AM
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Local paper says Toronto-based Brookfield /Revel deal not completely dead
"Brookfield Property Partners LP is threatening to walk away from its planned purchase of shuttered Revel Casino in Atlantic City, N.J., over the staggering costs of just powering the massive complex.The move — characterized by one insider as “not a definitive we’re gone forever”
http://www.thestar.com/business/2014/11/20/torontos_brookfield_drops_plan_to_buy_revel_casino_in_atlantic_city.html
"Brookfield Property Partners LP is threatening to walk away from its planned purchase of shuttered Revel Casino in Atlantic City, N.J., over the staggering costs of just powering the massive complex.The move — characterized by one insider as “not a definitive we’re gone forever”
http://www.thestar.com/business/2014/11/20/torontos_brookfield_drops_plan_to_buy_revel_casino_in_atlantic_city.html
November 20th, 2014 at 12:43:12 PM
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Quote: vendman1That's true. But right now they are generating zero dollars from the property. They must have substantial carrying costs. Wouldn't all most any deal that at least covers their cost be better than that?
Hard to believe a 2.4 dollar property could get so fudged up over the damn light bill.
The f$%^ ups on revel go way beyond the power bill.
Let's put it this way.. Buying revel is like getting a really nice looking hooker who's charging very little.. But as soon as the clothes come off there's some pretty nasty surprises..
November 20th, 2014 at 2:26:51 PM
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Quote: sc15The f$%^ ups on revel go way beyond the power bill.
Let's put it this way.. Buying revel is like getting a really nice looking hooker who's charging very little.. But as soon as the clothes come off there's some pretty nasty surprises..
That gave me a rare LOL moment. Agreed. The power generation plant thing has amazed me from the beginning. Did nobody crunch a single number on this thing? They could have just bought power off the grid for half of what they were paying. Astonishing.
November 20th, 2014 at 8:10:56 PM
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Quote: sc15The f&*$ ups on revel go way beyond the power bill.
Let's put it this way.. Buying revel is like getting a really nice looking hooker who's charging very little.. But as soon as the clothes come off there's some pretty nasty surprises..
sc15. Last warning; this board is PG - mask your swears (as above). Thank you.
If the House lost every hand, they wouldn't deal the game.
November 20th, 2014 at 9:00:44 PM
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Quote: vendman1That gave me a rare LOL moment. Agreed. The power generation plant thing has amazed me from the beginning. Did nobody crunch a single number on this thing? They could have just bought power off the grid for half of what they were paying. Astonishing.
Why crunch numbers when your new megaresort is going to attract high paying tourists from around the world? You can pay for anything with that kind of revenue.
Um, for the swear thing, why does the board not auto-filter/mask it if it's not allowed?
November 24th, 2014 at 9:45:18 AM
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Revel Looks to Salvage Sale to Brookfield
"Lawyers representing Atlantic City, N.J.’s Revel Casino Hotel will meet with a handful of its creditors on Monday to try to salvage a deal to sell the shuttered boardwalk resort to a Canadian private-equity firm. "
from WSJ blog
"Lawyers representing Atlantic City, N.J.’s Revel Casino Hotel will meet with a handful of its creditors on Monday to try to salvage a deal to sell the shuttered boardwalk resort to a Canadian private-equity firm. "
from WSJ blog
November 26th, 2014 at 4:24:50 PM
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Why do they need to renovate revel? They JUST built the place, it's brand new.
November 26th, 2014 at 4:34:27 PM
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Quote: sc15Why do they need to renovate revel? They JUST built the place, it's brand new.
The escalators are not popular and considered dangerous and scary by many. Just a wild guess.
Many people, especially ignorant people, want to punish you for speaking the truth. - Mahatma Ghandi
November 26th, 2014 at 4:38:17 PM
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Quote: 1BBThe escalators are not popular and considered dangerous and scary by many. Just a wild guess.
but still, 200 million?
The golden nugget, which was a total craphole costed 150 million to renovate total.
Revel's brand new, it doesn't need a total overhaul.
November 26th, 2014 at 4:53:21 PM
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Quote: sc15but still, 200 million?
The golden nugget, which was a total craphole costed 150 million to renovate total.
Revel's brand new, it doesn't need a total overhaul.
I'm even more curious as to what Brookfield had in mind re Revel renovations -at a cost of twice what they bid for it.
One guess might be that is the amount of $ it would take to move the Casino & hotel lobby to the ground floor at Boardwalk level?
this architect Revel thinks could be fixed on the cheap:
"Casino architect believes fixing Revel not difficult
Some of the complaints about Revel - which wowed visitors with its upper-story views but left them unimpressed on the way up - center on access to the casino floor, both for guests driving to valet parking and for hotel guests after they check in. Grumbling about the casino's being on an upper floor, rather than at street level, could be resolved by moving the main drop-off point for cars into the garage, though "some of the most successful casinos in the world have their main gaming floor on the upper floors," Steelman said...
The hotel has another casino-access problem, Steelman said: "You can't get into your hotel elevator and press a button that says 'casino.' It's a button that says 'lobby.' "Guests must get off the elevator in the lobby and trek to the escalator or another set of elevators to get to the casino."That is a problem - you have to fix that," Steelman said. "Those elevator shafts, I guarantee you, go down to the casino." Steelman, who is the architect for Bart Blatstein's proposed Provence in Philadelphia, said he tries to avoid such disjointedness in his casinos, especially for high rollers."The car, the lobby, the elevator, everything is very connected," he said. Outside, Steelman would crack open Revel's walls along the Boardwalk."
http://articles.philly.com/2014-10-10/business/54832390_1_revel-casino-hotel-casino-operator-atlantic-city
November 26th, 2014 at 5:03:37 PM
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Quote: sc15but still, 200 million?
The golden nugget, which was a total craphole costed 150 million to renovate total.
Revel's brand new, it doesn't need a total overhaul.
I don't think that is a lot of money for a project that size. People regularly invest major money. A lot of could be going to backroom stuff.
November 28th, 2014 at 11:09:43 AM
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Quote: sc15but still, 200 million?
The golden nugget, which was a total craphole costed 150 million to renovate total.
Revel's brand new, it doesn't need a total overhaul.
I assumed the 200mil included the cost of finishing the 1/3 of the hotel rooms which were never finished. Still it does seem like a lot for a brand new property.
November 28th, 2014 at 12:32:52 PM
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I do not see how they could make the casino on the boardwalk level…there is no there, there. It is outdoor space mostly. I liked the upper level casino placement.
