AC Hilton Said to Be on Last Legs
August 13th, 2011 at 6:13:00 AM
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With no buyers emerging, Atlantic City Hilton Casino Resort could soon close
By DONALD WITTKOWSKI Staff Writer | Posted: Friday, August 12, 2011 7:30 pm
ATLANTIC CITY First, it lost the right to use the iconic Hilton name. Now, it seems no one wants to buy Atlantic Citys smallest casino not even at a bargain price.
Unless a new owner comes to the rescue, gaming analysts predict the Atlantic City Hilton Casino Resort may not be able to hang on much longer. Andrew Zarnett, who tracks the casino industry for Deutsche Bank, doubts the Hilton can be saved. The casinos multimillion-dollar losses and Atlantic Citys shrinking marketplace likely will force it out of business, he believes.
It can survive for a time, but not for a long time, Zarnett said bluntly.
Bradford Smith, a New Jersey gaming consultant and former chairman of the state Casino Control Commission, also thinks the Hiltons future is bleak unless a new buyer revitalizes it. It will take a lot of work, Smith said. It is a difficult situation.
The Hilton has been unable to find a buyer since it went on the market months ago. Lenders led by the U.S. National Bank Association put foreclosure proceedings on hold in January after reaching agreement with Hilton owner Colony Capital LLC to sell the Boardwalk property.
The sale has been complicated by the recent decision by Hilton Hotels & Resorts to sever ties with the casino, meaning the Hilton brand will be stripped off the building. Hilton Hotels confirmed in June that it had ended a licensing agreement that allowed the casino to use the Hilton name. Hilton Hotels did not divulge the reason for the move other than to say that it wanted to protect our name and identity.
For the time being, the Hilton moniker is off the slot machines, but remains on the casino hotel and its table games. It will have to come off those eventually. Already, the Hilton has begun referring to itself as ACH an acronym for Atlantic City Hilton on its website, show tickets and promotional literature. Calls to the casino are answered with the greeting ACH. When asked for clarification, casino spokeswoman Tina Belluscio said in an email that the Atlantic City Hilton Casino Resort remains the formal name until further notice.--Atlantic City Press
By DONALD WITTKOWSKI Staff Writer | Posted: Friday, August 12, 2011 7:30 pm
ATLANTIC CITY First, it lost the right to use the iconic Hilton name. Now, it seems no one wants to buy Atlantic Citys smallest casino not even at a bargain price.
Unless a new owner comes to the rescue, gaming analysts predict the Atlantic City Hilton Casino Resort may not be able to hang on much longer. Andrew Zarnett, who tracks the casino industry for Deutsche Bank, doubts the Hilton can be saved. The casinos multimillion-dollar losses and Atlantic Citys shrinking marketplace likely will force it out of business, he believes.
It can survive for a time, but not for a long time, Zarnett said bluntly.
Bradford Smith, a New Jersey gaming consultant and former chairman of the state Casino Control Commission, also thinks the Hiltons future is bleak unless a new buyer revitalizes it. It will take a lot of work, Smith said. It is a difficult situation.
The Hilton has been unable to find a buyer since it went on the market months ago. Lenders led by the U.S. National Bank Association put foreclosure proceedings on hold in January after reaching agreement with Hilton owner Colony Capital LLC to sell the Boardwalk property.
The sale has been complicated by the recent decision by Hilton Hotels & Resorts to sever ties with the casino, meaning the Hilton brand will be stripped off the building. Hilton Hotels confirmed in June that it had ended a licensing agreement that allowed the casino to use the Hilton name. Hilton Hotels did not divulge the reason for the move other than to say that it wanted to protect our name and identity.
For the time being, the Hilton moniker is off the slot machines, but remains on the casino hotel and its table games. It will have to come off those eventually. Already, the Hilton has begun referring to itself as ACH an acronym for Atlantic City Hilton on its website, show tickets and promotional literature. Calls to the casino are answered with the greeting ACH. When asked for clarification, casino spokeswoman Tina Belluscio said in an email that the Atlantic City Hilton Casino Resort remains the formal name until further notice.--Atlantic City Press
August 13th, 2011 at 6:35:50 AM
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Quote: SanchoPanzaNow, it seems no one wants to buy Atlantic Citys smallest casino not even at a bargain price.
The Trump Plaza (TP) is doing even worse than Atlantic City Hilton. For 2011 the TP is the smallest casino in Atlantic City.
It's difficult to believe that AC has made it this far without closing one or two of their casinos. The business is unrelenting in falling month after month.
Similar to downtown Las Vegas, revenue began falling before the recession. The day that the racinos in Philadelphia opened for business (first full month was January 2007), the Atlantic city business began dropping.
Golden Nugget was formerly in negotiations to buy the ACH,which used to be a Golden Nugget property when it opened. They decided they had a better chance of turning around the Trump Marina.
August 13th, 2011 at 7:52:15 AM
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I was under the impression that GN really wanted the Hilton, to restore it to it's original name, etc. But, at the time, the Hilton wouldn't sell (or wanted too much).Quote: pacomartinGolden Nugget was formerly in negotiations to buy the ACH,which used to be a Golden Nugget property when it opened. They decided they had a better chance of turning around the Trump Marina.
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? 😁
August 13th, 2011 at 8:12:36 AM
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They had problems, and identity problems, long before the recession. We were going to AC for 8 years before we found out that there was actually a casino in that building. We thought all along that it was just a Hilton hotel.
A falling knife has no handle.
August 13th, 2011 at 1:32:27 PM
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Some Atlantic City Casinos may close was an article dated 16 months ago.
Atlantic City's 11 casinos have been struggling for more than three years. Financial documents filed with the state of New Jersey this week show just how bad things have gotten.The news was worst for the two casinos believed to be the most endangered: Resorts Atlantic City, which was taken over by its lenders in December, and the Atlantic City Hilton Casino Resort, which defaulted on its mortgage in July and could be headed for the same fate.
Maybe Carl Icahn has done it again. Without any competition from ACH, then the Tropicana may grow into a more solid investment servicing all those hotels at that end of town.
Atlantic City's 11 casinos have been struggling for more than three years. Financial documents filed with the state of New Jersey this week show just how bad things have gotten.The news was worst for the two casinos believed to be the most endangered: Resorts Atlantic City, which was taken over by its lenders in December, and the Atlantic City Hilton Casino Resort, which defaulted on its mortgage in July and could be headed for the same fate.
Maybe Carl Icahn has done it again. Without any competition from ACH, then the Tropicana may grow into a more solid investment servicing all those hotels at that end of town.
