- Moody’s reveals $375 million investment plan
- Boardwalk casino has been closed for three years
The Revel Casino Hotel in Atlantic City finally has a buyer, Moody’s Investor Service has confirmed, as a Colorado company put forward their $375 million plan to get the property open again.
— Wayne Parry (@WayneParryAC) December 11, 2017
The glitzy gambling venue has been closed since 2014, despite failed efforts by developer Glenn Straub to turn around the ailing venue and resume operations.
Straub has always denied rumors that the Revel would be sold.
AC Ocean Walk LLC are expected to pay just $200 million for the property, which cost $2.6 billion to develop.
Straub himself picked up the Revel for just $82 million following its bankruptcy and closure – but the businessman has spent far more on trying to reopen the property since then.
There is still no official confirmation that the property has sold, or is set to be sold.
Reached out to Glenn Straub and left a message with him, waiting for him to call back. https://t.co/RGdXOYEAoO
— Nicholas Huba (@ACPressHuba) December 11, 2017
Revel could reopen by May 2018
Along with the $200 million sale price, AC Ocean Walk is expected to invest a further $175 million into the casino site.
This will include a full renovation and potentially a rebrand. The building itself has the necessary infrastructure to open quickly, with almost 1400 hotel rooms, thirteen restaurants and three nightclubs – plus a huge gaming floor with 100 table games and 2,000 slot machines.
The building itself was only built in 2012 and had just two years where the doors were open for business, so the property and its interiors should be almost as good as new.
This should work in the buyer’s favor. In order to start making money back on their investment quickly, AC Ocean Walk wants to have the Revel back up and running by next May.
“The property is expected to slowly capture its fair share of the market given the quality of the property,” notes the Moody’s report on the proposed sale.
Casino industry recovering as investors eye Atlantic City
The Revel Casino Hotel has the potential to be a shining jewel on Atlantic City’s gaming boardwalk when it opened in 2012, but a struggling global economy and a decline in casino footfall saw several of the big gambling venues close over the following few years.
Now, economic recovery and sustainable development – plus a renewed interest in the casino and entertainment sector – are turning Atlantic City’s fortunes around.
A number of closed AC casinos have recently reached purchase deals, including Hard Rock’s plans to reopen the Trump Taj Mahal.
Investors are seeing the gambling hub as a viable place for development once more.
Gaming consultant Robert Ambrose sees this is a positive sign for Atlantic City: “Slowly as investors have begun their return to the city, the confidence in the financial markets will lend itself to even more development.”
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