Wednesday, September 24, 2014

Revel auction set for today



The Revel Casino Hotel is up for auction today.

Could it live once again as a casino? Or will an outside-the-box plan (like transforming it into a university) prevail? Developer Glenn Straub who made a $90 million bid for the property, said he hopes to create a "university for geniuses" in the expansive space. He says a school on the property would help to remake Atlantic City's image.

But today's auction could allow another buyer to exceed Straub's $90 million bid. If Straub loses out, the Revel owners owe him a $3 million breakup fee.


The Associated Press reports that Straub's lawyer, Stuart Moskovitz, said that there have been multiple offers on the property, but did not know who they were from or how many there are.

The Revel closed Sept. 2 after two years in operation and never becoming profitable.

While the future of the facility is still a mystery, one thing is crystal clear: The oceanfront, boardwalk property will be bought well below the $2.4 billion price tag it cost to build.

Revel: Timeline of a failed casino:

April 2006: Morgan Stanley pays $70 million for the South Inlet property on the Atlantic City Boardwalk next to the Showboat Casino Hotel.
April 2007: Construction begins.

July 31, 2008: A plane crash kills three Revel executives flying to a business meeting.

Nov. 11, 2009: Atlantic City Council votes to advance a plan for $150 million in state bonds to finance city infrastructure improvements related to Revel Entertainment Group's casino project.

March 2, 2011: Wall Street giant Morgan Stanley sells its stake in the Revel casino for $30 million to a group led by Kevin DeSanctis, CEO of Revel Entertainment Group. It suffered a $1.2 billion loss.

March 21, 2011: Revel begins hiring.

April 2, 2012: Revel opens.

May 25-27, 2012: Revel holds three nights of Beyoncé concerts, her first performances in more than a year.

Sept. 10, 2012: A man falls from one of Revel's soaring escalators, plummeting 40 feet.

Feb. 19, 2013: Revel announces it will file for bankruptcy. The move reduces its debt by more than $1 billion.

March 13, 2013: CEO DeSanctis is replaced by Jeffrey Hartmann.

June 20, 2013: Revel starts its "Gamblers Wanted" marketing campaign, likely an attempt to win back favor with gamblers that it neglected early on.

Aug. 9, 2013: Revel earns $23.4 million in total gaming revenue in July, up 33 percent.

Oct. 10, 2013: Hartmann leaves and is replaced by Scott Kreeger who becomes the new president and chief operating officer.

April 21, 2014: Revel is fined $37,500 for allowing self-excluded gamblers to make bets, failing to collect cards properly after a blackjack game and violating security rules.

July 31, 2014: News breaks that Revel executives could net millions in a sale of the casino.

July 20, 2014: Revel announces that it will close if it doesn't find a new buyer.

July 24, 2014: Atlantic City Mayor Don Guardian says Revel has six potential buyers.

Aug. 12, 2014: Revel announces that it will close Sept. 10. after it didn't get any qualified bidders.

Source: Philadelphia Business Journal

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