That’s the message coming from top Revel Resort brass, who sent a letter to casino employees cautioning them that — unless the property can be sold by Aug. 18 — they all may be out of jobs: “If Revel is unable to complete such a sale promptly, Revel expects to close its entire facility.” That would make Revel, next to Fontainebleau, the biggest megaflop in casino history.
Revel’s owners, who obtained in a debt-for-equity swap, appear to be trying to shop it around for $300 million — at a time when Atlantic City casinos are going for a 20th of that. Hard Rock International and Caesars Entertainment have both hesitated to pull the trigger on a Revel purchase, and union Unite-Here, a longtime Revel adversary, pegs the value of the casino as low as $25 million and no higher than $73 million. (Its comparatively unused state would justify the upper end of the scale.) Hard Rock has definitively stated its interest — “if the price is right” — and desperation on the part of Revel might bring both parties to the table.
A textbook lesson in how not to run a casino, Revel now faces the danger of being the biggest tombstone on the Boardwalk, a chilling warning for anybody who would buy or build in the Atlantic City market.
What a disaster! and such a shame. Revel is a beautiful resort with a poorly designed casino. I really hope Hard Rock can rescue it.