Hard Rock continues to keep a twinkling eye on a certain Atlantic City casino that has been mired in misery ever since it opened a little over two years ago. The Florida-based company’s interest in Revel Casino has been well documented but it wasn’t until recently that the interest was confirmed by a high-ranking Hard Rock executive.
Hard Rock president James Allen told attendees at the East Coast Gaming Congress that Hard Rock is interested in purchasing Revel, but only “if the price is right.”
Despite Revel’s status as the newest of the 11 Atlantic City casinos in operation, taking ownership of the joint comes with plenty of risks, not the least of which is the casino’s recent venture into bankruptcy court after just one year of operation. In addition to the significant debt Hard Rock would assume if it bought the beleaguered casino, Allen said the company would be forced to spend a lot of money just to make Revel more presentable to its customers. But he reiterated that Hard Rock is still very much interested in making a deal provided the “economics are right.”
Hard Rock doesn’t expect to pay a king’s ransom to buy Revel, considering it was just last month that casino union group Unite Here! suggested that Revel isn’t likely to achieve profitability until 2024, which is beyond comprehension considering the amount of hype it had when it first opened two years ago.
Revel’s current valuation of less than $100m, based solely on the hotel rooms and the land on which it stands, isn’t even five percent of the $2.4 billion spent on erecting the place in the first place.
Is that price right enough for you, Hard Rock?