Atlantic City’s $2.4 billion Revel Casino Hotel has been potentially sold for $110 million. The bankrupt casino was sold to Canadian firm Brookfield Asset Management. The winning bid bested Florida real estate developer Glenn Straub who offered $94 million for the failed casino and hotel.
Revel Casino and hotel opened in 2012 and closed its doors on September 2, 2014. The massive resort located on Atlantic City’s famed boardwalk, was meant to serve as the cities first Vegas-style resort. However, the restaurants mix of fine-dining and entertainment failed to attract attention from locals and visitors who are often bused into the city for cheap buffets and loose tables.
Had Straub won the bid, he planned to turn the location into a university. His goal was to attract the brightest minds in the world, while focusing on major social issues such as hunger.
Straub on Monday vowed to challenge any winning bids. The Florida real estate developer has complained that the auction process has lacked transparency.
Glenn could have another chance to bid on the Revel Casino and Resort. The current winning bid must still be approved by a bankruptcy court.
The hotel and casino’s closure was one of four to occur in 2014. Atlantic City has failed to attract new businesses and customers, despite efforts by Chris Christies and other members of local government who have poured hundreds of millions of dollars into the failing area. Also closed this year were Trump’s Taj Mahal, Atlantic Club, and the Showboat casino.
Brookfield, a global firm with headquarters in Toronto, also owns casinos in Las Vegas and the Bahamas.
If the Revel property re-opens as a casino, it will face increasing competition from neighboring states who have begun to approve casinos and new gambling laws in order to compete in the open market.
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