Hard Rock in talks to buy troubled Revel Casino
1Hard Rock International is in deep talks to buy Atlantic City?s troubled Revel Casino, two sources close to the situation told The Post.
The 20-month-old money-losing Revel, which has been through a Chapter 11 bankruptcy reorganization this year, said last month it had hired Moelis & Co. to explore strategic alternatives.
It started looking for a buyer in June,?The Post reported exclusively?at the time.
Orlando, Fla.-based Hard Rock, whose eight casinos contribute to total corporate revenue of roughly $4 billion, has been looking to establish an Atlantic City presence.
In September 2012, it canceled a $460 million project to build Hard Rock Atlantic City due to poor market conditions.
The deal, if completed, would be a huge relief to New Jersey politicos. The seaside city has suffered from declining revenue for many years because of growing competition. A second casino, the Atlantic Club Casino hotel, the former Hilton, failed to find a buyer after two days of a bankruptcy court auction.
Morgan Stanley took a bath funding the construction of the Revel, and then turned it over to hedge-fund investors, which have been racking up losses.
In total, investors have lost more than $2 billion building and running the casino.
Hard Rock, if it reaches a deal to buy the 1,399-room Revel in the next several weeks, will likely shut it down for a renovation and a Hard Rock re-flagging , according to a source close to the matter.
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