What’s an Atlantic City casino worth? Not too bloody much, especially if the name of Donald Trump is emblazoned across the façade. Trump Entertainment Resorts has parted with unloved, unremunerative Trump Plaza and truly for a pittance — $20 million. This is the most rock-bottom resale price yet recorded for an Atlantic City gambling hall. That’s less than one-tenth of the hotel-casino’s construction cost … unadjusted for 28 years of inflation! The purchaser, Meruelo Group, is known to players in the Reno area, where it owns the Grand Sierra Resort. (Any thoughts, readers?) Meruelo paid $22K/key for the smallish hotel. It chose a good moment to swoop: The Plaza was coming off a catastrophic January, in which revenue fell 41%, to a truly pathetic $4.9 million. There was a time not so long ago that a $10 million monthly gross was a cause for shame along the Boardwalk.
By severing the Plaza from TER, Meruelo is rid of the poisonous Trump brand name. The Golden Nugget continues to flourish without it, having recorded 
flat year/year revenue last month. On an unrelated note, Colony Capital‘s repositioning of the Atlantic Club as a grind joint continues to be a hit with players, as revenues rose 15%, to $9 million, in an otherwise dreadful January for the city. The Tropicana performed respectably, off only 3%, but Revel offered the usual dreck, raking in but $8 million. In a totally unsurprising move, Revel is reported to be dickering with Chapter 11 specialists. At least we know, thanks to the Wall Street Journal, why CEO Kevin DeSanctis (left) — the man who opened Revel with no smoking areas and no buffet (!) — still has a job. He’s the lead investors’ fair-haired boy. So DeSanctis will be able to continue tinkering around the edges and making empty promises to his heart’s content. But hey, Atlantic City has Miss America back in town. That’s something to celebrate, right?
Well, if Meruelo wants to get the Plaza back on track they could start by closing the Boardwalk entrance in sections or rip off the hideously ugly concrete. The damn place looks like a Soviet bunker.
If Christie legalizes internet gambling for NJ residents like he says he wants to, I would think that Meruelo got a bargain.
And it may look like PokerStars overpaid for the Atlantic Club, whenever that purchase price is disclosed. It will be interesting to see who Meruelo taps to operate the Plaza.
Steve Wynn wouldn’t sell his basement for 20 million dollars. Of course the “Donald” congratulated himself – by saying. “He got out early,” when things began to turn in A.C. Meaning he only owned 10% of the Plaza. The 20 million is supposed to go towards lowering their debt. The man is incapable of admitting his failures. Question: Did the “Donald” ever pay off the contractors that finished the “TAJ”?????
Not long ago – a friend went into the ‘plaza’ to play poker. He said the poker room was a disgrace. Torn chairs, etc. He never played – just left. How can you run a business that way – DONALD?????
To think that Trump Plaza was once one of the HIGHEST grossing casinos in the market. Once the Taj opened, Donald gave up on the Plaza and Marina. It’s too bad. Both the Plaza and Marina have A+ locations and with a little TLC (Golden Nugget) they can prove their ultimate worth. I guess that’s what Meruelo sees in the Plaza, much like Ferittta saw in the Marina.
It baffles me that Hard Rock did not go hard for this one. With Convention Hall next door and expandable land, it could have been a real winner for them. Personally, I think the facility is functionally obsolete (stacked floor plan) compared to modern day resorts. I guess the Seminoles thought the same thing.
Dick, I do not believe that the Taj contractors were ever paid off. Also, the Donald did just fine in A.C. He mortgaged the hotels to pay off his real estate debt and then sold them to the publicly traded company for above-market prices. He never lost a thing in A.C. … just everyone that did business with him. Art of the Steal!
Thank you – American Gaming Guru. The ‘Donald,’ does come first, last & in between. Very, very smart for himself. And never worries about leaving prisoners. I’m just curious – how many lawsuits or threatened lawsuits has the ‘Donald’, been involved in – in the last 5 – 10 years? It might break the record. And the ‘TRUMP’ building on the Strip has no gambling. Wow – in a gambling town.
Strangely, Trump asked for — and got — a Nevada gaming license when he briefly owned a piece of the Riviera. But building a non-gaming condo-hotel on the Strip? I could never figure out that move.
Dave, my only thought would be (on Trump LV) was due to his relationship with Ruffin that he might have had a piece of Ruffin’s previously planned place? Not really sure either.
But then again … it’s all Ego. Probably just to boast that he has one.
Does anyone remember that the ‘DONALD’ was fined by the Gaming Commission in NJ when he was caught backing the home owners association to try to stop the tunnel Steve Wynn wanted to build, in A.C. . Which eventually led to ‘BORGATA’. RE: Meruelo. I feel he may have said – If I can steal the PLAZA @ 40 million, I will do it. But I will put in an offer of 20 MIL, and be firm. So – low and behold. He did & got it. ANY THOUGHTS??????
One more thought for today. If the ‘DONALD’ was asked – Who are the two people living that are smarter than you. His response would probably be – NO ONE. If he was asked for ONE person. he would probably say: You are looking at him…..Just my thought.