If nothing else gets recalcitrant legislators off their duffs and behind Gov. Chris Christie‘s intervention on behalf of Atlantic City, maybe these numbers will. In the last quarter, only four casinos turned a profit. Harrah’s Entertainment‘s Showboat and Harrah’s Marina properties were slightly ahead of break-even, Tropicana Atlantic City booked a nice, $4.5 million profit and Borgata made out like a bandit (+$17 million). Yes, that means both Caesars Atlantic City and Bally’s Wild Wild West posted losses, as did all the Trump Entertainment Resorts casinos.
Biggest loser, however, was Colony Capital‘s debt-encrusted Atlantic City Hilton (above), -$13 million, even though two other casinos took in less net revenue. When running a casino in Atlantic City is becoming a money-losing proposition, Christie’s rhetoric about potentially presiding over the Boardwalk’s demise is more prescient than hyperbolic. In the meantime, nobody seems to have a plan for monetizing the city’s beloved albatross, Bader Field. There was a time that Penn National Gaming was offering $800 million for it (mainly as a real estate play), but the company should count itself lucky the deal went south. Otherwise, it might be look at a $3oo million or greater writedown and a whole lotta buyers’ remorse.
Don’t say Sam Nazarian never did anything with the Sahara. No, he restructured its debt. He may have the magic touch in other markets but Nazarian’s Vegas foothold never made great sense. People who want to own “boutique-y, luxury type of hotels” don’t buy the Sahara, neither as an asset nor for its location. Nazarian just doesn’t seem the right owner for the bargain-conscious Sahara and it seems a poor fit for his portfolio, too.
