Our long national nightmare is over. Trump Entertainment Resorts has finally unloaded that pariah known as Trump Marina and for a pittance: $38 million. Just when it looked like Trump couldn’t give the place away, Landry’s Restaurants CEO Tilman Fertitta swooped in and snatched it. A somewhat Pyrrhic victory for Trump is also a defeat for Colony Capital, which attempted to unload the heavily encumbered Atlantic City Hilton to Fertitta, who thought better of it.
That transaction would have made historical and sentimental sense, since the Hilton was once a Golden Nugget. And, yes, Fertitta is going to put the Nugget brand on Trump Marina. (Nicholas Ribis‘ apparent desire to rebrand the Hilton the “New Nugget” is not only hilariously anachronistic, it would probably run headfirst into a Fertitta lawsuit.) Casino pitchman Donald Trump put the best face on the sale he could but there’s no question that this particular ship sailed a long time ago. It’s “wonderful” only for Fertitta, although it means that Trump Taj Mahal now has to subsidize one money-bleeding casino (Trump Plaza) instead of two, so there’s a little upside for everybody (well, except Colony, as usual).
There’s also no reason to doubt Fertitta’s pledge to aggressively reinvest, far beyond the $50 million bandied about by all-hat/n0-cowboy suitor Richard Fields. He did that, in the face of skepticism, at downtown Vegas’ Golden Nugget and the result is a destination-quality property … something that Atlantic City desperately needs. Tilman (left) is also in the right neighborhood: Proximity to top performers Borgata and Harrah’s Marina could help him build critical mass around the Nugget-to-be (although said vicinity wasn’t any great assistance during the casino’s Trump-owned years).
Fertitta’s impatience to begin work might seem rash but, unlike some other companies, Landry’s ought to be a shoo-in with the New Jersey Casino Control Commission. If they want owners who are committed to maintain first-class properties, they’ve found the right man.
Who Are They Kidding Dept. Noteholders for the Hilton, meanwhile, have set sail for Never-Never Land. They’re seeking as much as $75 million for the oft-renamed casino. Seriously, after Trump Marina and Resorts Atlantic City changed hands for a combined $70 million, who’d think they could get as much or more for the Hilton all by its lonesome? Financier Houlihan Lokey‘s notion of the place’s value isn’t as delusional as was Colony CEO Tom Barrack‘s but it seems mighty darn optimistic.
Couple things here. It would have been fun to see the Hilton re-branded and brought back to life as the GN under Fertitta. I agree, Colony looses again. Also, Ribis is trying to buy the place personally; right? Same thing he claimed he was going to do with Resorts. Anyway, Fertitta is great for Trump Marina. I have always had a fondness for the property and its employees. Despite its rather bland exterior appearance, I think the interiors are rather nice. Yes a ton of work has to be done to bring it up to par, but Fertitta is definitely the man to do it. Trump Marina’s biggest flaw was being owned by Trump. It should be a solid performer and the only reason that it is not is because Trump failed to keep it up. This is a big win for AC and I am sure for Fertitta too. BTW, I have seen other reports and posts that essentially criticize Trump for selling the property for only $38 million. Lost on the minds of the writers is that Donald already sold the place years ago (personally) to his publically traded company for $500 million (if I remember correctly). He could care less what it sells for now. His pockets were lined by the sale of the place a long time ago. To think that Trump looses is a big understatement.
I was watching CNBC earlier today and they said Donald Trump might be interested in buying the New York Mets. It will be interesting to see how this plays out.
I walked through both the Marina and the AC Hilton yesterday. The Marina needs to be completely gutted and remodeled. The place is a dump.
In contrast, the AC Hilton is in excellent condition. The place looks like it just opened. The decision to choose the Marina over the Hilton had to come down to location.
I think they can make it work. It’s an easy walk to Harrah’s from the Marina. But I can’t see them completing the renovations without shutting down for some time.