Trump Resorts Looking at Hotel Sale Opportunities
- Apr 07, 2008
Trump Entertainment Resorts is exploring opportunities to sell one or more of its casino hotel properties. A company statement said that Trump Entertainment Resorts is focused on operating and improving performance at all of its casino hotels, as well as completing the new tower at Trump Taj Mahal. “The company also looks at opportunities to sell one or more of its casino properties, and, from time to time, engages in discussions with third parties regarding proposals to acquire company properties,” the statement said. The statement said Trump Entertainment Resorts “is not party to any agreement to sell any of its casino properties.” Trump Entertainment Resorts. is the entity through which Donald Trump, chairman and the largest stockholder, conducts gaming activities, and is separate from his other real estate holdings. The company presently owns and operates three properties-Trump Taj Mahal Casino Resort; Trump Plaza Hotel and Casino; and Trump Marina Hotel Casino. The new tower at Trump Taj Mahal is expected to open with approximately 400 rooms on the first twenty floors in early September of this year. An estimated 100 rooms will be added each month, until all rooms are completed by the end of December of this year. The Casino Control Commission said that Taj Mahal’s gaming revenues were $508.5 million, in fifth place among Atlantic City’s 11 casinos, according to the Web site Fox Business. But Trump Plaza, which brought in $280.3 million, and Trump Marina, at $241.9 million, finished last and next-to-last. Casino revenues in Atlantic City declined last year, as slot parlors located at nearby Pennsylvania racetracks siphoned off some day-tripping customers. For 2007, total revenue for the 11 Atlantic City casinos was $4.9 billion, down from $5.2 billion the previous year, according to the Philadelphia Inquirer. Pennsylvania’s six slot parlors posted total gambling revenue of $ 1 billion in 2007. The seaside gambling mecca is attempting to reinvent itself in the image of Las Vegas, to gain a greater share of revenue from non-gaming sources, by adding high-end shopping and restaurants, such as The Pier Shops at Caesars and the Quarter in the Tropicana. MGM Mirage has also announced plans for Atlantic City’s largest project ever—a $4 billion to $5 billion resort that will include 3,000 hotel rooms, 500,000 square feet of retail space, a 1.500-square-foot theater, and a casino that will include 5,000 slot machines. Also, a large, non-gaming hotel will open this year. The Water Club, a $400 million, 800-room hotel, will open near the Borgata Hotel Casino & Spa. The hotel is a joint venture between Boyd Gaming and MGM Mirage.