Atlantic Club to be sold, could cause issues for Atlantic City
Atlantic City’s financial instability to be tested after the venue changes hands
The casino scene in Atlantic City is about to get a little more active, and this may not be a good sign for overall revenue. After a long wait, TJM Properties has finally found someone willing to buy the shutters Atlantic Club and, once it reopens, the city’s nine casinos are going to be fighting for gamblers in ways they haven’t had to for years. This is going to make it difficult for them to turn a decent profit.
TJM purchased the property from Caesars Entertainment for $13.5 million in 2014. It then tried to find a buyer but, despite several potential candidates, no deal could ever be consummated. It has now been sold to Colosseo Development Group, a local residential and commercial real estate development company, which will refurbish the property and then open it under a new name, the Colosseo Atlantic City.
Colosseo’s president, Rocco Sebastiani, sees great things for the new property, explaining to the Associated Press, “We’re going to renovate the property and reopen it as an 800-room hotel with new retail and new food and beverage offerings. It’s got a lot of renovating that needs to be done. That’s what we do. We buy assets that need a lot of work and bring them up to market.”
The new property will differ from other Atlantic City properties in one major way. It won’t offer a casino, nor does Colosseo have any plans to include one. However, its operations as a hotel are going to cause casino resorts in the city to have to struggle more for patrons, which could ultimately hurt their gambling offerings, as well as their bottom line.
Gross operating profits in the city have already fallen. Across the first half of the year, they were down 16.8% compared to the same period last year. This included two new venues, Hard Rock Café and Ocean Casino, which means the figures indicate an even bigger decline than if only the previous seven venues had been in operation.