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Hard Rock in talks to buy troubled Revel Casino

The Revel casino Photo: AP

The Revel casino Photo: APHard Rock International is in deep talks to buy Atlantic City?s troubled Revel Casino, two sources close to the situation told The Post.

The 20-month-old money-losing Revel, which has been through a Chapter 11 bankruptcy reorganization this year, said last month it had hired Moelis & Co. to explore strategic alternatives.

It started looking for a buyer in June,?The Post reported exclusively?at the time.

Orlando, Fla.-based Hard Rock, whose eight casinos contribute to total corporate revenue of roughly $4 billion, has been looking to establish an Atlantic City presence.

In September 2012, it canceled a $460 million project to build Hard Rock Atlantic City due to poor market conditions.

The deal, if completed, would be a huge relief to New Jersey politicos. The seaside city has suffered from declining revenue for many years because of growing competition. A second casino, the Atlantic Club Casino hotel, the former Hilton, failed to find a buyer after two days of a bankruptcy court auction.

Morgan Stanley took a bath funding the construction of the Revel, and then turned it over to hedge-fund investors, which have been racking up losses.

In total, investors have lost more than $2 billion building and running the casino.

Hard Rock, if it reaches a deal to buy the 1,399-room Revel in the next several weeks, will likely shut it down for a renovation and a Hard Rock re-flagging , according to a source close to the matter.

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Source New York Post, http://nypost.com/2013/12/19/hard-rock-in-talks-to-buy-troubled-revel-casino-sources/