Why Posh Revel Failed in Atlantic City

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Sept. 2 (Bloomberg) -- Macquarie Capital's Chad Beynon and Bloomberg Intelligence's Brian Miller discuss the closing of the Revel Casino Hotel in Atlantic City with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Rebel.

Is it over, done, no one will take up or shut of this is this?

It seems like the big building is over in atlantic city.

A lot of the operators learned their lesson and this is one they will never forget this because of the size of the property and the operating loss their handling.

What happened with rebel -- revel?

It was a story of poor planning.

They had gone through two different funding initiatives.

I had a no smoking policy -- it had a no smoking policy.

That was not great.

It was pitched as a resort location, very high-end.

No place where people could eat because everything was so expensive.

Were there flaws in the strategy of what revel was supposed to be?

It had a strategy of throwing a new year's eve party every night and they thought there was a customer for that.

Bergatta generates 20%. they have actual places to sit down.

At revel, no place to sit down.

Revel did not have a database.

They could promise the world but they did not know who to call.

The high operating costs, they had a very expensive utility contract and that is one of the factors why it may not get sold.

All this combines into a sad situation that ended today.

Waited morgan stanley get involved, why would they invest in a gaming operation?

You go back to where they were looking at this deal.

It was where a lot of companies were looking to invest in casinos.

They got out of that deal for a little under $2 billion the that was a $3.5 billion casino.

You saw a lot of companies that were not traditionally casino industries involved along with the rest of all of their industries during the financial downturn and it took a big drop.

There were giving experts that passed on revel.

No one bid, it goes into bankruptcy.

Paris is doing well in atlantic city.

Forgot a -- bergotta has been doing well.

They have a strong, loyal database.

You have a huge population center, high wages.

It has been servicing those

This text has been automatically generated. It may not be 100% accurate.

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