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Atlantic City 2009 forecast
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Good riddance to 2008. A cautious hello to 2009.
Gaming analysts don't expect 2009 to be any better than the dismal 2008. Maybe even worse. The city is not expecting any new product this year, and may even lose a casino or two as the year unfolds.
*Resorts missed a debt payment. It's sister property, Hilton, is struggling as well. But there's no truth to the rumor Resorts will shut down for the winter.
*Trump Entertainment Resorts, owner of three casino hotels, is negotiating with bond holders and others to restructure its debt after missing a December payment to "improve liquidity, and create a platform to grow and diversify," according to a corporate press release. If negotiations fail, bankruptcy is an option. The company is also set to shed Trump Marina this year to a partnership between New York developer Richard Fields and Jimmy Buffett. But the deal isn't done until the deal is done. Fields has until the end of May.
*Tropicana will have a new owner, and barring any unforeseen flies in the ointment, that owner will be the Cordish Company, which developed The Walk in midtown A.C. The $700 million acquisition will feature the return of Dennis Gomes, who runs the Cordish casino arm. Gomes spent many a productive year with Tropicana's former parent, Aztar Corp, and is the man responsible for conceiving The popular Quarter at Tropicana.
*Borgata's president, Larry Mullin, leaves the company Monday to take over casino operations in Australia. The good news is Robert Boughner, Boyd Gaming's point man on creating and developing Borgata, will return to assume Mullin's duties, at least for the time being. Borgata has eliminated more than 400 positions.
*Harrah's Entertainment, which operates four casino hotels in town, has shuffled its management team, but otherwise has no major changes planned. The company has slashed jobs at its four properties.
How many more job cuts will come in 2009 remains to be seen. Meanwhile stores have closed at both The Pier Shops at Caesars and The Walk.
On a positive note, the long-awaited upper end, express rail service between New York and Philadelphia - a partnership between Borgata, Harrah's and Caesars known as ACES - debuts in February. More on that in another post.
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