Hoping to dissuade potential buyers from purchasing Revel Casino Hotel - perhaps without understanding its financial situation - Atlantic City's largest casino union issued a report Wednesday, saying the casino is worth between $25 million and $73 million.
Casino union UNITE HERE Local 54 released the four-page analysis compiled with publicly available documents, saying that Revel's own projections "are not realistic and should not be trusted." It's valuation is based on land value and the number of hotel rooms at the property.
"We don't think it's in anyone's best interest to overpay for this property," said Ben Begleiter, a research analyst for Local 54. "It's not good for the industry or the workers. If the new owner does, they could be facing a more painful bankruptcy down the road, and that would be a hit to the employees as well."
Revel, the only non-union casino in the city, cost $2.4 billion to build and went through bankruptcy last year. Local 54 has been locked in disagreements with the casino since before it opened over its decision then to use non-union workers.
Since Revel leaders announced the casino would pursue a sale, partnership or second bankruptcy last year, the union has re-engaged, calling on the casino to protect the workers.
Revel President Scott Kreeger recently responded to those criticisms saying that none of the casino's potential buyers plan to shut it down. He also said he is not standing in the way of workers who wish to unionize.
According to Local 54's analysis, the casino won't turn a profit until 2024. In computing the casino's value, the union calculated land value based on recent casino sales at between $1.25 million and $2.71 million an acre. It valued hotel rooms between $28,925 and $52,198 each.
Revel posted a gross operating loss of $130 million last year, but performed better in the fourth quarter of 2013 than it did in the fourth quarter of 2012, according to data released this week by the New Jersey Division of Gaming Enforcement.
In the last three months of the year, it cut its losses by 43 percent from $39 million in the fourth quarter of 2012 to $22 million in the fourth quarter of 2013.
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