From the article at
http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080529/NEWS01/80529014Trump
to sell Marina casino in A.C.
By WAYNE PARRY
Associated Press
A New York gambling company is buying Atlantic City's Trump Marina Hotel
Casino for $316 million, and will rename it "Margaritaville," the companies said
today.
Coastal Marina LLC, an affiliate of Coastal Development LLC, is
buying the casino from Trump Entertainment Resorts.
Trump Entertainment
is the casino company founded by real estate magnate Donald Trump. After the
sale, the company will have two remaining casinos in Atlantic City: The Trump
Taj Mahal Casino Resort, and Trump Plaza Hotel and Casino.
"They are
buying a wonderful building in a great location," Trump said in a statement. "It
has been an important part of our company with a loyal customer base and a
dedicated team."
Richard T. Fields, chairman of Coastal Marina, said the
casino will take on a new identity once the sale closes. No timetable was
given.
"Together with Jimmy Buffett's team at Margaritaville, our plans
are to create an exciting new property that we believe will tap its full
potential and make it one of the most successful destination gaming resorts in
Atlantic City," Fields said.
Trump Marina was the lowest performing of
Trump's three Atlantic City properties. Located in the city's marina district,
it was dwarfed by market leaders -- and marina neighbors -- the Borgata Hotel
Casino & Spa, and Harrah's Atlantic City.
In the first quarter of
this year, Trump Marina reported a decline of 48.2 percent in gross operating
profits to $4.8 million.
The sale marks the conclusion of an on-again,
off-again courtship dance that Trump Entertainment Resorts has been conducting
with potential suitors for the past year. At least two prior deals to sell all
or part of the company fell through.
The company reported a wider
quarterly loss in the first quarter of this year, blaming a general economic
slowdown, competition from out-of-state slots parlors, and promotional costs
associated with its new player loyalty program, TrumpONE, which tracks play and
awards comps at all three Trump casinos. Each casinos used to have its own
player card.
The company reported a net loss of $18.6 million, or 59
cents per share, compared with a loss of $8.1 million, or 26 cents per share in
the same period a year ago.
Mark Juliano, Trump Entertainment's chief
executive officer, said cash from the sale will help it improve its two
remaining properties, as well as look at potential opportunities outside
Atlantic City.
"The execution of this transaction will provide us with
additional financial flexibility to effectively master-plan the future path of
our company in the midst of an overall transformation which has already been
marked by many successes," he said.
The company's largest project is a
new 782 room hotel tower at the Taj Mahal due to open in September.