Hard Rock group along with other investors is ready to purchase Trump Taj Mahal which was a popular casino resort during its glorious days. Currently, the casino in Atlantic City is owned by Carl Icahn. The Hard Rock group is investing $300 million for the shuttered casino hotel and hopes to revive its glory. The casino will acquire the brand Hard Rock Hotel & Casino Atlantic City. The site will be renovated to meet the modern demands and it is expected to create 3000 jobs in the region.
Icahn is the owner of Trump Plaza and Tropicana Atlantic City. The investor wanted to own and operate just one casino in Atlantic City. So, the sale of Trump Taj Mahal is imminent and necessary for the company. Hard Rock is looking to gain from this deal as it was planning to enter the Atlantic City casino market since 2010. The other investors participating in the deal are the Morris and Jingoli families.
The Trump Taj Mahal was one of the properties of Donald Trump which was hailed as an eighth wonder. Soon, he filed for bankruptcy because of the mismanagement of debt. Icahn purchased the casino resort through Chapter 11 filing, but the casino was shut down after a massive strike. The closing down of the casino removed 2,100 jobs in the region. The new deal is hoping to revive the casino attraction of Atlantic City. This is a welcome move for the Atlantic City government as the new casino will attract more investors to enter the city. The actual cost of the deal is not disclosed but Jim Allen, CEO of Hard Rock International revealed that the company will invest $300 million for renovating the casino.
Previously, Hard Rock wanted to build a huge casino resort in Meadowlands, New Jersey. When a statewide referendum was held in November, the voters said No to building a huge casino and it stopped Hard Rock from expanding. With the purchase of Taj Mahal, Hard Rock is hoping to become a big player in the casino industry of Atlantic City. There is no clarification on whether Hard Rock wants to continue with its plan to Meadowlands, but the issue will remain closed for the next two years.
The Jingoli and Morris groups are also vocally happy about their involvement in the casino industry. Hard Rock group is a well-known leader in the casino and gaming industry. The new investment is expected to provide good returns for the investors. It is also welcomed by the Atlantic City government as it will open up construction jobs and numerous other positions in the Hard Rock casino and hotel. Casino tourism revenue for the city will also increase with the new casino resort inviting several wealthy gamers from all around the country.
Icahn clearly stated that the deal is only for the Trump Taj Mahal. The Trump Plaza Hotel and Casino will still remain with Icahn even though it was shut down in 2014.