Vol. 5, No. 5, May 2008
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Trump Is Open to Offers
Contrary to recent reports that Donald Trump will not sell off any of his Atlantic City properties, Trump Entertainment Resorts issued a statement last month saying that the chairman, principal shareholder and Celebrity Apprentice star “might pursue a transaction if presented with an offer … in the best interests of our shareholders.”
On March 31, The Donald and daughter Ivanka (his company’s vice president of real estate development) came to town to top off the aptly named Chairman Tower at Trump Taj Mahal. At the time, Trump said his casinos are “doing very nicely.” Of the new tower, he boasted, “It’s going to be spectacular. It’s going to set a new standard in Atlantic City for quality and luxury.”
Though shares of Trump stock hit a record low last month, the Trump casinos fared better than most in March, with revenue declines smaller than the 9.9 percent industry-wide drop.
Trump, who is not presently in negotiations to sell, says he is focused on improving performance at his three properties. Taj Mahal is the best performing, with gaming revenues last year of $508.5 million (landing it in fifth place among Atlantic City’s 11 casinos). Trump Plaza and Trump Marina brought up the rear, with $280.3 million and $241.9 million respectively.
The $250 million Chairman Tower, designed as to draw more high rollers and conventioneers, should prove a good investment. With 782 guest rooms (including 74 suites) and three meeting rooms, it will connect to the Taj at the Spice Road level.
