After nine-figure bid, Toronto's Brookfield victorious in Revel auction

That didn't take long. Atlantic City's Revel hotel closed its doors on September 10, and now, about three weeks later, it has a new owner.

According to multiple sources, Brookfield Asset Management, a Toronto real-estate investment firm, won the bankruptcy auction for the hotel, ponying up $110 million. The offer still must be approved by the bankruptcy court with an initial court date set for October 10.

Brookfield is no stranger to hospitality. It owns the Hard Rock Hotel & Casino in Las Vegas and Atlantis Paradise Island in the Bahamas.

The acquisition didn't come easy. Brookfield was in competition with Florida investor Glenn Straub, who reportedly made a $90-million bid for the hotel earlier this month, with fuzzy plans to alter the property's function.

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

However, though improbable, Straub and his lawyers are challenging the auction's outcome. As Real Deal writes, the auction was reportedly conducted in secrecy. For example, Revel's lead bankruptcy attorney, John K. Cunningham, did not reveal until Tuesday in a filing designed to disclose potential conflicts of interest that Brookfield, a client of his firm in unrelated matters, was even involved in the auction.

Further, as contends, "It's possible that Cunningham and his investment banker colleagues received a timely bid from Brookfield that was deficient or not acceptable to the sellers. The bid procedures approved by the bankruptcy court allowed them to work with Brookfield to improve the bid to the point where Brookfield could participate in the auction.

"We're taking it to the courts," Straub told the Press of Atlantic City Wednesday morning. "We're not doing anything else."

Even more amazing than the drama surrounding the sale was the actual final purchase price. The cost to build Revel in 2012: $2.4 billion. Cost to acquire Revel two years later: $110 million.


Suggested Articles

Demand came in 67,000 rooms lower during the week ended July 4 than the previous week, according to Jan Freitag, STR’s SVP of lodging insights.

Two recent cases address the issue of hotel liability when personnel assist police who have an issue with a guest—here's the lesson for hotels.

The Buccini/Pollin Group has a longstanding connection to the Baltimore region, opening its first hotel in the area in 1997.