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Baha Mar has done it again. And by "it", we mean continued to promise to vacation-goers that their resort wonderland will open someday soon, despite filing for bankruptcy yesterday. Here are some choice quotes from the press release that Baha Mar, led by their chairman and CEO, Sarkis Izmirlian, put out yesterday:
Mr. Izmirlian stated, "I am committed to doing all I realistically can to move Baha Mar forward to be completed and opened successfully. I am confident that, once opened, Baha Mar will be a world-class destination resort that will attract guests from around the world and serve as a key economic sparkplug to The Bahamas. The Chapter 11 process provides the appropriate venue to create a viable financial structure that places Baha Mar's interests foremost."
Mr. Izmirlian continued, "The general contractor repeatedly has missed construction deadlines. This has caused both sizeable delay costs and forced the resort to postpone its opening. Unable to open, the resort has been left without a sufficient source of revenue to continue our existing business.
Oh yes. He did just throw some serious shade at China Construction America, which is mostly owned by the government on China. #sorrynotsorry. But Izmirlian continues:
Whoa. The Revel Resort in Atlantic City, home to an expensive taco truck, sent out a letter to employees recently saying that if the resort couldn't find a buyer before August 18, it would close down. Did you catch that? REVEL COULD CLOSE.
But it's not surprising. Revel has had drama from the start when its groundbreaking coincided with the global financial collapse of 2008. After finally receiving the funds to finish the construction job, the resort was open, and losing money, for just six months before Hurricane Sandy walloped the Jersey Shore. Then in early February, Revel filed for bankruptcy. But despite picking up new owners and having a ton of debt removed, the resort is still struggling.
Now, Revel is asking interested buyers for about $300 million. But we're not so sure there are many folks out there who want to buy a resort that's losing even more money than when it first opened. (Gothamist pointed out that Revel lost $130 million last year versus $110 in its first six months open.)
So, with all these money woes at Revel, perhaps room rates will be cheap? Think again.