Chang bets big on Trump Entertainment

New York /
Feb.February 29, 2008 02:35 PM

New York hotel developer Sam Chang has quietly and aggressively increased his stake in Trump Entertainment Resorts Inc.
 
Chang, chairman of Great Neck, N.Y.-based McSam Hotel Group, has increased his stake in Trump Entertainment to 7.5 percent, making him one of the Atlantic City casino operator’s top four stakeholders, according to a filing with federal regulators earlier this month.
 
Trump Entertainment officials said they have had no contact with Chang, who could not be reached comment.
 
“Certainly it’s a positive sign of [Chang’s] substantial belief in the company’s potential,” Trump Entertainment spokesman Tom Hickey told the Press of Atlantic City.

As one of New York’s largest hotel developers, Chang has about 4,000 hotel rooms under development. He has agreements with Holiday Inn, Candlewood Suites, Sheraton and other brands.
 
Chang has been branching out from the hotel market. He recently acquired property in the East Village as part of a plan to build more condominiums. Chang has also sold two unfinished Manhattan hotels to Magna Hospitality Group this month, as The Real Deal reported earlier this week.

Chang’s investment in Trump Entertainment comes at a critical time for the Atlantic City gaming industry. Casino revenue fell 5.7 percent to $4.92 billion last year, according to the New Jersey Casino Control Commission.
 
The drop, Atlantic City’s first-ever annual decline in gaming revenue, was blamed on a partial ban on smoking in New Jersey casinos and competition from new gaming venues in Pennsylvania and upstate New York.
 
“The market right now is in a state of definite and irreversible transition from a local day-trip market to a regional destination resort,” said Michael Pollock, managing director of Spectrum Gaming Group. “From an investor standpoint, it’s going to take people with a very long time horizon.”

For the first nine months of 2007, Trump Entertainment lost $15 million, or 48 cents a share, compared with a loss of $8.8 million, or 29 cents a share one year earlier. Revenue fell to $759.6 million from $782.1 million a year earlier.
 
Trump Entertainment attempted to sell itself last year. It entered talks with a group led by former Trump Taj Mahal President Dennis Gomes and Morris Bailey, the co-principal of Manhattan-based JEMB Realty. After those talks broke down in July 2007, Trump Entertainment announced it had taken its properties off the market.
 
The company has seen some changes at the top. Last year, it named former Caesars Palace president Mark Juliano as its new chief executive and placed Ivanka Trump, Donald Trump’s daughter, on its board of directors.

Trump Entertainment includes Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina. Trump Taj Majal is slated to open a new 39-story hotel later this year with 786 rooms.
 


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
Westchester office park owned by George Comfort & Sons slated for auction
Westchester office park owned by George Comfort & Sons slated for auction
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
A&E pays just $510K in lead-paint settlement
A&E pays just $510K in lead-paint settlement
Heath Freeman, managing director of Alden Global Capital, and the house at 3503 Lodge Drive in Coconut Grove, Miami (Getty, Compass / Brown Harris Stevens)
“Hedge fund vampire” bites into waterfront Coconut Grove mansion for $19M
“Hedge fund vampire” bites into waterfront Coconut Grove mansion for $19M
Seeding from recapitalization of 25 health care properties
KKR, Cornerstone in $1B JV to develop health care facilities
KKR, Cornerstone in $1B JV to develop health care facilities
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...