Trump Marina Casino Sold to Developer of Seminole Hard Rock

Coastal will be the sole owner, but Margaritaville will have extensive say in remodeling and design throughout the resort.

The underperforming Trump Marina Hotel Casino was sold today to Coastal Development LLC, through its affiliate company Coastal Marina LLC. Donald Trump unloaded the poorest achieving of his three Atlantic City resorts for $316 million.

Although the sale will take at least six months to close, Coastal is steaming ahead with plans for a redesign of the entire property, in conjunction with Jimmy Buffett's Margaritaville Holdings LLC.

Coastal will be the sole owner, but Margaritaville will have extensive say in remodeling and design throughout the resort. Margaritaville currently operates a string of restaurants and retail stores, all based on a Florida Keys theme.

Richard Fields, chairman of Castal Marina, has previous experience in casino development from his time involved in the construction and opening of the Seminole Hard Rock Hotel and Casino in Hollywood, Florida, a venture which proved so successful that the Seminoles stopped honoring the original contract to the developers after having paid out billions more than expected on a percentage deal.

Trump Marina lagged far behind sister projects Trump Plaza and Trump Taj Mahal. It sits between Atlantic City industry leaders Harrah's Atlantic City and the Borgata. The first quarter of this year was disastrous for Trump Marina, reporting a 48.2% drop in gross operating profits.

Industry analysts felt the price was exorbitant, and a major victory for Trump. However, Fields also got Trump to drop his suit, in which Trump alleged Fields broke a contract to represent him in dealings with the Seminoles when Fields signed the Hard Rock deal with the Cordish Company as partner.

It will take great effort and much investment for Coastal to reverse the fortune of this casino. Involving Margaritaville may be a big step forward, but it is only the first of many which must come.