Cosmopolitan lost $106.5 million in 2012

Las Vegas Cosmopolitan posted a net loss for the year as luxury resorts continue to attract customers to restaurants, clubs and retail stores, but still struggle to generate strong casino revenue.

On Friday, Streep Hotel-Casino reported a net loss of $106.5 million in 2012, up from a net loss of $96.9 million in 2011. The hotel earned $124.18 million in casino revenue last year, up slightly from $173.38 million in 2011. 파친코

In 2012, Cosmopolitan’s gaming percentage was 9 percent, down from 10 percent to less than 14 percent the company expected. The $3.9 billion resort has tried to increase the amount of gaming at casinos and operates the Tallon Club, a highly restricted gaming area with an additional 15 tables.

Nevada Property 1 LLC, parent company of The Cosmopolitan, said in an earnings report to the Securities and Exchange Commission, “We also continue to focus our efforts on increasing the volume of slot play by leveraging our unique identity program to build a database for our slot customers and expand our partnership program.”

Revenue increased across all business segments despite net losses for the current period. The resort’s balance sheet was hurt by increased promotional and operating costs.

The resort earned $240.6 million in hotel revenue in 2012, up from $178.4 million in 2011. In 2012, the average daily room rate and occupancy rate were $259 and 85.6 percent, respectively, making $222 per room. In 2011, the average daily room rate and occupancy rate were $237 and 84.3 percent, respectively, making $1999 per room. Food and beverage revenue topped the revenue chart again, making $366.2 million compared to $258.4 million in 2011.S

Amy Rosetti, vice president of public relations at The Cosmopolitan, said, “We believe our corporate strategy has put us on the right track, as evidenced by our occupancy, room rates and overall performance.”

The Cosmopolitan reported $52.3 million in pre-interest, tax, depreciation and amortization earnings last year, compared to a loss of $41 million in 2011. “We are thrilled to see our unique approach to the Las Vegas market turn into strong numbers reflected in our earnings reports,” Rosetti said. “Our 2012 financial results confirm that the Cosmopolitan brand and customer experience in Las Vegas continue to resonate.”

As of Dec. 31, the property had $48.8 million in cash. Cosmopolitan officials expect to reduce its credit facility by $3.9 billion with Deutsche Bank this year to raise $70 million to $80 million in renovation funding, according to its earnings report.

Leave a Reply

Your email address will not be published. Required fields are marked *