|By Steve Green, Las Vegas
SunMcClatchy-Tribune Regional News
Nov. 15, 2011--The owner of the Cosmopolitan resort on the Las Vegas Strip reported a third quarter loss Monday as heavy promotional spending for the new property continued to affect its results.
The Deutsche Bank-owned Cosmopolitan reported a loss of $58.5 million for the quarter ended Sept. 30.
Gross revenue was nearly $149 million, but promotional allowances like comps totaling $22.2 million yielded net revenue of $126.6 million.
There are no comparable numbers for the third quarter of 2010 since the resort was not open at that time.
For the first nine months of 2011, the Cosmopolitan lost $169.6 million on net revenue of $357.7 million.
The property began opening on Dec. 15 with 1,998 rooms. Completion of additional rooms during the quarter lifted the total available to 2,976.
The Cosmopolitan, in its financial report, said gross gaming revenue for the quarter of $23.9 million was affected by the casino playing unlucky with the table game hold, or win percentage, of 7.6 percent being below the expected range of 12 percent to 15 percent
The company plans to boost gaming revenue with a 15-table high-limit area opening this month and to boost slot play through its Identity guest loyalty program.
Room revenue of $49.3 million resulted from an occupancy rate of 83.7 percent and an average daily room rate of $233.
Food and beverage revenue came in at $68.9 million, with the company citing high volumes of customers at its restaurants and Marquee nightclub.
Separately, Las Vegas-based casino operator Affinity Gaming LLC said Monday it lost $2.3 million in the third quarter vs. a profit of $3.3 million for the year-ago quarter.
Net revenue of $103.9 million fell 7.7 percent mainly because flooding caused the temporary closure of Affinity's St. Jo Frontier Casino riverboat in St. Joseph, Mo.
Business remained difficult for the company in Southern Nevada, which has been hit hard by the recession and where revenue of $67 million was down from $68.1 million in the year-ago quarter.
Also Monday, Riviera Holdings Corp., owner of the Riviera hotel-casino on the Las Vegas Strip and a casino in Black Hawk, Colo., said it lost $4.9 million during the quarter, an improvement from the year-ago quarter when it lost $6.9 million.
Net revenue in the 2011 quarter of $19.7 million was up from $18.3 million in the year-ago quarter.
At the 2,075-room Riviera on the Las Vegas Strip, room revenue of $8.7 million was up 6.1 percent.
The average daily room rate of $49.79 was down from $55.44, but occupancy of 86.4 percent was up from 76.1 percent.
(c)2011 the Las Vegas Sun (Las Vegas, Nev.)
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