Aliante Station emerges profitable from bankruptcy

Aliante Station Casino and Hotel in North Las Vegas.

VEGAS INC coverage

Aliante Station hotel-casino in North Las Vegas posted a $573,000 profit during the final two months of 2011 after emerging from bankruptcy, its owner says.

The 202-room property is equipped with 2,007 slot machines, 36 table games and amenities such as bingo, a sports book, a nightclub/showroom, restaurants and a 16-screen movie theater complex.

It was spun out of the Station Casinos Inc. bankruptcy and is now owned by investors that had invested in its debt.

However, it’s still managed by Station Casinos.

The property opened in November 2008 during the worst recession in memory and lost — on paper — $528.5 million in 2010.

That loss came as accounting rules required Station Casinos to write down its value by $466.5 million because the recession had reduced its ability generate profits in the future.

Developed at a cost of $662 million as a joint venture between Station Casinos and the Greenspun family, owner of the Las Vegas Sun and its sister business publication, VEGAS INC, the Aliante Station land and improvements are now worth only about $65 million on paper.

With $373 million of its debt extinguished in the bankruptcy, leaving it with just $43.2 million in debt, Aliante Station can generate profits because its payments for principal and interest on its debt have been slashed.

Aliante Station’s annual report says net revenue for all of 2011 came in at $70.4 million, up from $65.3 million in 2010.

For all of 2011, it earned $365.6 million, which includes a one-time gain of $373 million for the extinguishment of that portion of its debt.

The property said in its annual report that casino revenue increased 7.1 percent in 2011 to $52.9 million thanks to successful marketing programs that boosted slot revenue 7.9 percent.

It said food and beverage revenue increased $900,000 to $13.5 million thanks to an increase in the number of food and beverage guests. The improvement was attributed to targeted marketing, price decreases at selected restaurants and conversion of an Italian restaurant from leased to owned status.

Its hotel last year reported a 90 percent occupancy rate, up from 85 percent. The average daily rate of $80 was up from $78. In all, hotel revenue came in at $6.1 million last year, up 8.6 percent from 2010.

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  1. Aliante Station is the little engine that could...
    It opened at precisely the worst time in our nation's economy since the Great Depression. Yet, through the efforts of well-trained and friendly employees, it has survived to offer area locals great deals on food and gaming.
    The facility is absolutely gorgeous. The selection of games, particularly video poker, is likely the fairest in town.
    Access showroom is simply the best mid-sized concert venue in Las Vegas, with the best sound, hands down. Unfortunately, it's not often booked, which is a real waste.
    The hotel rooms are very nice, and our out-of-town guests love the comfortable beds and modern room design.
    There are, unfortunately, a few problems to note: (1) Food quality at the buffet has been cut, and cut, and cut again. Please, charge us a little more and bring back better quality food. (2) Outdoor pool events like "Inked Sundays" fill the surrounding residential neighborhoods with pounding music. Seriously, enough already. Respect the fact that you exist in a neighborhood, not on the Strip. (3) There are many reports that Aliante Station is becoming the "red-headed step-child" of the Stations chain due to the fact that Stations only manages it and no longer owns it. We'll see how that issue develops (perhaps this explains why Access has so few bookings).
    We really want Aliante Station to succeed: It's a wonderful entertainment venue and, so far at least, a safe place to play and stay.
    It's sad to see a current market value that's only about 10 percent of its original cost, but then I suppose many of us homeowners are in a similar boat.
    Your neighbors are cheering for you, Aliante Station!