Riviera sees losses widen in 2011, even as revenue up
The owner of the Riviera hotel-casino in Las Vegas has reported a higher annual loss, even as net revenue improved.
Riviera Holdings Corp., which emerged from bankruptcy in April 2011 under new ownership, said net revenue in 2011 for the Las Vegas property was $81.7 million vs. $79.4 million in 2010.
The net loss in 2011 of $15.9 million was also up from the $13 million lost in 2010.
Quarterly numbers were not disclosed in the company’s annual report.
Riviera is selling its casino in Black Hawk, Colo., so its results aren’t included in those numbers.
With its Las Vegas property including 2,075 hotel rooms, 980 slot machines and 52 table games, Riviera said results there have been harmed by a reduction in foot traffic on the Strip related to the indefinitely-stalled Fontainebleau and Echelon casino-resort construction projects.
“We anticipate that our walk-in traffic will be adversely impacted for the foreseeable future,” Riviera Holdings said in its annual report.
Despite this problem, the company said casino revenue in 2011 increased 7.2 percent to $37.8 million.
Riviera Holdings said it achieved this increase even as slot machine win fell because of reduced visitation.
Increases in table game play more than made up for this as the Riviera targeted players favoring Asian games such as baccarat and Pai Gow.
Food and beverage revenue of $14.422 million fell 1 percent from 2010 to 2011 while room revenue improved 5.6 percent to $35.2 million.
Average daily room rates increased in 2011 by $3.25, or 5.9 percent, to $58.25.
Hotel room occupancy of 77.3 percent in 2011 was up from 74.9 percent.
Overall, the annual loss widened on higher casino and general/administrative expenses, the company said.
Through the bankruptcy process, the company shed $276.4 million in debt and other liabilities, yielding a reduction in interest expenses.
Prior to emerging from bankruptcy, the company was carrying $292.5 million in debt and other liabilities. That number, as of Dec. 31, was $112.2 million and includes a new $72.4 million credit facility.