Revenue declines at the Tropicana
The lack of an operating nightclub last summer at the Tropicana Las Vegas caused the resort's third-quarter revenue to decline, the company reported today.
The 1,375-room hotel-casino said quarterly net revenue for the period ending Sept. 30 came in at $22.4 million, down from $24 million a year earlier.
The company's quarterly net loss narrowed from $10.8 million last year to $9.7 million this year. Much of the loss related to non-cash depreciation and amortization expenses totaling almost $4.7 million.
The Tropicana said its results continue to be affected by "challenging global economic conditions'' that have impacted visitation to Las Vegas and spending, as well as growth in local hotel room inventory by about 8,900 rooms since the openings of CityCenter and the Cosmopolitan.
''Consumer spending continues to remain low," the company said. "Corporate spending on conventions and business development remains at levels lower than experienced in the past."
Casino revenue increased from about $9 million to $9.8 million, while room revenue remained steady at $8.9 million, the Tropicana said. Average daily room rates improved from $70 to $74, though occupancy dipped from 92 percent to 86 percent.
Food and beverage revenue tumbled 28 percent year-over-year to $5.6 million after the resort's nightclub and beach club closed in March. They have since been replaced by newly-opened Bagatelle venues, which should bolster food and beverage sales.
The property also hopes to boost hotel revenue with a franchise deal with Doubletree by Hilton. The Tropicana will be integrated into Hilton's websites and reservation phone numbers starting Jan. 1.
''The partnership affords us the opportunity to maintain our individuality and culture, while taking advantage of the sales and marketing scale of the worldwide Hilton organization," the Tropicana said in its report.