Owner of Stratosphere reports 3rd-quarter loss of $3.3 million
The owner of the Stratosphere in Las Vegas reported a quarterly loss today, saying summertime business for the hotel and two of its sister properties deteriorated on a year-over-year basis.
American Casino & Entertainment Properties LLC reported a third-quarter loss of $3.3 million vs. $4.2 million lost in the year-ago quarter. The loss narrowed thanks to lower expenses for interest, depreciation and amortization.
Net revenue fell from $87 million to $85.8 million.
While visitation to Las Vegas has gradually been inching upward, the 2,427-room Stratosphere appeared to suffer during the quarter from the continued excess supply of hotel rooms in the city.
Hotel revenue there fell 4.3 percent as occupancy declined from 91.2 percent to 90.1 percent, and the average daily rate fell from $50.31 to $48.99.
Overall net revenue for the property declined 1.7 percent as casino revenue slipped 0.4 percent, mainly due to a reduction in play on slot machines.
American Casino said net revenue from its two Arizona Charlie’s properties in Las Vegas fell 4.4 percent as gaming, hotel, and food and beverage sales all declined.
The Arizona Charlie’s properties compete in a locals market marked by high unemployment and intense competition with the likes of Cannery Casino Resorts, Boyd Gaming and Station Casinos.
Bucking the trend of declining revenue was American Casino’s Aquarius in Laughlin, where net revenue increased 2.2 percent.