Cosmopolitan posts $25 million loss, but execs remain optimistic
The Cosmopolitan lost $25.2 million in the second quarter, according to an earnings report released Friday afternoon.
The $3.8 billion Strip resort's loss shadowed the $18.7 million lost in the second quarter of 2012, though its net revenue of $171.2 million was up from last year's $165.7 million.
Casino revenue suffered most, generating $30.6 million compared with the $38.6 million pulled in the second quarter last year — a 20 percent decrease spurred by poor performance at the tables.
Despite the losses, Cosmopolitan bosses said they're optimistic about the resort's performance.
"We are encouraged by the increases we continue to experience in key areas of our business and pleased that the brand continues to resonate with Las Vegas visitors and locals, further establishing our position within the luxury market," resort officials said in a statement.
Those increases included improved performances by hotel rooms, food and beverage, entertainment and retail.
Hotel revenues increased $7.7 million, or 12.1 percent, totaling $71.1 million. Average daily room rates grew from $268 to $283, occupancy hovering around 93.6 percent.
Revenue generated by food and beverage grew $7.1 million, or 8.6 percent, to $90 million, driven by the success of the resort's Marquee nightclub.
Collectively, entertainment and retail revenues increased $1.6 million, or 21.1 percent, to $9.3 million.