Tropicana reports jump in revenue amid renovation project
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A view of the gaming pit on the casino floor at the Tropicana. The property is going through its first major renovation in nearly 25 years.
Thursday
11 August 2011
2:58 p.m.
Revenue soared at the Tropicana Las Vegas resort in the second quarter thanks to the completion of most of the renovations at the property.
Tropicana Las Vegas Hotel and Casino Inc., owned by investors including Onex Corp. of Toronto and gaming executive Alex Yemenidjian, today said revenue for the quarter ended June 30 was $24.4 million, up from $13.8 million in the 2010 quarter.
With business picking up and new venues opening, expenses increased as well, leading to a quarterly loss of $9.4 million.
Still, that was an improvement from the $11.2 million lost in 2010’s second quarter.
The company today said it has completed $124.4 million of its $143.5 million renovation project that included renovating more than 1,300 rooms, improving the casino and adding Café Nikki, Club Nikki and Nikki Beach Club.
A spa that will be funded and operated by a third party is due to be completed in October, the company said.
In the second quarter, hotel room revenue increased $3.7 million as the average daily rate increased from $54 to $66. Occupancy of 94 percent was up from 80 percent. Business has been improving for hotel operations since remodeled rooms were put into service in 2010.
Casino revenue increased $2.9 million thanks mostly to more activity on the slot floor as slots were added and marketing drove customers to those machines.
Food and beverage revenue increased $4.5 million thanks mainly to the opening of Café Nikki in December.
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Had a look at Tropicana when I was in Vegas in June and was very impressed by renovation of gaming area which looked great. I even contributed to their slot revenue for the quarter! Mob exhibition was a very long walk from front entry though.
I stayed at Bellagio for the 3rd time in past 6 years and they need to take note of what Tropicana has done as gaming areas and rooms at Bellagio are looking tired in comparison.
Nice job! Keep the momentum going.