The Tropicana Las Vegas on Monday posted a smaller first-quarter loss as revenue improved.
In its quarterly report, the hotel-casino said it lost $8.02 million in the quarter ending March 31 vs. a loss in the year-ago quarter of $9.07 million.
Net revenue of $23.3 million was up from $16.7 million.
The Tropicana, with 1,375 hotel rooms, is valued on paper at $368 million. It has been operating at a loss with negative cash flow since it was purchased out of the Tropicana Entertainment Holdings LLC bankruptcy in July 2009 by investors led by Onex Corp. of Toronto.
The investors have pumped $141.1 into the property for a renovation, but it continues to lose money.
That’s because of what Tropicana Las Vegas described Monday as intense competition — 7,400 hotel rooms opened during the recession at the nearby CityCenter and Cosmopolitan resorts — and weak consumer spending.
“Corporate spending on conventions and business development remains at levels lower than experienced in the past in response to the current global economic conditions. These and other uncertainties have and could continue to adversely affect our results of operations,” the property cautioned in its report.
In the first quarter, revenue improved on a year-to-year basis thanks to the completion of the remodeling work, a higher hold percentage at table games and the addition of 129 slot machines, Tropicana Las Vegas said.
Room revenue also improved as the result of an increase in the average daily rate from $61 to $79. Occupany increased two percentage points to 79 percent.
The property is hoping for continued revenue improvements with the addition of the Laugh Factory comedy show and the lease of its nightclub and beach club operations to the company behind the Bagatelle Champagne party brunch concept.