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November 29, 2009

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Downtown Las Vegas casino-hotel posts loss

Monday, April 1, 2002 | 11:01 a.m.

The new owner of the Fitzgeralds Las Vegas reported a cash flow loss at the downtown property, but said operations are improving.

A subsidiary of Majestic Star, a holding company of a Gary, Ind., riverboat, acquired three Fitzgeralds properties out of bankruptcy court in December for $149 million. The properties include the Fitzgeralds in downtown Las Vegas, as well as Fitzgeralds casinos in Tunica, Miss., and Black Hawk, Colo.

During the quarter ending Dec. 31, the Majestic Star casino in Indiana posted a 37 percent increase in cash flow, to $5.6 million, while revenues rose 2 percent to $27.5 million. The casino reported a loss of $380,000, compared to a loss of $2.1 million in the year-ago period.

Fitzgeralds Las Vegas reported negative cash flow of $225,000 from Dec. 6 to Dec. 31, Majestic Star said, though Majestic Star Chairman and Chief Executive Don Barden said the property is strengthening.

Occupancy exceeded 90 percent in February and March, he said, with room rates even with last year. By comparison, the property's occupancy in December was 80 percent.

The Tunica casino posted $1.14 million in cash flow during December, Majestic Star said, while the Black Hawk property had cash flow of $774,000.

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