Thursday, Aug. 14, 2003 | 11:16 a.m.
Rising costs reduce cash flow at Vegas casino
The owner of the Hard Rock Hotel & Casino in Las Vegas on Wednesday reported declines in profit and cash flow in the second quarter as increased marketing costs, administrative expenses and interest expenses cut into returns.
But Hard Rock Hotel Inc. Chief Executive Peter Morton said the increased marketing expenditures "have broadened awareness of the property and will continue to drive revenues in the future."
The company reported a loss of $2 million in the second quarter compared to a profit of $3.7 million for the same quarter a year ago.
Cash flow declined by 8.1 percent, to $8.9 million.
Revenue increased 2.4 percent, to $35 million.
The company has a new long-term debt structure in place that will offer the financial flexibility to pursue new projects such as a previously announced 4,500-foot mega-suite, a two-level parking garage expansion, additional meeting space and a nightclub remodeling effort, Morton said.
Culinary Union launches Internet site on labor dispute
The union seeking to represent employees of the Aladdin hotel-casino has created an Internet site about its dispute with the bankrupt Strip property.
On the website -- www.lvaladdinalert.info -- the Culinary Workers Union Local 226 warns hotel guests that "the escalating and ongoing labor dispute at the Aladdin may inconvenience guests and leave visitors with unpleasant memories of their Las Vegas vacation, conference or convention."
The union sponsored a noisy demonstration led by the Rev. Jesse Jackson on July 23 and promised additional actions if Aladdin's management did not acknowledge the union.
The 2,567-room Aladdin is in the process of being sold out of bankruptcy for $635 million to a partnership fronted by Planet Hollywood restaurant founder Robert Earl, who wants to turn the resort into a motion picture-themed Planet Hollywood hotel-casino.
Earl has promised to retain all current Aladdin employees after the sale.
The union, which represents housekeepers, kitchen workers, food servers, porters and bartenders, wants to represent employees through a National Labor Relations Board-approved "card check" process in which workers sign cards signaling support of the union. Some employers have rejected the card-check process, instead demanding a secret-ballot election.
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