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twitterHooters reports loss, says Chapter 11 possible
Sun file photo
The Hooters resort-casino on the Las Vegas Strip.
Friday, Nov. 13, 2009 | 2:36 p.m.
The owner of the 696-room Hooters hotel-casino in Las Vegas reported another quarterly loss Friday, even after slashing expenses.
155 East Tropicana LLC reported losing $5.377 million in the third quarter vs. a loss of $5.26 million in the year-ago quarter. Revenue of $10.729 million was down from $14.211 million as the recession deterred visitation to Las Vegas.
Operating expenses of $12.6 million were down from $16.15 million.
The Hooters property said it remains in default on debt obligations and that restructuring talks continue with the debt holders. The company has $147 million in debt.
"The company cannot be assured that it will be successful in completing a refinancing or restructuring. If the company is unable to do so, it may determine to seek protection under Chapter 11 of the U.S. Bankruptcy Code," 155 East Tropicana said.
The company was formed to buy the former Hotel San Remo and it reopened as Hooters in February 2006. Since then, the downturn in the economy has hurt results at Hooters and it's offering midweek rates as low as $20.
"The current state of the economy has negatively impacted our results of operations in the third quarter of 2009 and we expect that impact to continue in 2009 and into 2010," the company said in its quarterly financial report. "Because we are in the hospitality and recreation business, which is largely dependent on discretionary spending, we believe that the weak housing market, increases in unemployment, decreases in air flights to Las Vegas, decreases in the value of stock and other investments and the general tightening of spending on business travel have all affected visitations to Las Vegas and the spending budget of our customers."
A problem in the second quarter -- closure of 235 rooms to retrofit the plumbing risers -- was resolved by Aug. 14.
Tropicana Avenue road work in front of the property -- which reduced drive-in traffic as well as walk-in traffic from the MGM Grand across the street -- was completed in the third quarter.
"To counter these business disruptions and economic conditions, we have continued to focus on managing costs. Overall, operating expenses declined $3.5 million from the same quarter prior year. Operating costs are expected to continue to decline from 2008 levels in the fourth quarter of 2009 as we continue to target cost reductions," Hooters said.
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Locally owned and independent for more than 50 years.
Who's idea was it to turn "Hooters" into a family friendly complex?
Quote:"Who's idea was it to turn "Hooters" into a family friendly complex?"
The same people that made Vegas into Disneyland in the 1990's
So what there trying to say is that there broke' And there looking for a buyer.
@ POWERPLAY
Actually, They are saying that THEY'RE going over THERE to see if any of THEIR friends want to help.
So there.
Green shoots in the economy?
Because we are in the hospitality and recreation business, which is largely dependent on discretionary spending, we believe that the....
weak housing market
increases in unemployment
decreases in air flights to Las Vegas
decreases in the value of stock and other investments
general tightening of spending on business travel
...all affected visitations to Las Vegas and the spending budget of our customers.
Indeed, true for Las Vegas and the rest of the country.
they could go without underwear to save even more money.
When the room rates will be 20 dollars midweek plus perhaps 60 or 65 on Fri/Sat in March/April, I will be there. It's essential to have a game going in the poker room and at least a few good videopoker machines. I heard that the rooms are actually quite nice and the pool is nice, too. So I think 20 dollars per night for a room can't be beat and I would be inclined to stay there. Therefore: Please don't go bust before May, please.
I guess those hooters can not save them now.
HA! HA!
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I think it's pretty bad how they advertise $3 blackjack. Turns out it's only on 1 table and they have the ripoff payoff of 6/5 on BJ. Are they that frightened to give a customer any chance?
They could always turn it into a drive-thru wedding chapel and burger stand.
logic - its even worse at fitzgeralds downtown... $3 bj, 1 table, even money on bj.... at $5 bet you get 6/5 on bj
It's Hooters man! Where else can you play BJ & other card/table games with a dealer that is nice to look at and speaks english?!? Most dealers in those high-end casino's are androgynous-looking Asians who just nod and smile like bobbleheads in the back of a car. (((:-)))
the evil rich people have stopped spending money.
thanks, liberals.
enjoy your free health care and ramen noodles.
Comment removed by staff.
Hooters?
IMO a bad naming idea for a hotel/casino.
I wouldn't want to say I'm going to Las Vegas and staying at Hooters.
I think they got caught up in the frenzy of the old economy.
This is the result.
As a local I used to go to San Remo when I wanted to spend a night down on the strip. The rooms were inexpensive and nice. They had a wonderful steak house, the people were friendly and I always had a nice time. I was very disappointed when a tacky organization like Hooters bought it. Dan Mareno steak house, give me a break. Bad food, high prices. Bring back San Remo.
1) it was never a good location; the San Remo barely squeaked by in the 90s 2) The building is old; retro-fitting aging buildings does not work here. Example: the short-lived Debbie Reynolds hotel 3) tiny hotels can't compete with the shiny, newer mega-resorts
If the dump burned to the ground & was bulldozed, it would increase the value of the property that it's on.
This place makes 1/2 of Downtown look like the Encore.
They have the same location problem as Maxim had. Close to, but not ON the strip. Maxim was decent and reasonable, but didn't survive. Debbie Reynolds was another example. Her name brought some folks (Including me) in, but location, or lack of was the downfall. We're going to LV in a couple weeks. I'll have to check them out.
hey stevem, us libs have no extra money thanks to the rich and lazy. that's what's wrong, no good jobs here, all your ceo buddies have sent all the manufacturing jobs elsewhere. greed baby greed, how's that doin for vegas and america. ever since the cowboy was president we've had an exodus of jobs, clinton to, in fact he was one of the worst. both parties stink.
I have always known that this property was not going to last. It's a substandard property all around. Even the girls were not so hot. The machines tighter than ever, poor food service, all pretty much the same fare that was San Remo prior to it's turnover. What's the old saying? you can put lipstick and make up on a pig, but it's still just a pig. Bye Bye Hooters... This place needs to be merged with the Trop next door as part of their makeover.
Vegas, Vegas, Vegas whats happening to you?
My wife and I used to go to vegas twice a year but I have not been in almost 2 years because of the economy (stocks/house etc). We miss you guys but it doesn't look like we'll get back until at least sep 2010 and only if the economy turns around. We usually spent around $3,000 per 4 day trip and were happy to do it. Hope vegas doesn't turn into a ghost town.
One of their biggest problems is that its a "hooters" themed casino, IN LAS VEGAS! People dont need to go there to see "hooters", they are all over the place in Las Vegas. Just open your eyes. Great idea for a restaurant, bad idea for a hotel/casino.
Comment removed by staff.
The government sure has destroyed Vegas; we want the Mob back (the Mob would NEVER let the veterans remain homeless on the streets either)
Hey, cmon now....the old San Remo and Debbie Renyolds Hotels did have one thing in common:
They both had the same old moldy musty rank smellin' porno theatre carpet at them places....and the now Greek Isles STILL has the SAME carpet in it.. (guess Vince McMahan was too cheap to replace the carpet when WWF purchased the hotel from Debbie).
I was glad to see Hooters remodeled as the place is so lively and always packed for once in the parcel property's miserable life, and I love the eye candy in there, and the Hooters blackjack dealers too although I wish they had them tank top girls dealin on the craps tables (what a sight that would be on dice landing in a bust line or just watching the girls in the tank tops raking in or paying out chips)...
The gift shop prices on any item they sell in there make ya scream RAPE ME if you buy it, as I didn't like paying $12.00 plus tax for three pairs ($4.00 for a pair) of used craps dice with the Hooters logo but they are a one of a kind and added to my mass dice collection.
If I were to manage the place, I would have a Hooters girl assigned for every occupied VIP room ...and make more family orientated fun options as well, and end up with a $147 million dollar surplus, not a $147 million dollar debt.
Not bad for a restaurant chain to have the guts buying a way overpriced well-used structure and property to make a mainstake in Las Vegas with a Nevada gaming license, this restaurant empire that started at a place built on the site of a former dumpster washing facility while the owners placed a side bet to others that they can actually sell bad food served by fine lookin/bodied women.
Who isn't going broke.
For all you who wish only for eye candy to deal to you, serve you drinks or serve in the restaurants...you are the reason for the lack of service in Las Vegas. It seems most properties have chosen that route as opposed to hiring qualified, competant employees who care about their jobs, as opposed to those looking for that golddigger to release them from the working life. Next time you have some eye candy serving you, don't complain if she doesn't give a 'hoot' about your customer service satisfaction.
The picture does depict it as a pleasant looking property, just get the Hooters name off it.
What am I going to tell my wife or girlfriend, we're going to Vegas and staying at Hooters?
Plus, with room rates as low as they are all over town, why stay at HOOTERS?
The lovely bartenders have never stuttered bringing my beer at the bar,the girls on the floor have never taken long.Never cost more than a tip.You folks seem to have forgot what made you the mecca.Get it while you can.
"The government sure has destroyed Vegas..."
No, son, Vegas was destroyed by corporate lackeys who thought they could squeeze profits out of every avenue known to visitors, and then some. The place is a massive rip-off now.
I say this, by the way, as someone who used to come at least once a month to your town. The last time I came I lost and lost and paid and paid, and in the end had little to show for dropping my hard earned money. The place is a money suck. No thanks.
The property always had location challenges and the road design is a real hurdle (pun intended). Once again management allowed the brand to tarnish and now nobody thinks of the Hooters Hotel and Casino for girls and bar food like they do the restaurants. Casino management has also played it too close to the vest when they could have built a good list from the self made men crowd nation wide.
They are in Chapter 11 because they named the casino after a bird!!!
An owl casino???? Hooters? Why that name????
Hooters isnt named after a bird, Its named after something else. (Think of Dolly Partons younger years).
The Owl Club "hotel and casino" up in Battle Mountain has been around for a century. It, too, doesn't exactly make a killing.
So some of you are saying, that eye candy and attractive people are the reason for bad service??? Really??
I was there the second night it opened. I was playing on one of the penny machines and hit a jackpot! Now I have been a BIG fan of Hooters since '83 and call me guilty, but love the whole concept. Now will a hotel/casino survive with the concept...I thought it would in Vegas...Call me an idiot. I even bought stock in Hooters. Ok now back to my experience. You can laugh now and later.
After waiting over an hour, I finally had someone come over to "view" the machine. By now, I had quite an audience, we were all making quite a scene. The tech told me that there was something wrong with the machine and that I indeed had not won, even though it showed on the machine that I had and that I had "witnesses to the fact. His supervisors and other suits came over to "witness" the machine. I had someone take a picture of the machine for me. I spoke to management on duty as well. My big jackpot reward was dinner at Marino's Restuarant (really not that good for the price and even worse for free. Never went back after all the time I lived in Vegas 4 years in time). Was give $100 in free play (Had over $5K in winnings on the machine!)on my Hooter's Card! and some player points. And eventually given more free food to eat at Hooters' Restuarant after futher complaints to Hooters' main office. Was told that they were having "problems" with the machines during the Opening.
So if this is just a tip of what they did/do for customer service...they will not be missed by me and that they get what they deserved. At least the local Vegas girls were friendly!
So change the name to 'Who Gives a Hoot'
I just visitited its website. the 20 dollar rate applies only to the bungalow-rooms, that is the 50 year old trash rooms. Would have surprised me if they give tower rooms midweek for 20 bucks per night. The cleaning and water/soap/utilities costs more than that....
the poker room is actually quite cool, although tiny. the arrogant dealer was a bit annoying. she was pretty, but way too arrogant. I mean, sorry, but is there a reason to look arrogant when dealing out the cards. it's not that hard to deal from a shuffled deck and look at some drunken idiotic kids waiting for the 2 hole cards to shove their money in. Anyway, I will put a test to it and see what they will have to offer in spring...
the downturn in the econ REALLY sucks..
I only went there once since it was Hooters. It was in 2007. The place was crawling with construction workers who were living at the hotel. The companies made a deal with the companies for special long term rates. I liked the place MUCH better as San Remo. I don't plan to ever go back. Not enough Video Poker either.
who is dan mareno?
never tried it. just to much out of the way. but secretly i wanted to go, but i got the evil eye from my wife when i suggested it.
I've stayed there three or four times; back in December for the $20 per night deal. I stay there mainly for the room rates - although I really enjoy the place. It is small and almost "cozy" when you need a switch from the mega-resort casinos. The eye candy isn't bad either. The tower rooms are definitely preferable to the bungalow rooms (which define the term dump - but hey, for $20, I am not complaining). Its just across the street from MGM when you need something bigger. Not surprised that bankruptcy looms ... they seem to never really create a consistent image.
Maybe their hooters need to be bigger and more of them bare....They could call it the " Big Bare Hooters Club" and have a pair standing out on their sign.... That would get some attention....