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Friday, Nov. 13, 2009 | 3:35 p.m.
Noting reduced business volumes and fierce competition, the owner of the Las Vegas Hilton hotel-casino reported Friday that its third quarter loss widened as revenue tumbled.
Colony Resorts LVH Acquisitions LLC said it lost $13.2 million in the third quarter vs. the $6.2 million lost in 2008's third quarter. Net revenue of $44 million was down from $63.5 million.
With convention attendance down 27 percent in Las Vegas in 2009 through September, the Hilton enjoyed less activity from the adjacent Las Vegas Convention Center.
The 2,950-room Hilton on Paradise Road said room revenue was down 38 percent, casino revenue was off 17 percent and its food and beverage take fell nearly 21 percent.
"The decrease in volume is due to the general economic downturn and fierce competition," the Hilton commented regarding the decline in casino revenue, to $18 million.
Unlike some of its struggling competitors, the Hilton isn't in financial distress thanks to the resources of its deep-pocketed owners including affiliates of Colony Capital and Goldman Sachs.
The owners pumped $4.5 million in additional equity into the property during the fourth quarter, Colony Resorts LVH disclosed.
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they are losing it with their recent 6/5 blackjack. going downhill like harrahs. need to go back to good rules before they really sink.
I keep reading about the 6/5 blackjack issue.
The modern day resort operators need to take a page out of Benny Binion's playbook and give people a good gamble.
Apparently the house edge is insufficient
Actually, the Vegas Hilton has been in operation for so many years that we can't say that construction costs led to a very high break-even point in daily business. Obviously the daily expenses are too high because the entire operation is just way too big and not quite well located.
I have oftentimes thought about it when I walked into that building from the North parking , and it took so long until I finally was at the casino. The sportsbook is so big with hardly any people in it (oversized). The hotel lobby is oversized, the buffet is ok, too bad they closed the poker room. And the rest of the casino is mostly unuused. During the evening hours they may have some action. Obviously, it's not enough to pay the big CEO paychecks and all the other executives asking for 6digit paychecks.
Wouldn't it make sense to shut down parts of the hotel towers and shrink the hotel to a degree at which it might be profitable again? This oversized high limit section with so many employees but hardly any player in it, these times are over it seems. Over-Supply for these gamblers in Vegas have led to a situation we're in right now. It's good for the bargain seekers, but bad for the employees and companies. Some of them will probably not survive this crisis.
From Switzerland
Here in the house that Elvis built, the good times used to roll, however, they have gone down the same road their competition has, and that is to cut back on the value, and try to overcharge for everything. This place also suffered greatly shutting down the Star Trek Experience. Get these corporate boogers out before it's too late!!
I also believe that energy costs are no longer something the casinos can't neglect. So many slotmachines without puppets sitting in front of it, that's energy being wasted. And the neon lights outside, the airconditioning. All money that the casinos are losing without generating enough cash to break even....
the old model of giving fossil entertainers like manilow and midler 2 and 3 year runs isn't helping vegas either. give them 3 months and bring in something fresh.
people will trade a little production value for something fresh every few months.
i dont think the hilton is that geared toward enterrainment anymore. i dont really care to see shows anyway. i come to vegas to gamble and go to a place with decent rules. they had some of the best rules 3/2 payout, surrender, etc. i just hate to see them resort to the lows other properties have, just to gain a fraction percent for the suits, which in turn drives away more customers than the extra profit they make by implementing bad rules. i like the place for the nice chandeliers, glass elevators with easy access to room without going through the casino, the pool and jacuzzi. you can get something really nice to eat or fast food quick. i hope they change their ways soon with the new ceo or it will be lights out.