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StumbleRiviera loss narrows to $4.2 million in second quarter
Tuesday, Aug. 24, 2010 | 9:40 a.m.
Las Vegas hotel-casino operator Riviera Holdings Corp., which is reorganizing in bankruptcy, reported a smaller second quarter loss even as revenue fell.
The company last week said it lost $4.2 million or 34 cents per share vs. a loss in the year-ago quarter of $13.5 million or $1.08.
Net revenue of $32.3 million was down from $34.6 million.
Riviera Holdings owns the Riviera hotel-casino on the Las Vegas Strip and the Riviera Black Hawk casino in Colorado.
The company filed for bankruptcy reorganization July 12 in Las Vegas and officials said a group holding some of its $290 million in debt and liabilities would take it out of bankruptcy. That group is led by longtime gaming and hotel industry executive Barry Sternlicht, who runs Starwood Capital Group.
In its earnings report, Riviera Holdings said its Las Vegas property continued to be hard hit by the recession that has deterred visitation to Las Vegas; as well as the oversupply of hotel rooms in the U.S. gaming capital.
Net revenue at the 2,075-room Riviera Las Vegas in the quarter was $22 million, down from $24.9 million in the year-ago period.
Riviera Las Vegas casino revenue for the 2010 quarter of $10.8 million tumbled 12 percent on a year-to-year basis while room revenue of $8.5 million was down just 1.6 percent from the similarly-weak 2009 quarter.
The average daily room rate in the quarter of $54.76 was down $3.26 or 5.6 percent. But occupancy improved from 76.5 percent to 84.6 percent.
"We continue to face challenges maintaining and growing our ADR (average daily room rate) due to increased competition as a result of additional hotel rooms and increased convention space and due to the effects of the weak economy," Riviera Holdings said in its report.
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Start by getting rid of the MOST grumpy, disgruntled dealers and bartenders in town. That may help.
Don't get me wrong, I'm extremely tolerant of such things, but the Rivera is worst in town, hands down.
The Riviera long ago lost it's shimmer, all that remains is the buildings which are merely a facade . I wouldn't invest another cent into this place, Tear it down bedbugs and all..
When I read that the Riviera lost 4.2 million dollars in this "improved" three month period, it finally sunk in that the investors/owners are losing serious money.
I hope that emerging from bankruptcy with lower debt will allow the semi-new owners to start making profit.
If life were fair, Carl Icahn and Boyd Gaming would be made to pick up some of the Riviera's quarterly loss for their separate but similar decisions to leave the Fountainebleu and the Echelon skeletons making the north end of the Strip look like something out of Apocalypse Now.
burn it down, they already busted the place out
Time to IMPLODE!! The place is a dump!
What does the Riviera do to market itself to locals? If they are losing out-of-town visitors due to oversaturation of hotel rooms, why not tap the locals market? As a Las Vegas resident this hotel has never given me a reason to step foot inside of it. Heck it has never even bothered to make me aware that it even exists.
$290 million is a lot of debt to have when your earnings are -$4.2 million per quarter ROFL. Good luck to the new owners.
When u aren't making any money,the only way to pay the existing debt is finding more credit somewhere else.U know, pay off one credit card with another card.Sorta like this whole country is doing,kicking the problem further down the road until an even bigger debt explosion occurs!
i wonder how many of their dealers speak english ?
That is a valid point,roguerunner. Certainly the case at Harrahs, Sands and the MGM. I think that debt expolsion has already started and the operative word is STARTED. Stations paid monsterous attorney fees to figure out the answer and that is to enrich lawyers and the top brass at the expense of the little guy trying to invest in his retirement account for the possibility of retirement.
So basically, the cancer is in remission, but the patient still has full blown AIDS.
No,sort of like treating an alchoholic with a fith of Jack Daniels!He feels better because he delayed the hangover and the D. T 's,but is a little closer to death anyways!
This place was awful. There's something about the place that reminds me of my horrible childhood.
NO! NO! NO!
Implosion is NOT the answer! Unless you are willing to make the North Strip a deserted, uninhabited wasteland. Haven't we learned anything from the eradication of the Frontier, the Sands and WestWard Ho? The problem is comparing the North Strip to (and competing with) the newer, upscale resorts. THERE IS NO COMPARISON OR COMPETITION!!
What the North Strip needs is 'difference'. Which means... different room rates, different entertainment, different food choices/prices, different gaming options/results, etc. A moderate refurbishing of CircusCircus, Riviera, Sahara and a low-to-moderate offering of Echelon Place could be an extremely attractive alternative to the current over-the-top gaming palaces. Of course, I don't know how Fountainbleu would fit into this neighborhood.
If possible, let us not 'destroy' anymore of the Strip but rather, revamp, refurbish and revitalize. I LOVE YOU VEGAS!
samjung23;It wasn't Liberace was it,I hope.
Vegas is done.
When one of your major headliners is a ventriliquist you are just a pale imitation of "Entertainment Capital of the World".
tvegas;I guess we would have to be a REAL dummy to go in there now!
Biscuit -
I completely agree! I stayed there a couple of years ago. The room was clean, housekeeping good.
The casino has plenty of natural light facing the strip. That being said...I wish they would improve the food court area and especially the large bar area. It's a great asset that is run by some grumpy bartenders.
Put some money into the place. Reopen the casino rooftop pool (why is it closed anyway?). Give it some life and energy.
Best neon remaining on the strip!
I stopped by in July. While it is a different crowd, the Riv had more of a 'fun' vibe than Aria.
I stayed at the Riv during my second Las Vegas trip in 1973. Stayed at LaConcha on the first trip. Really enjoyed the lounge acts and learned how to play BJ. I could play all night with one and two dollar 3:2 single and double deck games.
Would walk across the street and play at the Stardust and eat there. Had the Dean Martin at the deli. Good memories.
True, there are more rooms available on the strip but not much competition. Case in point: City Center. People go there but not many go back. The Riviera has the BEST lights on the strip! The rooms are clean. Great variety of lounge acts and slots! The Riv helped build Vegas! It's great!
Would like to believe the Riviera, like surrounding properties and the downtown area, possess an element of nostalgia appeal -- unfortunately one can't reasonably expect the continuation of operating losses to last -- how long is anyone's guess but the near future looks grim.
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I found an internet rate for the Riv on a Saturday night in October at 40 dollars plus tax plus energy surcharge. This rate with all add-ons is just too good to resist. So I booked this one night at the Riviera and will put it to the ultimate test. I don't expect anything, as 40 dollars and the taxes is a true bargain. Who knows, I might even invest a little bit of my money playing poker at the Riviera, celebrating the good old times of the once prospering Las Vegas Strip.
From Switzerland