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.
With its glass, star-lit exterior, visitors can't miss the Riviera when driving down the Strip. As the first high-rise to open on the Las Vegas Strip, featuring a nine-story hotel, the Riviera has seen more than 50 years as an entertainment destination in Las Vegas. Top bill acts like Liberace, Dean Martin and the long-running Splash revue (closed in 2006) have graced its showrooms over time.
The Riviera still offers its share of entertainment options with topless revue "Crazy Girls," a comedy club and "Illusions," starring Jan Rouven.
The 100,000-square foot casino has been featured in many films like "Casino," "Austin Powers" and "21." Although the hotel has passed through a long list of owners over the years it has always held on to it's unique theme (for Las Vegas) in that it lacks any particular theme. It also features a William Hill Race & Sports Book walk-up betting window right off the sidewalk on the Strip.
The Riviera has dining options well covered, from seafood and steaks at R Steak and Seafood, a variety of breakfast, lunch and dinner fare at Banana Leaf Café to an international cuisine at the R Buffet.
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