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The valet entrance for the new HRH Tower at the Hard Rock Hotel in Las Vegas Monday, December 28, 2009.
Monday, May 10, 2010 | 11:50 a.m.
The Hard Rock Hotel and Casino posted a loss of $26.5 million during the first quarter of 2010 as expenses increased at the newly expanded property, it reported today in a regulatory filing. That loss compares to a $24.3 million loss during the same period of 2009.
The property reported expenses increased by 71.1 percent during the quarter. Hard Rock has added two hotel towers and an expanded casino floor, as well as a new pool, spa, restaurants and nightclubs as part of its $750 million expansion project.
Net revenue increased to $54.2 million from $30 million during the year-over-year period. The company said the increase was primarily due to increases in casino, lodging, and food and beverage revenue.
Casino revenue increased by 54.5 percent to $19 million in the first quarter of 2010, compared to $12.3 million in the same period of 2009.
Lodging revenue increased to $11.9 million during the quarter despite occupancy declining from 89.3 percent to 82.1 percent. Average room rates at Hard Rock, however, increased to $145 from $142.
The property said in the report that management believes the decrease in hotel occupancy was a result of the increase in the number of rooms at Hard Rock and in the Las Vegas market. The Hard Rock added more than 865 rooms to the property this year.
Food and beverage revenues increased by 78 percent to $21.7 million, from $12.2 million during the year-over-year period. The property said in the report that the increase was a result of increased customer volume because of the expansion project.
Hard Rock is a joint venture between New York-based Morgans and private equity firm DLJ Merchant Banking Partners, an affiliate of Credit Suisse. Last week, Morgans reported a net loss of $16 million, or $1.18 per share, in the first quarter of 2010, compared to a net loss of $10.6 million, or 36 cents per share, in the same period of 2009.
Walter, tighten the slots! ;^)
The economy will bounce back. Government spending created many jobs in the Great Depression, Hoover Dam for example. Some view that as socialism, others as a wise public investment.
Balkingpoints / www
caught between a rock and hard rock.
Not surprising from a rip off casino and not a very special property..
Why would anybody spend $150 a nite off the Strip??? Are the REHAB parties that popular?
reg
Goverment has created part time jobs and spending
to much money that tax payer must pay back.
The only thing hard rock has going for its property is the pool party. I go in the casino
and no people.I go across the street to Terrible
lots of people,WHY.
HRH has been losing money since it opened in 1995. There is now a $590,879,000 accumulated deficit on its balance sheet ( http://sec.gov/Archives/edgar/data/14186... ). It will be sold again within two years time. Peter Morton got out at the top of the bubble, because he knew the price he got was only justified by the bubble, and not the true income generating potential of this scraper (excuse me, property)....
in total agreement with "eccitante" but I think it's sold sooner than two years. I'm guessing they'll milk the pool party this summer, line their pockets as much as possible then sell it. Trust me, there are pure idiots running that asylum.
"Negative Nancy's" totally ignore the increase in numbers. Hard Rock is in a good position when or if Las Vegas recovers.
Story's missing something isn't it?
As they say in real estate: Location, Location, Location. Certainly all of the rosd construction in the area, and their poor parking situation hasn't helped. Unlike Strip properties, Hard Rock is isolated from anything else of interest to the average tourist, Other than the Hard Rock Cafe (which is run by a different corporation than HRH).
They need to immediately increase the admission price of their pool parties by $10. The people who go will still pay it, and it will go straight to the bottom line. I suppose a 20% increase in the cost of the pool cabanas would not be unreasonable either. Of course, this is all easy for me to say, since I am not the customer they are looking for, nor would I ever go to a "rehab" party. But if it makes them money, more power to them.
the properties in Vegas should try to attract more of the twenty-something year olds, party oriented people, as their discretionary income will rise massively in the coming years. also music festivals, rivaling the miami WMC, should be organized to attract more people. the city should become more international destination, try to tap the European market of vacationers, young people that go to places such as Ibiza and Mykonos, tourist that can afford those destinations could be great customers in vegas too
If tghey would do away with the constant non stop loud annoying and deafening hard rock music, they might get more people to return.
They actually have a pretty nice poker room. They have a Sat. afternoon tourney with a good starting stack and reasonable blind structure. Place should be packed. Could not even get one table started in the place it was so dead. Dealer said there location does not allow for walk in traffic and locals avoid the place. Not a good sign when the poker room is so dead.
HRH has a great loaction walking distance to the Paradise Club. Girls Girls!!!