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StumbleHooters loses $3.9 million, says bankruptcy still possible
Sun file photo
The Hooters resort-casino on the Las Vegas Strip.
Friday, May 14, 2010 | 6:25 p.m.
Map of Hooters
Hooters
115 E. Tropicana Ave., Las Vegas
The privately held Hooters hotel-casino in Las Vegas lost $3.9 million in the first quarter as revenue fell.
The loss was about even with the $4 million lost in the first quarter of 2009.
Net operating revenue of $11.3 million in the 2010 first quarter was down from $13.3 million in the year-ago quarter.
Company owner 155 East Tropicana LLC issued the same warning Friday it has issued the past few quarters about the 696-room property’s financial condition.
"The company does not believe it will be able to generate sufficient cash flows from operations to fund its financial commitments over the next year and cannot provide any assurances that it will be able to raise additional capital," Hooters said in its quarterly report, adding it may need to see bankruptcy protection if creditors accelerated payment demands.
The property on Tropicana Avenue east of the Las Vegas Strip said hotel revenue in the first quarter fell 7.8 percent year-over-year as the average daily room rate fell from $52 to $46.
Amid stiff competition because of an oversupply of hotel rooms, Hooters did manage to lift its occupancy rate from 83 percent in the first quarter of 2009 to 86 percent for the 2010 first quarter.
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Better headline: Hooters sags in 1st quarter.
lol Sandy
"bankruptcy possible"?
How about "inevitable"!
Tough location with terrible access from the east off Tropicana, a brand they allowed to be tarnished with cheap booths and gimmicky vendors, a tired physical plant, and a lack of coordination and support from Hooters nationwide which could have been a real feeder network. On the floor managers have done a good job while executive floor management has struggled with financial restrictions and logistical challenges. All of the above exacerbated by an unforgiving economy and desperate competitors. Still its a "live joint" and fun to go to.
This placed was doomed from the days it opened its doors. The ownership rushed its opening a few months to be open for the football season (and in turn closed down the Hooters on Sahara; same owner) The management they had hired there had no idea how to run a casino and honestly, relied too much on the name Hooters to carry it. The food isnt all that great, and they did nothing to the rooms there except change the bed covers and slap up a few coats of orange paint. Honestly, I wouldnt be sad to see this place dissapear. It never seems busy and the dealers there tend to be on the unplesant side. It was a mistake from the get go
Like Debbie Reynolds and other past "off strip" casino failures, it's 99% location in this market. Debbie Reynolds had a great place but could not overcome the location problem (also was a place that did not attract the young spending crowd who had no idea who Debbie is). Hooters is in the same boat. A nationally respected name, at least by the 20's & 30's crowd that every business seems to want cannot overcome the location and access problems.
Is the food there as good as it is at Sunset Station or was on W. Sahara? We usually go to Sunset if we want to eat at Hooters.
Location excuses are BS, this property is poorly run, and a "motel" rated type of place with beer bellied smelly biker types ogling the for the most part unattractive Hooters girls they employ these days. If location were the issue, places like Hard Rock, Palms, and Orleans would have shut down years ago..
Looks like an "overflow" casino of the MGM Grand to me. People not willing to pay the high room rates at the MGM have the chance to check in at Hooters and tumble across the street to get their gaming going on at the big casino. There is a little problem, however: MGM has fairly low rates at this moment , so why staying in the "overflow" casino if it's not competitive enough?
Do they still have a poker game at the Hooters?
From Switzerland
It would be a shame for them to go under. I have stayed here many times because I like the Hooters brand, it's room rates are great and it's close to the airport, the casino always seems busy and the pool is ok. I will admit the rooms need a little updating and the food options are few but the food at this Hooters is no different than any other. I would rather stay here than a place like the Bellagio.
Bore-US-They've been in trouble since they opened so your reasoning is flawed once again.
And the posters who say it's a bad location: It's only a few hundred feet from one of the busiest intersections in the world.
The rooms at this place are disturbing. No one would every pay to stay there once they saw the bathroom and carpet.
And it's LOUD! The music from the pool starts at 10am and can be heard in every hotel room on that side of the building.
environ, location issues are still valid, the poorly run comment you made is well taken and adds to the poor location as to why the place isn't doing well and probably will be short lived. I haven't been there since the San Remo days, so I cannot comment on how it's run, other than to say that seems to be the consensus of everyone who actually has been there. Bad location is hard enough to overcome. Not giving good service to those who do venture on over is certainly bad business. If the place is still open next time we visit, we'll have to check it out. (but not check in, based on the comments you and others have about the rooms).
Logic, Yes, it is only a few hundred feet from a very busy intersection, problem is, most of the tourists traveling through the intersection are looking to the North or South for their next stop and not enough of them look to the East. Even fewer of them will venture on over. People these days are lazy.
MGM Grand is the bomb. Why stay anywhere else?
My guess is the mortgage payment is killing them. Looks like they paid 65mil for a property now valued at about 17mil if I read my public information correctly. Slow economy and too small of a casino don't help either.
The presdent of Hooters should have gone undercover at this casino instead of Hooters restuarants on that show Undercover Boss.
Actually, I take my comment back. Even at 65 mil, their monthly payment can't be more than 500K with taxes. So at 1.5 mil per quarter blown on that, they still lost another 2.4 million dollars? How do you lose that much money? I'd like to know what/who are the "financial commitments" and "creditors". Sounds fishy.
Hooters doesn't own this casino, it's a collection of people from the San Remo days as well as one of the founders from Hooters. They pay a royalty to Hooters for the branding...
The honest truth in the matter is these people are the reason why it's going to fail, they have sucked this place dry with their lavish pay and lifestyles; don't forget they also got a huge payment when the group they were trying to sell their company too in 2008 couldn't get financing. They split several million dollars while not putting a penny back into the casino.
All one needs to know is they have 700 rooms, a small casino floor, 2 restaurants, couple bars, excuse for a theater, small convention space, a couple small shops and they have a President, a GM and a bunch of VP's. I cannot wait until this group to get thrown out so real business people can run the place, I think a set of monkeys could do better than the retreads of San Remo.
hooter's is a brand that has run its course. we get it. chesty girls and wings. we get it. been there, done that.
it sort of screams "mid life crisis".
location is kind of a marketing "cop out" to be honest. did location help planet hollywood? nope.
if you can create a true niche experience a few blocks off the strip, people will go to your place. hooter's just doesn't have that pull anymore especially in vegas when i can go up to olympic garden and see WAY more for $8.00 beers than i can a hooter's.
Hooters like San Remo before her, will be history before the new year!!
Bring back the KLONDIKE!
stevem, Planet Hollywood, Like Aladdin before it suffers from tne "too far North of Trop, Too far South of Flamingo" syndrome. Some people are just too lazy to walk that half mile. They do seem to be doing a good job marketing to the 20 something crowd. My son loves it there. At least it's a newer place, not run down like some.
Most of these shalky older places like Hooters, etc. cannot compete on rooms when you can get much nicer rooms at many of the newer (not newest) places on the strip like TI or Luxor for under $50.
I think we all agree, the clock is ticking toward the end of this place.
so, by your theory...paris would have gone down the tubes as well?
try again.
drive into any grocery store anchored strip mall in las vegas and there's almost always one storefront that is "now for lease". location can't make up for bad marketing.
From the pictures I've seen they seem to be doing a nice job with the Trop remodel. Especially with catering to the middle end players. Perhaps Hooters will fall into BQ and be picked up by the company that owns the Las Vegas Tropicana. Then if they do well they can expand in the future.
I cannot imagine why I would ever stay at Hooters in Las Vegas.
I would barely consider eating at any of the restaurants, let alone stay overnight at this Hooters branded location.
I agree with an earlier poster, this was a flawed concept from the very first thought of it.
Before moving to Vegas, I stayed several times at Hooters' Tower rooms. Great, clean rooms and VERY attractive girls working as dealers and at the restaurant. Hooters is a great place to stay and party. Hope they stick around.
I saw "Showgirls of Magic" at the San Remo twice. Are magic shows in trouble? I read about Lance Burton possibly leaving the Monte Carlo, and Steve Wyrick is gone along with Scarlett Princess of Magic.
Steve, I'm with you on the bad marketing thing.
PH has some success with their marketing to the younger crowd, It is a nice place, and even though they have some location issues, they get it that they have to offer a product that will attract their desired customer (in their case the young crowd).
Paris has done the same, nice newer place, a bit of a walk from the main intersections, but they do have a targeted audience that supports them enough to get by. Don't they cater to the gay crowd? Not my thing, but no doubt this creates a steady clientelle that will be loyal to their hotel.
In both cases, marketing has overcome some of the issues of the less than perfect location. Hard Rock is another one that markets to a crowd willing to go out of the way to visit their hotel. The pool party thing is pure genious, young drunks spend a lot.
All 3 of them are still losing money, but would be much worse off if their marketing wasn't working to some extent to overcome the location issues. Being clean newer places doesn't hurt either. Hooters seems to offer a lot less than any of the 3 places mentioned.
who would have thought a couple of boobs couldnt run a casino?
close it down and rename casino: Riveria2
That will pack em in
keep it open and jack up the rates to $899.00 night.
Glue 5 stars on the outside of you know where, then
wala! a 5 star hotel that will compete with steve-e-boy
Hate to see it go. I have spent some time and money there. I even won some money there and found the staff excellant.
This and many other casinos will be on their way out in a year.
My best San Remo story: Saw Showgirls Of Magic(TG it was a comp). When I went to valet for my car, no one was there. I was told he was on break and back in 15 minutes!
Turns out the valet was the smartest one because he NEVER did come back!! Finally after about 30 minutes, the brilliant management gave me my keys and I got my car myself.
All of you are correct. Running a casino is a combination of many factors...location, age of resort, amenties, service, marketing, quality of players and of course The Economy. These elements must all come together at once or your patrons will go elsewhere. Big multi-billion dollar Mega-Resorts (called Premium Carpet joints) like the MGM are like small cities and difficult to compete with. They are designed so customers don't have to go anywhere for anything...it's all under one roof. For a small casino, like the aged Hooter's to make-a-buck they have to nitch a particular segment of the market like Station or Coast Casinos that cater to local play. Don't know how the new "M" resort is panning out in the South End of Vegas but they were giving free buffet's for anyone signing up for a players card when they first opened. Will players come back when the promos end? It takes a lot of casino play & years of it to re-coop a billion or more dollars of investment capital!
Close it down. Too damn many places in Vegas anyway. It's all the same just different names, different neon lights and different fake crap
middletoright nailed it. Too much gravy at the top. They need new and fewer management, paid less. It doesn't take rocket scientists to know how to cut costs and it starts at the top.
Make a little money this week. Short the euro and buy DRR. Don't believe me...look it up.
Put the homeless there?
They built all these places on "legal debt", and the interest upon the debt load is what's breaking the corporations.
When the mob built Vegas they also had debt to pay and just skimmed the profits from the casino , which was the easiest way to do it. Now that everything is transparent it's tough to run a place where there are only a few percentages between win and lose.
Sandy...LOL! Many good points here. My main concern was when I finally visited the place in the hopes that I would find a cheesy fun spot, it turned out that there was no fun to be found and the place is actually a DUMP! Too bad, I thought it was a good concept.
Again another joint that can carve out a niche with a few tinkers to the games. You would think that some of these properties would try to compete by offering better games. (single deck at full BJ payouts, single "0" roulette. I know most of the players have no clue but a good number of locals and some tourists would visit if the odds were a bit better.
They can also losen up the credit, why not they have the long arm of the law as their collection agency.
twowayy011...unfortunately Jack Binion is out of the business. Good Food and Good Games for a Good Price are long gone.
Hard to believe that these casinos fight bankruptcy although the tax rate is only slightly over 7 per cent. In most other countries worldwide casinos pay much more than 7 per cent and still remain in business. Could it be that too much debt has been put onto these operations, hence making it a walk on dire straits? Banks should only give loans to casino operations up to a certain degree and the casinos should not be allowed taking the rest of the money needed by issuing junk bonds or issuing new stocks all over and over again. This might help for a casino to have its costs under control and run a perhaps "smaller" but profitable operation.
From Switzerland