Monday, May 17, 2010 | 8:25 a.m.
Riviera Holdings Corp., owner of casinos in Las Vegas and Colorado, today said it lost $4.5 million as revenue fell in the first quarter.
The loss, amounting to 36 cents per share, compares to a loss in the year-ago quarter of $1 million or 8 cents per share.
Net revenue of $30.8 million was down from $34.7 million in the year-ago quarter.
Riviera today reiterated that it's in default on debt obligations and continues to negotiate with lenders to refinance or restructure its more than $227 million in debt. If it's unable to do so, it will likely file for Chapter 11 bankruptcy reorganization, Riviera said.
In the first quarter, revenue at the 2,075-room Riviera Las Vegas of $20.5 million was down from $24.4 million in the 2009 quarter. At the Riviera in Black Hawk, Colo., with 750 slot machines and a dozen gaming tables, revenue of $10.3 million was up from $10.2 million.
Amid tough competition on the Las Vegas Strip, Riviera said its room revenue there of $8.4 million tumbled 18.4 percent as the average daily room rate fell about 20 percent to $55.69. Room occupancy of 82.2 percent was up from 76.8 percent.
"We believe that due to a number of factors affecting consumers, including but not limited to a slowdown in global economies, contracting credit markets and reduced consumer spending, the outlook for the gaming and hospitality industries remains highly uncertain. Based on these adverse circumstances, we believe that the company will continue to experience lower than expected hotel occupancy rates and casino volumes," Riviera said in its quarterly 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.