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Wednesday, Feb. 23, 2011 | 8:31 a.m.
Net revenue tumbled 30 percent at the Las Vegas Tropicana hotel-casino in 2010 because renovations there required temporary closures of hotel rooms, restaurants and parts of the casino floor, the company reported today.
In its annual report, Tropicana Las Vegas Hotel and Casino Inc. said 2010 net revenue of $54.2 million was down from $77.5 million in 2009.
The operating loss for the property on the Las Vegas Strip, excluding a big asset writedown charge in 2009, grew by $17.2 million to $43.8 million in 2010.
The Tropicana said 2010 casino revenue of $25.6 million was down 25 percent while room revenue of $19.8 million fell 15 percent and food and beverage revenue tumbled 39 percent to $10.4 million because of cafe and buffet closures tied to the renovation.
Tropicana in today's report reiterated a common concern in Las Vegas: That the oversupply of hotel rooms in the city will keep depressing room rates.
"The unprecedented and challenging global economic conditions of the last few years have negatively impacted our results of operations by affecting visitor volume and overall consumer discretionary spending. Although there has been a slight increase in visitor volume to the Las Vegas market in recent months, consumer spending continues to remain low," the company said. "Corporate spending on conventions and business development remains at levels lower than experienced in the past in response to the current global economic conditions. These and other uncertainties have and could continue to adversely affect our results of operations.
"In addition, the Las Vegas market has seen an influx of hotel room inventory as a result of the opening of the Cosmopolitan Hotel in December 2010 with 2,000 of its approximate 3,000 hotel rooms available and CityCenter by MGM Resorts International in December 2009 with approximately 4,400 rooms. The increase in hotel room inventory has resulted in increased competition leading to a lower average daily room rate and hotel occupancy which translates into lower room revenue," the company said.
The Tropicana, controlled by Toronto investment house Onex Corp. and gaming executive Alex Yemenidjian, said in today's report that its $147 million renovation project should be completed this summer.
The renovation, launched in 2009, has already included updating of more than 1,300 rooms and suites, remodeling of the casino, reconfiguration of the pedestrian bridge from the MGM Grand hotel-casino, opening of Cafe Nikki and improved food and beverage outlets; and renovations of the convention center and pool area.
Jobs remaining to be completed include opening Club Nikki and Nikki Beach Club this spring, opening the casual dining South Beach Market Place venue, opening a poker room, designing new outdoor signage and the facade and renovating restrooms throughout the property.
Third parties, in the meantime, are developing an expanded race and sports book, a spa and the new "The Las Vegas Mob Experience" attraction.
Tropicana Las Vegas sits on the south-east corner of Tropicana Avenue and Las Vegas Boulevard, an intersection which has the most adjacent hotel rooms in the world, also making it one of the most busy. The hotel has 1,658 rooms, three restaurants, a 62,011-square foot casino and a spa.
The Tropicana's five-acre pool complex stretches throughout the center of the the hotel/casino and remains it's most recognizable feature. It features swim-up blackjack during the summer months, a swim-up bar, dining areas and a wedding chapel. The Tropicana is also home to Brad Garrett's Comedy Club. For pre-show dining, take advantage of one the casino’s dinner and a show packages or just head over to Cafe Nikki, Biscayne Steak, Sea & Wine or Bacio Pasta & Vino.
I have been inside their newly renovated casino of late and I must say it's awesome! Don't know about the looseness of the slots because I don't play them but the decor and lighting is excellent!
I wont go back to play until they invite, fruit basket and wine required. I used to stay there, spending quite abit then made these changes. Now Red Rock comps all of my rooms and meals plus they give some spending money.
The casino does look great but I just don't win anything there. I've played there a few times this year and zero.
Horrible financial results, they took a major hit. I have never stayed or played there. At least they are putting money into the place for renovations and are trying to make some positive changes, as opposed to cutting back on maintenance and renovation etc., thereby in essence cannibalizing their properties as some Vegas casinos are doing. Either way it's going to be a tough road for them in their market segment.
So basically in a nutshell they can't afford to spend money on upgrading the hotel but will keep operating at a loss!! Who's running this place and making these decisions anyways?
At least they are trying,I will definitely go there and check it out on this year's visit. I wish them the best of luck!
I stayed there a couple of years ago and the tv didn't work. They tried to fix it and finally said the cable to the room was messed up. Instead of offering another room, the said "too bad" I haven't considered them since.
Spending $146 Million for renovation in a bad ecomony for some kind of "Theme" is kind of dumb. Tourists are not attracted to Themes..not anymore. Threre is nothing in the way of entertainment to attract people and keep'em there. Will have to wait to see the Mob Museum would turn things around for them.
I may stay there again just to see what the rooms are like. I used to have a credit line with them I am not sure if it is still active. I do not think any "Vegas" room can compair with the "Palaazo" Suits facing the strip as high up up as you can get. Our last severalstays have been with the "Palazzo". I was offered a comp at the Wynn's but did not take advantage of them because of the Wynn's business practices.
WE have stayed at thr Trop every Spring for the last 7 yrs. We are def not whales but our stays have always been compt and always have a fruit and wine basket waiting for us on the 1st day. We have never paid a cent except what we put in the slots. we even get to the airport and back in a limo. Maybe they think we are someone else. lol. We were there last yr during the renovations but had no problems They honor all our requests with a smile. I would never stay anywhere else.
Shoulda brought the birdman act back. Another poor business decision.
place looks great and will do even better when club opens.
I would just like to answer a few comments posted to help ease everyone's mind. We are not renovating for a new theme, we are renovating because the property needs and deserves it. The new theme is just worked into the renovations to show that we really are changing everything with the new ownership. I do apologize for the TV issues two years ago and the poor CS received. I assure you those are issues of the past. I do apologize that we lost a valued player to Red Rock, however our comps are based on play. If it has been awhile since you have been here, that might explain the lack of comp offers. I would be happy to personally assist anyone who has more questions or would like to visit. nmarshall@troplv.com
I had the pleasure of visiting the Tropicana on my last visit to Vegas in November, 2010. I WAS PLESANTLY SURPRISED! The Trop looks marvelous... so welcomely marvelous that my friend and I played slots and had dinner there (fabulous Italian restaurant on the 2nd floor). My experience was so enjoyable that I will stay at the Trop on my next visit.
Someone mentioned that no Vegas room compares to the Palazzo suites facing the Strip. Well, the Trop is not in the same class as the Palazzo, and it need not be. Vegas surely does not need another 'high roller' joint, but rather, more renovating and refurbishing of long-established places. This way of thinking would have certainly saved the Stardust and could save the Riviera and Circus Circus. We less-than-high rollers also need nice places to stay and play.
THREE CHEERS FOR THE TROP! Lots of future success!