VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
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IN BUSINESS GAMING RIVIERA, LAS VEGAS HILTON POST QUARTERLY LOSSES By Steve Greensenior staff writer The recession and the over-supply of hotel rooms in Las Vegas continued to punish the Las Vegas Hilton and the nearby Riviera during the fourth quarter, newly fi led fi nancial reports show. The bankrupt Riviera Holdings Corp., owner of the Rivieras in Las Vegas and Black Hawk, Colo., said in its annual report that the 2,075-room Las Vegas property generated net revenue of $79 million in 2010, down from $92 million in 2009. Investors led by fi nancier Barry Sternlicht, the founder of Starwood Hotels & Resorts Worldwide, are acquiring Riviera Holdings through the bankruptcy process. In the fourth quarter, the Hilton lost $7.365 million vs. a loss of $8.223 million in the year-earlier quarter. Net revenue of $46.7 million was down from $50.2 million. The Hilton’s owner, Colony Resorts LVH Acquisitions LLC, includes investors affi liated with Colony Capital LLC and Goldman Sachs & Co. “The company is evaluating a range of fi nancial and strategic alternatives in addressing trends in the company’s operating results and fi nancial position. These alternatives include refi nancing, restructuring the company’s fi nancial obligations or the infusion of capital by ownership,” a company statement says. LOSING MONEY 14.3% The percentage decrease in the Riviera’s casino revenue for the year (to $35.3 million). Room revenue also dropped 5.9 percent to $33.4 million even as occupancy improved to 81 percent from 77.4 percent in 2009. $34 million The amount the Las Vegas HIlton lost in 2010, up from $28.9 million in 2009. The Hilton said its room revenue remained steady from 2009 to 2010 but that its casino took a hit from $80 million to $67 million. It also said an unfavorable win percentage, especially on Super Bowl Sunday, produced a shortfall in 2010 compared with 2009. TOURISM REPORT: VISITORS SPENDING MORE HERE, STAYING LONGER THE NUMBERS By Amanda Finnegan staff writer The average Las Vegas tourist spent more and stayed longer in 2010 compared with a year earlier, a positive sign for the city’s ailing tourism industry. The Las Vegas Convention and Visitors Authority (LVCVA) released its annual visitor profi le study Thursday after tracking the habits and behaviors of Las Vegas tourists. Several of the numbers in the report improved from 2009. The report indicates the average visitor to Las Vegas in 2010 was likely to be married (79 percent), earned more than $40,000 per year (81 percent) and was employed (66 percent). More than 25 percent of all Las Vegas visitors were retired. About 71 percent of all Las Vegas visitors in 2010 were older than 40, with the average age at about 49. In 2010, 59 percent of all visitors traveled by ground and 41 percent arrived to Las Vegas by plane, according to the LVCVA report. Visitors stayed an average of 3.6 nights and 4.6 days, both of which are up. During their stay, visitors paid an average of about $80 per night for their rooms, up from $76 in 2009, but down from 2006 -08. But the report also states that while in Las Vegas, about 80 percent of visitors in 2010 gambled, down from 87 percent from 2006. 2.9 The average number of hours visitors who gambled spent at the tables or slots in 2010, spending an average of $466 (both numbers are down from recent years). 16% The percentage who purchased a package, at an average cost of $651 (up from $640 in 2009, down from $747 in 2008). $256 The amount the average tourist spent on food and drinks (up from $250 in 2009). 2.4 The average number of people per party in 2010. 7%The percent who traveled with children. 18% The percent of fi rst-time visitors ⁙ | 4 APRIL 2011 | 19