Operating for about 5 months, the Cosmopolitan in Sin City just can’t catch a break. Back in December when they opened, their initial revenue numbers were good but after counting their preopening and marketing expenses, they had a total loss of $139.5m. That was for 2010. Now I don’t know about you but 9 digit loses are never a good thing.
So far, 2011 hasn’t been sunshine and rainbows for them either. The newest casino-resort in Las Vegas reported a loss of $56.8m for the first quarter of 2011. Though the Cosmopolitan did make $104.9m in its first quarter revenue, that’s still a far cry from the $251.4m the Bellagio brought in or the $225m in revenues from the Aria Resort and Casino in their first quarter.
Alright but let’s look for a silver lining somewhere. The Cosmopolitan said that their restaurants and bars took in nearly $58m, while it had $31m in gambling revenue and more than $34m in hotel room revenue. They also added that table game revenues “increased steadily” during the quarter, and they were focusing on increasing their slot machine play through building a database of customers and using their loyalty program.
Cosmopolitan CEO John Unwin said in a statement, “We are pleased with the key performance indicators: high room rates, strong hotel occupancy and our prominent position in the luxury tier.” He continues, “The upward momentum is a good sign for the resort and the Las Vegas market as a whole.”
At least they see some positives, considering their casino that cost $3.9b to build is valued at just $3.3b 5 months later.