Cosmopolitan in Vegas loses $54.3M in 2nd quarter 2011

Cosmopolitan in Vegas loses $54.3M in 2nd quarter - BusinessWeek

The Associated PressAugust 15, 2011, 1:37PM ET
[h=1]Cosmopolitan in Vegas loses $54.3M in 2nd quarter[/h]By OSKAR GARCIA

The Cosmopolitan of Las Vegas hotel-casino lost $54.3 million during the second quarter as its restaurants and nightlife continued to pull in more revenue than gambling and its hotel rooms.
The posh Las Vegas Strip resort owned by Deutsche Bank said in a regulatory filing Monday that it had $126.1 million in revenue, including $70.1 million in revenue from its restaurants and bars. Its 100,000-square-foot casino -- which includes nearly 1,500 slot machines and 77 table games -- took in $28.1 million in revenue.
The Cosmopolitan, which cost $3.9 billion to build, said it won slightly less than expected given the amount gamblers wagered during the resort's second full quarter in operation. Officials say the hotel, which opened in December, also plans to open a 15-table high-limit casino area in November.
The resort had nearly $46 million in room revenue with more than 91 percent occupancy, at average rates of $246 per night -- well above the average occupancy and rates of other Las Vegas Strip resorts.
The hotel has yet to open 448 rooms in its west tower, hotel officials said in the filing. Officials said the rooms would be open in September.
The loss was slightly less than the $56.8 million the Cosmopolitan lost during the first quarter. Its revenue was $105 million, led again by restaurants and nightlife.
Quarter over quarter, revenue from rooms, restaurants and bars improved, but gambling dropped from $31 million during the first quarter.
The Cosmopolitan said it settled a class action lawsuit with 427 condominium buyers in April, refunding buyers 68 percent of deposits they made years ago for units in the resort. There are 63 buyers who opted out of the settlement, preserving their rights to either close on the sales or pursue the resort further in court, the company said.
The condo sales would have raised $345.2 million.
As of June 30, 17 people had bought condos at the resort for a combined $16.3 million.
The Cosmopolitan said it had $3.38 billion in long-term debt payable to its owners at the end of the quarter, plus $28.4 million in cash held with the bank.