The Strip’s new Cosmopolitan takes a hit in its first full quarter of operations.
The casino-resort lost $56.7 million despite filing nearly $105 million in net revenue. The numbers do not compare to its top earning neighors, Aria and Bellagio, reported in the first quarter. Bellagio earned $251.4 million in net revenue, while Aria generated $225 million in revenue.
The Cosmopolitan, which opened on Dec. 15, said in an regulatory filing that its revenue produced from gaming was $31 million, while revenue produced at its bars and restaurants was $57.6 million and $34.4 million was generated in hotel room revenue.
On average, a room at the Cosmopolitan cost more than at its top local rival resorts although it had comparable occupancy rates.
Deutsche Bank reported in its 2010 annual report that in 2009 and last year it had written down the value of its investment on The Cosmopolitan by almost $756 million. The hotel-casino is now valued at about $3.3 billion.
[Source: Review Journal]