Cosmopolitan quarterly loss narrows

Casino revenues continued to trail food, beverage and hotel revenue. But, the us$ 44.3 million in casino revenues, was up 96.9 percent from the us$ 22.5 million posted in the third quarter of 2012. The company attributed the increase to its table hold percentage of 16.1 percent, which easily surpassed its expected range of 10 percent to 14 percent.

Table game hold for the third quarter of 2012 was 4.4 percent, The Cosmopolitan’s parent company, Nevada Property 1, said in a quarterly earnings report. The Cosmopolitan operates a 110,000 square-foot casino with 1,374 slot machines and 101 table games.

“We also continue to focus our efforts on increasing the volume of slot play through leveraging our unique Identity membership program, building our database of slot customers and expanding our alliance program,” the company said.

The Cosmopolitan is expanding its table game offerings with the expansion of the Bond Bar near the property’s northeast Strip entrance. The project is expected to be completed by December.

The Cosmopolitan will open its multiuse center named The Chelsea on Dec. 31, while its new 23,000-square-foot combination restaurant, bar, club and show named Rose.Rabbit.Lie is also expected to open by year’s end.

The Cosmopolitan’s third-quarter hotel revenue grew 11.7 percent to us$ 66.8 million from us$ 59.8 million a year earlier, as the average daily room rate jumped quarter-over-quarter to us$ 268 from us$ 257.

The quarterly occupancy rate was 91.5 percent, up from 85.7 percent.

Third-quarter revenue in the hotel-casino’s food and beverage operations declined 1.3 percent to us$ 81.3 million from us$ 82.4 million a year earlier. Entertainment, retail and other revenues rose 0.5 percent to us$ 8.86 million, from us$ 8.81 million a year earlier.

Net revenues for the third quarter were us$ 170 million, up 17 percent from us$ 145.3 million a year earlier. The Cosmopolitan sits on 8.7 acres on the Strip between Bellagio and CityCenter.

As of Sept. 30, Nevada Property 1’s loan from Deutsche Bank was us$ 3.47 billion, down from us$ 3.53 billion last year. The Cosmopolitan’s quarterly report with the Securities and Exchange Commission didn’t include any updates about contract negotiations with the Culinary union. Negotiations have stalled between the Culinary and The Cosmopolitan.

Both sides have been unable to agree on job security, health care and wages. Some 120 union workers were arrested on Nov. 1 during a protest on the Strip that later entered the hotel-casino.