ccupancy at the Las Vegas property fell from 89.3 % to 77.5 %. Average daily room rates dropped more than 15 % during the year-over-year period from us$ 135 to us$ 114. The Hard Rock added more than 865 rooms to the property this year in conjunction with a us$ 750 million expansion project.
Earlier today, Frederick Kleisner, CEO and a director for Morgans, told the state Gaming Control Board that the company has seen a pattern of event-driven demand and the driving of higher rates in New York, Los Angeles and Miami. Kleisner has been filling in as general manager at Hard Rock since former general manager Randy Kwasniewski died in March.
Company-wide, Morgans reported a net loss of us$ 16 million in the first quarter of 2010, compared to a net loss of us$ 10.6 million in the same period of 2009. “Our first quarter results reflect an improving environment and a strong turnaround in our business versus the same quarter last year. Importantly, our performance underscores our belief that we are well positioned to come back faster than the overall industry,” Kleisner said.
Revenue grew to us$ 53.4 million in the first quarter of this year from us$ 51.3 million in the same period of 2009. Morgans Hotel Group has ownership in 12 properties in New York, Miami, Los Angeles, San Francisco, Boston, London and Las Vegas. Hard Rock is a joint venture between New York-based Morgans and private equity firm DLJ Merchant Banking Partners, an affiliate of Credit Suisse.