n its annual report, Tropicana Las Vegas Hotel and Casino said 2010 net revenue of US$54.2 million was down from US$77.5 million in 2009.
The operating loss for the property on the Las Vegas Strip, excluding a big asset write down charge in 2009, grew by US$17.2 million to US$43.8 million in 2010.
The Tropicana said 2010 casino revenue of US$25.6 million was down 25 % while room revenue of US$19.8 million fell 15 % and food and beverage revenue tumbled 39 % to US$10.4 million because of cafe and buffet closures tied to the renovation.
Tropicana reiterated a common concern in Las Vegas: That the oversupply of hotel rooms in the city will keep depressing room rates.
"Las Vegas market has seen an influx of hotel room inventory as a result of the opening of the Cosmopolitan Hotel in December 2010 with 2,000 of its approximate 3,000 hotel rooms available and CityCenter by MGM Resorts International in December 2009 with approximately 4,400 rooms. The increase in hotel room inventory has resulted in increased competition leading to a lower average daily room rate and hotel occupancy which translates into lower room revenue," the company said.
The Tropicana, controlled by Toronto investment house Onex and gaming executive Alex Yemenidjian, said in a report that its US$147 million renovation project should be completed this summer.
The renovation, launched in 2009, has already included updating of more than 1,300 rooms and suites, remodeling of the casino, reconfiguration of the pedestrian bridge from the MGM Grand hotel-casino, opening of Cafe Nikki and improved food and beverage outlets; and renovations of the convention center and pool area.
Jobs remaining to be completed include opening Club Nikki and Nikki Beach Club this spring, opening the casual dining South Beach Market Place venue, opening a poker room, designing new outdoor signage and the facade and renovating restrooms throughout the property.