Wednesday, May 5, 2010 | 3:15 p.m.
Earnings more than doubled at the Hard Rock Hotel and Casino during the first quarter, one of the property’s joint-venture partners reported today.
The New York-based Morgans Hotel Group said Hard Rock's earnings before interest, taxes, depreciation and amortization grew to $917,000 in the first quarter, from $404,000 in the first quarter of 2009.
Occupancy at the Las Vegas property fell from 89.3 percent to 77.5 percent. Average daily room rates dropped more than 15 percent during the year-over-year period from $135 to $114.
The Hard Rock added more than 865 rooms to the property this year in conjunction with a $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 $16 million, or $1.18 per share, in the first quarter of 2010, compared to a net loss of $10.6 million, or 36 cents per share, 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 $53.4 million in the first quarter of this year from $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.
Sun reporter Rick Velotta contributed to this report.