Monday, May 10, 2010 | 11:50 a.m.
The Hard Rock Hotel and Casino posted a loss of $26.5 million during the first quarter of 2010 as expenses increased at the newly expanded property, it reported today in a regulatory filing. That loss compares to a $24.3 million loss during the same period of 2009.
The property reported expenses increased by 71.1 percent during the quarter. Hard Rock has added two hotel towers and an expanded casino floor, as well as a new pool, spa, restaurants and nightclubs as part of its $750 million expansion project.
Net revenue increased to $54.2 million from $30 million during the year-over-year period. The company said the increase was primarily due to increases in casino, lodging, and food and beverage revenue.
Casino revenue increased by 54.5 percent to $19 million in the first quarter of 2010, compared to $12.3 million in the same period of 2009.
Lodging revenue increased to $11.9 million during the quarter despite occupancy declining from 89.3 percent to 82.1 percent. Average room rates at Hard Rock, however, increased to $145 from $142.
The property said in the report that management believes the decrease in hotel occupancy was a result of the increase in the number of rooms at Hard Rock and in the Las Vegas market. The Hard Rock added more than 865 rooms to the property this year.
Food and beverage revenues increased by 78 percent to $21.7 million, from $12.2 million during the year-over-year period. The property said in the report that the increase was a result of increased customer volume because of the expansion project.
Hard Rock is a joint venture between New York-based Morgans and private equity firm DLJ Merchant Banking Partners, an affiliate of Credit Suisse. Last week, 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.