Monday, Nov. 9, 2009 | 10:38 a.m.
The owner of the Riviera hotel-casino in Las Vegas today said it continues to work on restructuring its $281 million debt in hopes of avoiding a Chapter 11 bankruptcy restructuring.
Riviera Holdings Corp., however, said there's no assurance a bankruptcy filing can be avoided as it remains in default on loans and as it reported dismal third-quarter financial results for its 2,075-room Las Vegas property on the Strip.
The Las Vegas Riviera was pounded by the recession, with quarterly revenue falling from $30.2 million in 2008 to $22.6 million this year.
Occupancy at its Las Vegas hotel fell from 87.1 percent to 76.7 percent, while average room rates tumbled 20.8 percent to $59.51.
Riviera Holdings also owns a casino in Black Hawk, Colo., with 750 slot machines and nine table games. Revenue there was up from $10 million in 2008's third quarter to $12 million in the 2009 quarter.
Overall, Riviera Holdings in the quarter lost $4.67 million or 38 cents per share vs. a loss in the year-ago quarter of $3.46 million or 28 cents per share, as net revenue of $34.6 million was down from $40.2 million.
"We believe that due to a number of factors affecting consumers, including but not limited to a slowdown in global economies, contracting credit markets and reduced consumer spending, the outlook for the gaming and hospitality industries remains highly uncertain. Based on these adverse circumstances, we believe that the company will continue to experience lower than expected hotel occupancy rates and casino volumes," Riviera Holdings said in its quarterly financial report.
"As a result of the economic factors and the defaults on the credit facility, there is substantial doubt about our ability to continue as a going concern," the company said.
With its glass, star-lit exterior, visitors can't miss the Riviera when driving down the Strip. As the first high-rise to open on the Las Vegas Strip, featuring a nine-story hotel, the Riviera has seen more than 50 years as an entertainment destination in Las Vegas. Top bill acts like Liberace, Dean Martin and the long-running Splash revue (closed in 2006) have graced its showrooms over time.
The Riviera still offers its share of entertainment options with topless revue "Crazy Girls," a comedy club and "Illusions," starring Jan Rouven.
The 100,000-square foot casino has been featured in many films like "Casino," "Austin Powers" and "21." Although the hotel has passed through a long list of owners over the years it has always held on to it's unique theme (for Las Vegas) in that it lacks any particular theme. It also features a William Hill Race & Sports Book walk-up betting window right off the sidewalk on the Strip.
The Riviera has dining options well covered, from seafood and steaks at R Steak and Seafood, a variety of breakfast, lunch and dinner fare at Banana Leaf Café to an international cuisine at the R Buffet.