Tuesday, 15 November 2011

Las Vegas hotel failing to attract gamblers

One of Las Vegas' newest hotels is said to be struggling for a fundamental reason - its lack of gamblers. The $3.6bn Cosmopolitan Hotel has reported a loss of $58.4 million in the third quarter of the year.

Hotel revenue for the Cosmopolitan Hotel during the third quarter was $49.3 million, food and beverage revenue at $68.9 million and gambling revenue stood at a figure of just $23.8 million. The issue with the gambling revenue lies in its 'hold percentage' or the amount it makes from gamblers which stood at 7.6%. This figure lies well below industry norms and projections of between 12-15%. The Cosmopolitan hopes that its new areas for high rollers 'The Talon Club' will reverse these figures and provide income on a similar level to other hotels on the strip.

Further reasons for the third quarter loss include costs attributed to promotion of the new property in a highly competitive market during the recession.

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