The new casino space at the Hard Rock Hotel in Las Vegas Monday, December 28, 2009.
The Hard Rock hotel-casino endured another quarter of declining room revenue during the final three months of 2009, even as it expanded with a new luxury tower and larger casino.
Property manager and co-owner Morgans Hotel Group Co. of New York today reported a fourth-quarter loss of $53 million or $1.78 per share, a deterioration from the loss of $39 million or $1.32 in the year-earlier period.
With the recession deterring travel to its 12 hotels in the United States and London, revenue fell from $74.7 million to $64.3 million.
"The global economic downturn has had a significant adverse impact on the hotel industry and it continues to be very difficult for Morgans to predict what will happen in the future, especially given the short term booking patterns and transient nature of the hotel business in addition to a still uncertain economic environment,’’ Morgans said in today’s report.
At the Las Vegas Hard Rock, occupancy was off 1.6 of a percentage point to 84.2 percent. The average daily rate tumbled 23.7 percent to $113.07 and revenue per available room fell 24.9 percent to $95.20.
During the quarter, the Hard Rock opened the 374-suite HRH Tower and its expanded casino. The property’s pool expansion is due to open in the second quarter.
The declining performance in Las Vegas was not unexpected given the recession.
MGM Mirage, for instance, last week said the average daily room rate at its Mandalay Bay resort on the Las Vegas Strip fell 23 percent to $153.
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