Stratosphere parent company reports $17.4 million loss
American Casino & Entertainment Properties LLC today reported it lost $17.4 million in the fourth quarter as revenues declined at its Las Vegas properties, especially the Stratosphere.
The fourth quarter result was slightly better than a loss of $17.6 million in the same quarter last year. Net revenue decline 1.9 percent to $79 million, from $80.5 million for the same period last year.
In its earnings report, American Casino said the Stratosphere experienced a 4.2 percent decrease in net revenue to $34.6 million on lower room rates and spending by guests.
Occupancy of 89.4 percent was up compared to 86.8 percent in 2009. However, the Las Vegas-based company noted some of its rooms were out of service for remodeling in the fourth quarter of 2010.
The two Arizona Charlie’s properties experienced an overall decrease in net revenues of 3.2 percent in the fourth quarter.
“The Las Vegas local market continues to be impacted by a difficult economy, high unemployment and heavy promotional activity by our competitors,” the company said in a statement.
The Aquarius in Laughlin experienced a 4.1 percent increase in net revenues year-over-year for the fourth quarter. The hotel and gaming company attributed the increase to “targeted marketing programs.”
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.