CityCenter trims its losses in Las Vegas
The multibillion-dollar CityCenter entertainment complex in Las Vegas, jointly owned by Dubai World and MGM Resorts, managed to narrow its operating losses in the first quarter of this year, MGM Resorts has reported.
The US company said its operating losses in CityCenter fell from US$119 million (Dh437m) in the first quarter of last year, including an $86m "residential inventory" impairment charge, to $6m in the same period this year. MGM Resorts said there were signs of recovery in the Las Vegas market.
"Results from joint ventures reflected record quarters at both MGM Macau and CityCenter," said Jim Murren, the MGM Resorts International chairman and chief executive.
"Our belief that the Las Vegas recovery is under way is supported by our first-quarter operating results and our positive early second-quarter trends."
But CityCenter recorded a $24m loss "on debt retirement related to the write-off of debt issuance costs in connection with the refinancing of its credit facility in January 2011", the company reported.
It said net revenue from CityCenter's operations increased by 46 per cent to $262m in the first quarter compared with $179m in the same period last year.
Half of CityCenter Holdings is owned by Infinity World, a wholly owned subsidiary of Dubai World. The development cost $8.5 billion to build.
Since its opening more than a year ago, the casino and hotel development has been operating in a challenging environment.
CityCenter's main attraction is its 4,004-room Aria gaming resort, which opened in December 2009.
Aria's occupancy levels were 86 per cent in the first quarter and it had average room rates of $201, resulting in revenue per available room of $172, a 41 per cent increase on the same time last year.
The Las Vegas Strip complex also has luxury non-gaming hotels including Las Vegas's first Mandarin Oriental. There is also a 46,450 square metre retail and entertainment district and a $40m fine art collection.