CityCenter trims its losses in Las Vegas

CityCenter entertainment complex in Las Vegas, jointly owned by Dubai World and MGM Resort, reports improved performance in the first quarter.

The CityCenter entertainment complex in Las Vegas is jointly owned by MGM Resorts and Dubai World.
Powered by automated translation

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.

More Business news: Editor's pick of today's headlines

Last Updated: May 05, 2011

Aabar takes $1bn stake in Glencore flotation Abu Dhabi's investment vehicle, Aabar, has become the largest participant in the initial public offering of commodities giant Glencore. Read article

Right time for Aabar's move Glencore's flotation is an ambitious move by the Swiss commodities trading giant to flex its muscles further and tap into booming commodities prices. Read article

Cashing in on bin Laden's death Retailers and analysts in the UAE are expecting high demand for new books, films and video games about bin Laden. Read article

Hedge funds regain their status - and $2tn Industry Insights // Louis Gargour, the founder of LNG Capital, a fixed-income firm specialising in European credit, talks about his approach to investing and his view of the markets - with video. Read article

Property sales up and down Dubai estate agents are disputing data showing a 50 per cent decline in home sales in the first quarter. Read article

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.