Las Vegas Hilton Broke?
Despite being a Sin City institution for over 40 years, the Las Vegas Hilton is in major trouble after posting big second quarter losses, and admitting that they haven’t paid the interest on their loans. And all of these problems have people wondering if the Las Vegas Hilton is going broke.
Trouble began mounting when the Hilton lost $29 million in 2009, and followed that up with losses of $34 million in 2010. Unfortunately, nothing has changed for the beleaguered Las Vegas Hilton since they posted an additional $8.86 million in losses last quarter. A big reason for the losses is that many of the Hilton’s 2,950 rooms are staying empty, while the casino actually lost $1.2 million to big slots winners in the second quarter.
As if the headaches aren’t already big enough for this casino, they were recently notified by the Hilton Hotels Corporation that their license to use the “Hilton” name won’t be renewed. Colony Resorts, which owns the Hilton Las Vegas, is currently scrambling to find a new name.
Colony Resorts released a report about their heavy losses over the past couple years, and here is some of the key info from the report:
In 2010, table games revenue decreased approximately 19.6 percent and slot revenue decreased approximately 16.4 percent compared to revenues in 2009. The table games and slot volume decreased primarily due to lower spending by gaming visitors and fierce competition in the Las Vegas market
The economic downturn limited the number of visitors. Multi-location competitors offered gaming guests higher credit limits, longer payment terms, increased player incentives and enriched casino marketing programs. Similar programs were considered by the hotel but not implemented because they did not meet our profitability benchmarks. Race and sports book wagering during 2010 was similar to 2009 levels, but an unfavorable win percentage, especially on Super Bowl Sunday, produced a shortfall of win in 2010 compared to 2009