Vegas Cosmopolitan loses US$56.8m in debut quarter

LAS VEGAS Despite loads of positive buzz and a recovering tourism market, The Cosmopolitan of Las Vegas has posted somewhat disappointing results in its first full quarter of operations.

Cosmo lost US$56.8 million in the first quarter, even though its occupancy rates and ADR—85.7% and US$241, respectively—compare favorably with its high-end competition on the Las Vegas Strip. The US$3.9 billion property generated just US$105 million in revenue during the quarter.

The bulk of its income—about 55%—comes from its food and beverage operations. About a third of revenue is generated from guestrooms, while gaming accounts for a disappointing 30%. Still, the Deutsche Bank-owned resort says first quarter results are more or less in line with overall expectations.

“We are pleased with the key performance indicators: high room rates, strong hotel occupancy and our prominent position in the luxury tier,” Cosmopolitan says in a statement. “This upward momentum is a good sign for the resort and the Las Vegas market as a whole.”