Vegas Cosmopolitan Hotel Loses 140M in 1st Year
Have you ever been in a situation that made you feel that you were thankful that you were not in the eye of the storm? Well that was my feeling when I got to know about the news about the Cosmopolitan Hotel and Casino in Las Vegas. The past year has been one that the owners of the Cosmopolitan would never forget as they incurred a loss of $139.5 million.
Even though the hip casino opened its doors to the public with some happening A-listers like rapper Jay-Z and rocker Brandon Flowers the magic did not work out in the revenue department.
In a report filed on Wednesday, Nevada Property 1 LLC reported that they suffered loss in the year of 2010 even though they managed a profit of $28.6 million in the year 2009. If you are wondering what might have caused the hefty loss, the company has explained that the $116.5 million preopening expenses has been a major contributor for the loss. The marketing campaign alone had cost the company a massive $42 million. Even though the Cosmopolitan is estimated to be worth $3.9 billion, when it opened in December 15, this current loss will certainly be felt by the company. However, they managed to gross $4.2 million in room rates alone throughout the year for their 2,995 rooms.
Even though the reopening costs were blamed as the major cause of loss it makes one wonder because this is a casino that made $4.3 million from gambling in a little less three weeks since it’s opening in 2010. Well as for me I am thinking what is going to happen regular land based casinos once state and federal legislations decide to legalise online gambling? Let us just hope that the Cosmopolitan recovers from its loss to put up a fair fight with the rest of the casinos, in the future.