Las Vegas Hilton reports loss, skips interest payments on loan

http://www.vegasinc.com/news/2011/aug/10/las-vegas-hilton-reports-loss-skips-interest-payme/

The Las Vegas Hilton reported another quarterly loss on Tuesday and disclosed it’s been skipping interest payments on a loan, putting it into default status.

The 2,950-room Paradise Road hotel-casino lost $8.864 million in the second quarter vs. a loss of $9.851 million in 2010’s second quarter.

Amid tough competition and an oversupply of hotel rooms in Las Vegas, net revenue of $45.5 million was down from $47.5 million.

Casino revenue of $14.2 million declined 9.1 percent, the Hilton reported.

The Hilton’s table games played unlucky in the quarter, with their win declining by $800,000; while slot play declined due to a slowdown in business. This resulted in a $1.2 million decline in slot winnings from gamblers.

Hotel room revenue was steady at about $19.3 million, while food and beverage revenue fell 8.6 percent to $14.4 million.

The Hilton’s owner, Colony Resorts LVH Acquisitions LLC, during the quarter said it was notified by Hilton Hotels Corp. that Hilton was not renewing the Las Vegas property’s right to use the Hilton name and room reservation system effective Jan. 3, 2012.

On Tuesday, Colony Resorts LVH said it’s been in "discussions with other major hotel brands'' about a new name.

Full article at link

Losing the Sahara had to hurt. I was just at HGV on the Strip and there is just no reason to go that end of strip. Unless you were at a convention I guess...

So, what does this mean for HGVC?

Does this have any impact on HGVC at Karen St? Will anything be changing there because of this or is it unaffected?

No impact at all on Karen Street. The Vegas Hilton is a franchisee paying for the right to use the Hilton name.

There is some good news in that a week or so ago they announced that the Sahara is going to open back up.

The Atlantic City Hilton in Atlantic City is losing (by now, might have lost) it's 'Hilton' name. Wonder if Hilton wants to dissassociate itself from casinos.

Jeff

They sold the LV Hilton a number of years back. I bet part of the deal was that the purchaser could keep using the name. Dollars to doughnuts the Hilton name comes off the property soon.

George

srs178 said:

Does this have any impact on HGVC at Karen St? Will anything be changing there because of this or is it unaffected?

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It should help improve its identity as a stand-alone HGVC resort.

We've had at least one thread where the poster seemed confused about whether he had booked a hotel room or a TS unit. The problem was that one could book either thru HGVC (w-ClubPoints) or thru Hilton Hotels (w-cash).

At least this will eliminate that source of confusion.

Doubtful

rebel said:

There is some good news in that a week or so ago they announced that the Sahara is going to open back up.

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I heard this too on a Vegas podcast. Most people think this won't happen (at least not for 5 or more years) since they sold EVERYTHING from inside the building. Tables, lamps, chairs, all gambling stuff. It is hard to imagine that the owners can buy all new stuff.
Will

So what has changed since Sahara decided to close shop, that now someone thinks they can make a go of it?

JeffW said:

So what has changed since Sahara decided to close shop, that now someone thinks they can make a go of it?

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lower rent?

Sahara

This article http://www.lasvegassun.com/news/2011/nov/02/permits-approved-remodel-sahara-minus-roller-coast/ makes it seem like they are doing a major remodel.