Hooters Hotel posts $5 million loss
Hooters Hotel posted a net loss of $5 million in the second quarter ended June 30 as the property continues to work with its lenders on a possible financial restructuring, according to a Friday filing with the Securities and Exchange Commission.
The loss is a swing from the $2.3 million profit posted the same time last year. The decrease widens the property’s six month loss to $9.1 million, down from a $248,000 profit last year.
The property is in default on $144.5 million, but is in discussions with lenders led by Wells Fargo Foothill about restructuring the debt or selling the property. The property’s ownership said March 31 that it was not going to make interest payments on its debt.
Revenues dropped 29 percent to $11.7 million in the quarter from $16.4 million, and dropped 23.2 percent the first six months to $25 million from $32.6 million.
Second-quarter cash flow, defined as earnings before interest, taxes, depreciation and amortization, fell 95.4 percent, to $86,000 from $1.9 million in 2008. Cash flow the first six months is down 77.9 percent, to $991,000 from $4.5 million.
Casino revenues fell 37.2 percent in the quarter and hotel revenues fell 32.8 percent, which includes the spa and retail. Occupancy for the 696 rooms was 84.6 percent, down from 97.6 percent last year. Average daily room rates were $58, down from $69 last year.
The 9-acre property east of the Tropicana Hotel and Casino is privately held by 155 East Tropicana, a limited liability partnership between some Florida-based founders of the Hooters brand and the Eastern & Western Hotel Corp.
Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
