SLS Las Vegas net loss reaches $48.6 million in second quarter

The SLS Las Vegas suffered a net loss of more than $48.6 million in the second quarter and has lost more than $83.9 million in the first six months of the year, according to a recent securities filing.

Stockbridge/SBE Investment Co., which owns the Strip resort, said in the filing with the Securities and Exchange Commission that the SLS has “has incurred net losses and negative operating cash flows for the six months ended June 30.”

San Francisco-based Stockbridge Capital Partners, the private equity firm that owns 90 percent of the company, said it has funded capital contributions to the hotel-casino totaling more than $28.1 million through June 30.

According to the SEC filing, after the quarter ended, Stockbridge made three additional capital contributions to the SLS Las Vegas to fund operations between July 9 and Aug. 6, totaling $13 million.

Stockbridge said in the SEC filing it intends to provide SLS Las Vegas with “sufficient funds” through Dec. 31 to meet the property’s obligations.

“(Stockbridge/SBE Investment) has initiated certain actions to increase revenues and reduce expenses in order to improve the results of operations, and the company intends to initiate further actions in 2015 to improve profitability of (SLS Las Vegas),” Stockbridge said in the SEC filing. “However, there can be no assurance that such actions will be effective.”

SLS Las Vegas opened a year ago as a $415 million renovation of the former Rat Pack-era Sahara, which closed in 2011.

SLS President Scott Kreeger said Stockbridge was committed to the “long haul” future of the resort.

He said the biggest challenge still facing the resort is its isolated the north Strip location. Kreeger said construction of the Luck Dragon Casino on Sahara Boulevard will help drive additional customer traffic to the area.

“There are some fundamental business model changes we need to make on the property,” Kreeger said. “We have plans in place and we’re moving forward.”

He said the SLS managers plan to turn the Life nightclub into a live music venue and are bringing in a third-party operator to manage the facility. Also, the he said the second floor buffet area, which closed last year, is being looked at for additional meeting space.

Property operators hoped May’s Rock in Rio music festival — held on grounds across the Strip from the resort — would have provided a boost in quarterly results. However, net revenue declined slightly between the second and first quarter while the net loss grew from $35.3 million in the first quarter.

“We think it brought people through and introduced them to the property,” Kreeger said.

In the SEC quarterly filing, Stockbridge/SBE said total revenue between April and June was $36.9 million, which included $9.5 million in casino revenue, $13.1 million in hotel revenue, and $16 million in food and beverage revenue.

“We continue to focus our efforts on increasing the level of table game play at the property and increasing the volume of slot play through leveraging The Code (player rewards) program and building our database of table game and slot customers during the initial ramp up period for the property,” the company said in the SEC filing.

The SLS Las Vegas has publicly traded debt, which requires quarterly SEC filings.

Stockbridge/SBE said hotel revenue benefited from the property’s listing within the Hilton Worldwide Holdings as part of the Curio Collection. Kreeger said the property is looking at other hotel partners to help drive increased room reservations.

Los Angeles-based nightclub operator SBE Entertainment owns the other 10 percent of the SLS.

Contact reporter Howard Stutz at or 702-477-3871. Find @howardstutz on Twitter.

Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like