Planet Hollywood posts declining revenues in first quarter

Planet Hollywood Resort posted declining revenues in the first quarter, the first time the Strip property has reported declines in consecutive quarters since the property was rebranded from the Aladdin in late 2007.  

The property posted a net loss of $14 million in the first quarter ended March 31, a late Friday filing with the Securities and Exchange Commission shows. The loss was an increase from the $12 million loss posted for the same time last year.

The loss was driven by a $9.3 million interest expense in the quarter and a 22.9 percent decline in revenues.

The interest expense was mostly tied to a $860 million loan that initially matured in December. The property's owners, however, signed the first of three possible one-year extensions available on the loan.

Revenues dropped to $57.1 million from $74 million driven by 21.6 percent decrease in casino revenues and a 26.5 percent decrease in hotel revenues. Average daily room rates dropped $29 to $115 per night, while occupancy of the 2,496-room hotel was 85.1 percent.

The property, however, was able to trim operating costs by 9.3 percent from the same quarter last year. 

The property had $18.5 million in cash and cash equivalents on March 31, a 22.3 percent decrease from its cash holding last year. 

The property's cash requirement this year include $6.2 million for capital expenditures and $30.9 million in interest expenses.

Planet Hollywood Resort is privately held by restaurateur Robert Earl and private equity firm Bay Harbour Management. Starwood Hotels & Resorts Worldwide owns 11.39 percent and provides hotel management and marketing services for the property.