Revenues lag, loss higher than expected at LVH so far in 2012
The LVH -- Las Vegas Hotel & Casino is falling short of a business plan that had already forecast a tough year.
For the five months through June 30, receiver Ronald Johnson reported revenues of $62.1 million, 9.2 percent below budget. The operating loss before interest, taxes, depreciation and amortization ran $6.3 million, more than double the expected $2.6 million.
LVH began slashing a number of expense categories in June, including maintenance, supplies, marketing and entertainment. As a result, the operating loss of $1.35 million was only 4.8 percent worse than budget.
According to Johnson's monthly report, room sales by outside brokers and package deals ran better than projected. But continuing weakness among individual tourists and the convention trade meant overall occupancy was lower than expected.
Meanwhile, Johnson said he had "adjusted" staffing to reflect slower convention business as well as declining patronage at some food outlets. He did not give specifics.
The LVH is the former Las Vegas Hilton. The receiver was appointed after the previous ownership defaulted.
