Effect of The Recession On Las Vegas Operations
In Las Vegas, the 1st quarter of 2009 was the first where the Encore was fully operational after its opening on December 22, 2008. The prior year quarter includes only Wynn Las Vegas. Overall revenue from the resort increased from $327.2 to $345.9 in the first quarter, a very modest increase considering the additional hotel tower and new food and beverage outlets.
Despite the additional casino at the Encore (which added 97 tables and 857 slot machines to the original 190 tables and 2000 slots) net casino revenues for the combined resort were lower than the first quarter of 2008 when only The Wynn was operating. Net casino revenues for the combined resort dropped from $125.1 million to $117.5 million.
Gross non-casino revenues for the quarter were $228.4 million, a 13.3% increase from the first quarter of 2008, driven primarily by higher hotel and food and beverage revenues resulting from the opening of Encore. Although the added 2,034 suites at Encore nearly doubled the suites in the property hotel revenues were up only 20.6% to $85.1 million during the quarter, versus $70.6 million in the first quarter of 2008 due to declining room rates and lower occupancy rate. Food and beverage revenues increased as a result of the additional 12 food and beverage outlets located in the Encore expansion. Retail revenues declined and entertainment revenues also decreased primarily due to the closure of the Spamalot production show in July 2008.
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