If one defines "doing great" as "losing less money this quarter than last quarter," then yes, The Cosmopolitan of Las Vegas is faring very well indeed. It has consistently narrowed its losses in the last three quarters. That still translated to $75 million in red ink over nine months. At 86% occupancy in the third quarter (3Q12), the Cosmo was able to increase its average room rate to $157/night.
However, gambling revenue was paltry by Vegas standards in 3Q12, continuing a trend that dates to the resort’s opening. It won only $22.5 million from gamblers. Compare that to the $82 million raked in by the Cosmo’s bars and restaurants or the $60 million generated by its hotel bookings. Those numbers, and those of retail and entertainment revenue, all continue to improve but the casino is sucking wind. Poor marketing is blame and our Stiffs & Georges columnist, David McKee, continues to hear from disgruntled players about how poorly their wagering is rewarded in terms of comps and other promotional offerings.
Cosmopolitan earnings reports have become such an embarrassment to owner Deutsche Bank that it has tried to have the property de-listed. Considering that Deutsche Bank is one the hook for the $4 billion megaresort, if operating results were good, it would be trumpeting the news, not trying to mute it.
