Hard Rock Hotel reports losses even as revenues improve
The Hard Rock Hotel’s management company said Tuesday that while revenues improved by 40 percent in the fourth quarter, it wasn’t enough to erase a loss for both the quarter and 2010.
Morgan’s Hotel Group Co. said it lost $6.7 million, or 30 cents a share, in the fourth quarter ended Dec. 31, a dramatic decline from the $51.2 million, or $1.41 a share, for the same period a year earlier.
For 2010, Morgans Hotel Group reported a loss of $80.8 million, or $3.49 a share, compared with $99.7 million, or $2.97 a share, in 2009.
“With the improving hotel market, we expect favorable operating leverage and continued cost vigilance to allow us to deliver strong flow from (revenues) in 2011,” Morgans Hotel Group Chief Executive Officer Feed Kleisner said.
New York-based Morgans Hotel Group will soon transfer its minority ownership stake in the Hard Rock Hotel to a fund controlled by Brookfield Asset Management. Nevada gaming regulators agreed to the transfer during a special meeting Feb. 24 in Carson City.
Morgans Hotel Group was also required to surrender its gaming license, as Warner Gaming LLC will take over control of the property’s casino.
The deal was scheduled to close on Tuesday. Messages left with Warner Gaming and Morgans Hotel group were not returned.