Stratosphere, Arizona Charlie’s owner reports rise in revenue
American Casino & Entertainment Properties LLC, owner of the Stratosphere and Arizona Charlie’s, has reported a third-quarter net loss of $4.2 million, compared to an $8.9 million loss over the same period last year.
Revenues increased 3.7 percent year-over-year for the period that ended Sept. 30, from $83.6 million to $86.7 million.
The company’s earnings were buoyed by a solid third-quarter performance from the Stratosphere, which saw net revenues increase 9.7 percent. Hotel revenue at the 2,427-room property spiked 27.9 percent due to a 22 percent increase in average daily room rate. Stratosphere officials in January unveiled $20 million in room renovations.
Revenue at the company’s two Arizona Charlie’s properties declined 2.6 percent, which was largely attributed to a year-over-year decrease in sports book hold percentages. The properties, particularly Arizona Charlie’s Boulder, also face heavy competition from other locals casinos, company officials said.
The company’s Laughlin property, the Aquarius, was affected by construction on the city’s main drag, Casino Drive. Revenue at the property increased slightly, but the company plans to revive an advertising program from last year that will make the Aquarius more competitive in the market.
American Casino & Entertainment Properties Chief Financial Officer Edward Martin said in a Thursday morning conference call that the company has looked into acquiring properties in Las Vegas and in regional gaming markets across the country, but hasn’t found the right fit. The company will continue to focus on making capital improvements at its current properties.
CEO Frank Riolo said the company plans to refresh the Stratosphere’s Top of the World restaurant next year and add a new restaurant on the casino floor.
