Casino news source: Hotel Chatter - http://www.hotelchatter.com/
It's Official: Hooters Casino Hotel is Struggling
Where: 115 E. Tropicana Avenue [map], Las Vegas, NV, United States, 89109
1/29/2007 at 11:06 AM
Not too long ago we put Hooters Casino Hotel on the Breaking Even tier of our Viva Las Vegas Hotel Map with information from our insiders that the hotel was doing quite well. Then last week, Wall Street said Hooters is struggling to maintain the Vegas average occupancy rate. Hmm..our insiders must not have known about that but truth be told, everytime we've stepped in there it's been crowded.
Now, the Las Vegas Sun has put forth an article that says Hooters is close to crapping-out.
The Hooters casino lost $16 million in the first three quarters of last year. But more upsetting to Wall Street was its dismal operating cash flow of $5.2 million over that period - not enough to cover the company's annual debt payments of $13 million and resulting in new agreements with lenders. Also troubling was the property's average occupancy rate of about 74 percent from opening through September, which pales next to the 90-plus percent occupancy rates across most of Las Vegas.
Some of the reasons for this dismal first year performance? Women make-up the majority of slot players in Vegas and a casino that targets men is not the female's ideal place to throw down money. Additionally, the hotel was a draw for younger crowds on the weekend but not for the older crowds during the week who typically spend more money gambling along with renting rooms. And as far as rooms go, Hooters was not aggressive enough in selling rooms on the internet which hurt occupancy rate. Another reason is that most casino hotels struggle in their first year. It doesn't help that Hooters has a ton of debts but they are making more than what the old San Remo casino was making.
So this hotel is teetering on the Breaking Even tier but we think they will pull their act together soon. Our unwanted, unsolicited suggestion for attracting female guests? Limit the amount of Hooters uniforms to the waitresses in the restaurant and add an all-male revue like "Jocks" or something. Comping food and drinks throughout their stay might work too.
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