Nevada Property 1, the owner of the new Cosmopolitan Las Vegas casino and hotel on the Las Vegas Strip, made a loss of nearly $140m in 2010.
The Cosmopolitan, which is situated next to MGM’s CityCenter complex, opened in December last year with the aim of delivering a new level of style and luxury to the Strip.
Nevada Property 1, which is a subsidiary of Deutsche Bank, announced this week that it made a loss of $139.5m in 2010, representing a $168.1m decrease on net income of $28.6m in the previous year. The company attributed this is to the Cosmopolitan’s pre-opening expenses of $116.5m.
As the new resort has only been in operation for a few months, the company said that its results for 2010 were unlikely to be indicative of its future performance. However, with the completion of the second phase of construction of the property in August this year, it may incur further pre-opening expenses.
The Cosmopolitan is expected to be the last major casino property to open on the Strip, with investment in new projects hit by lower consumer demand and a squeeze on operator revenues.
