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Thu 5 May 2011 10:54 AM

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Losses narrow at Dubai World’s Las Vegas resort

Casino development CityCenter sees Q1 losses fall to $6m, aided by resurgence on Las Vegas strip

Losses narrow at Dubai World’s Las Vegas resort
CityCenter Holdings is a joint venture between MGM Resorts International and Dubai World subsidiary Infinity World Development Corp

CityCenter, the Las Vegas casino development part-owned by Dubai
World, saw its first-quarter losses fall from $119m to $6m aided by rising
revenues on the city’s famous strip.

The property saw its quarterly earnings surge 46 percent to
$262m helped by a 13 percent rise in room revenues and a 16 percent jump in
revenue per available room.

MGM Resorts International, Dubai World’s partner in the venture,
saw its net revenue rise three percent to $1.5bn in the three months to March 31,
the company said Wednesday.

"Performance at our Las Vegas properties was driven by
increased hotel occupancy and room rates. Results from joint ventures reflected
record quarters at both MGM Macau and CityCenter," said Jim Murren, MGM
Resorts International chairman and CEO.

“Our belief that the Las Vegas recovery is underway is
supported by our first-quarter operating results and our positive early
second-quarter trends.”

CityCenter casino development, the largest on the Las Vegas
strip, is a joint venture between MGM Resorts International and Dubai World
subsidiary Infinity World Development Corp.

Average occupancy rates for hotels on the strip rose from 85
percent to 87 percent for the quarter, with average daily rates recording a 13
percent jump to $130.

 MGM said casino
revenues decreased five percent, which it attributed to “a lower than normal
table games hold percentage.”

MGM Resorts International, which owns ten Las Vegas Strip
resorts, saw its first quarter net loss fall to $90m, down from $97m in the
same period a year-earlier.

CityCenter Holdings sold $1.5bn of senior secured notes in
January in a bid to restructure a portion of its debt.

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