Almost all casino properties owned by Caesars Entertainment opened their doors once again after the COVID-19 lockdown ended in the United States. However, one property wasn’t able to make a return and start welcoming visitors once again — Rio All-Suite Hotel and Casino.
Nevertheless, it could soon join other casinos in the Entertainment Capital of the World. Caesars’ officials had their quarterly earnings call when they announced that Rio would likely open its doors before the end of the year.
Caesars shared financial report for Q3, displaying that the EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) growth in the third quarter of the year is much better compared to the first two.
According to the report, EDITBAR for Q2 was approximately $10 million. However, it is projected that once the numbers for October are analyzed, Q3 EDITBAR will be about $50 million. This resulted in the company being ready to push forward with all casinos that are currently part of it, including the beloved Rio All-Suite Hotel and Casino that plays a vital role in Caesars’ operations.
Apart from Caesars, several other casino operators with properties in Sin City decided not to start their operations due to the threat posed by COVID-19.
Two other big operators, MGM and Wynn Resorts, stated that they would shut down their operations for a few days every week, as the traffic had been pretty slow in Las Vegas. However, it seems that Caesars is more optimistic, as there have been no declines lately in its operations.
Tom Reeg, CEO of Caesars, stated that the business in Las Vegas continued to get stronger. Moreover, he added that they weren’t going to talk about closing properties. “We’re opening properties,” he concluded in his statement.
Caesars Doing Well Despite Pandemic Struggles
According to Caesars’ update, the occupancy rates at hotels owned by this operator are around 50% during the week. However, they can go up to 90% on the weekends, which is pretty impressive, given the low occupancy rates overall.
Still, these figures are calculated, taking into account reduced capacity limits imposed by Governor Steve Sisolak. However, Reeg remains positive about this as well, believing that the state will allow hotels to increase their capacities soon. Moreover, he believes that these changes could come as early as next year.
Needless to say, every business in the industry, and especially the ones located in Las Vegas, would welcome those changes with arms open wide. Still, it’s pretty difficult to make any definitive conclusions as to when that would really happen, as it all depends on COVID-19 and the development of effective vaccines against it.
The reported net revenue for Q3 for Caesars was $1.4 billion, which is a 25% increase on a GAAP basis. However, when all expenses are taken into account, the net loss is $926 million. Still, that’s pretty good given how unfavorable this year is for all non-essential businesses, including the entire gambling industry.
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