The Cosmopolitan in Las Vegas is undergoing many changes designed to improve its experience for more visitors, while repositioning the casino to a wider clientele.
The Cosmopolitan largely lost money since opening in 2010, and that trend continued into 2015, until it turned its first profitable fiscal quarters last year, largely due to decreased operating costs and marketing changes.
Gaming revenues at the casino rose by 13 percent through the first nine months of 2015, boosted by a more than 20 percent rise in slot revenues. Table games revenue rose by nearly 10 percent, the Cosmopolitan reported.
The result was two straight profitable quarters to end the 2015 fiscal year. Net revenues were down through the first nine months of the year, but decreased operating costs more than made up for it, especially as depreciation costs dropped from $125.6 million in 2014 to $83 million last year.
The Cosmopolitan posted its first profitable quarters despite gaming on the Las Vegas Strip staying mostly level through 2015.
Helping those numbers is a new marketing strategy that targets less affluent visitors, and efforts to improve gaming options and amenities.
Among recent changes was moving the Cosmopolitans’ sports book to the casino’s main floor from its prior second-floor location, making it more accessible and helping to improve gaming options and experience in the casino.
The casino also has opened or is scheduled to open new eateries, bars, and exhibitions to attract millennial bettors and others. Among the many changes is reworking the first floor of the three-story Chandelier lounge, and enhancing the gaming experience for high-rollers.
The marketing change means the Cosmopolitan now is attracting a broader range of visitors, who are more willing to stay and play slots and gamble, then the prior targeted market of affluent tourists looking for luxury accommodations.
It also is attracting more conventions and meetings, and improving its bottom line.
