In a quarterly filing with the Securities and Exchange Commission, it was reported SLS Las Vegas lost .3 million in the first quarter while its private equity owners contributed .3 million in April for general operations of the property. In the first quarter, the SLS Las Vegas brought in .3 million in net revenue.
Stockbridge Capital Partners, owners of a 90 percent stake in the property, said it is ready to pony up another $40 million through the rest of the year to help the company “pay its obligations as they become due.” SLS President Scott Kreeger said, “Stockbridge remains committed to the project, believes in our business plan, and is excited about the future.”
Stockbridge recently reached an agreement with Mesa West Capital for a $185 million loan. This helped pay off $172.5 million in existing debt, and the 8.5 rate is substantially lower than the previous 13 percent it was paying. Standard and Poor’s Rating Service wasn’t too kind to SLS Las Vegas in April, and said it had “significantly weaker-than-expected operating performance.”
A breakdown of the first quarter revenue shows only $9.1 million came from the casino, $13.6 million in hotel revenue, while food and beverage accounted for $15.7 million.
Kreeger said the property is making adjustments by looking for alternative ways to increase foot traffic in the property, by finding different uses for the nightlife venues, and creating a summer concert series. The recent Rock in Rio festival held across the street provided SLS Las Vegas “with a phenomenal amount of free advertising,” according to Kreeger.
The other 10 percent of the property is owned by Los Angeles-based nightclub operator SBE Entertainment.