Monday, June 29, 2015

SLS is Struggling Financially

A recent filing with the SEC revealed that SLS Las Vegas isn't performing well financially. The first quarter 2015 results show low revenues with a large net loss.

Ignoring the massive $35 million loss, the revenue numbers might be more troubling. SLS managed only $37.3 million of net revenue in the first quarter. In comparison the much beleaguered Circus Circus did over $51 million in net revenue during the same period.

If those numbers weren't bad enough, noted in the filing was the news that parent company Stockbridge contributed $5.3 million to the company for working capital. Stockbridge will contribute up to $40 million until December 31, 2015 to help the company meet its financial obligations.

With low revenues and the parent company needing to throw SLS a lifeline, things aren't looking too good. SLS might be able to turn things around, but they'll need to do something to attract people to the property. With their poor location that isn't going to be easy.