Report: Cosmopolitan Las Vegas could dent competitors' earnings

08/15/2010 | Reuters

The introduction of 2,000 new hotel rooms in Las Vegas, expected in December with the opening of the city's new megaresort, Cosmopolitan Las Vegas, will place significant new pressure on the market's room rates, according to a report from Union Gaming. The report indicates the competition from the $3.9 billion resort could reduce earnings at MGM Resorts International by 5.5%, or $74.1 million, before interest, taxes, depreciation and amortization. And Wynn Resorts could see cash flow decline by 1.7%, while the Cosmopolitan could cut into Las Vegas Sands earnings by 1.2%.

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