Kerzner International reported on Monday that end of year results for the Atlantis Resort were “outstanding”, reflecting a nearly $20 million jump in revenue.
According to the company’s fourth quarter results, the Paradise Island property’s net revenue was $124.9 million in the final quarter of 2005, compared to the $108 million reported in the same period the year before.
The company’s fourth quarter results also show an overall net income of $7.1 million compared to a net income of $8.4 million in the previous year, while its adjusted net income for the quarter stood at $13.2 million compared to $9.7 million in 2004.
“There were two main objectives heading into 2005,” said Butch Kerzner, chief executive officer. “One was to hit the ground with our main projects in The Bahamas and Dubai; the second, to keep a good focus on our financial performance, and I think we have done pretty good on both counts-But the big story was Paradise Island.”
He said Paradise Island had an outstanding year.
“We achieved records in terms of financial performance, guest satisfaction performance and employee satisfaction indexes,” Mr. Kerzner said. “On all fronts, this year was really a gratifying one on the island.”
He also thanked former Atlantis executive, Paul O’ Neil, for doing “an amazing job over the last five years.” Mr. O’ Neil recently announced his retirement.
Kerzner officials say the increase in net revenue in the quarter was driven primarily by increases in food and beverage revenue and casino revenue of 23 percent and 22 percent, respectively.
Fourth quarter results show that the growth in food and beverage revenue is primarily attributable to the July 2005 addition of the Marina Village at Atlantis, which includes five new restaurants.
“Slot win was up by 11 percent. The entire floor now is cashless,” explained Howard Karawan, president of the company’s Destination Resorts segment.
“There was a good mix of machines, good multi-denominational video units doing very well. The average win per unit for the year was $213 compared to $177 a year ago, up 20 percent. And so we are very pleased with the performance on the slot side of the business. Our year end table win was also very strong, up by 26 percent. We had some very strong table volumes in the higher end table business toward the Christmas and New Year’s periods.”
Mr. Karawan added that Atlantis’ revenue per available room (RevPar) for the quarter was $163, up from $162 during the same period last year.
In the quarter, Atlantis achieved an average occupancy of 71 percent versus 72 percent a year ago, the company said.
The property also reported a record fourth quarter average daily room rate (ADR) of $229 as compared to $224 in the same period last year.
“We really started the quarter off a little weak. Hurricane Wilma hit South Florida pretty significantly,” Mr. Karawan said.
Turning to the company’s luxury resort segment, Mr. Kerzner said it appears as if going further into 2006, the Palmilla, the company’s new property in the Maldives, and the Ocean Club will do very well.
The One&Only Ocean Club recorded fourth quarter RevPAR of $623, representing an 11 percent increase over the same period last year.
In the quarter, the resort achieved average occupancy and record fourth quarter ADR of 79 percent and $786 respectively, compared to average occupancy and ADR of 80 percent and $702, respectively, in the same period last year.
Kerzner says such record results, combined with the continued strong levels of demand for Atlantis along with its solid balance sheet, serve as a power foundation for its next wave of growth on Paradise Island – the $730 million Phase III expansion.
Officials said the development of the 600-room, all suite hotel and its expanded water attractions is on target to open by April 2007. The expansion will also include additional night attractions like a nightclub located just off from Nobu, a premier Japanese restaurant.
“Nobu has created a huge amount of energy for the casino-One of the first Saturdays we were open, we did over $85,000 in one night,” Mr. Karawan said.
“So this is a very, very strong restaurant and we are very pleased with where that’s going. I think that once we put in a night club next door and the expanded casino floor, it’s really going to add a great hub to the casino space and hence the overall project.”
Since December 1, every week – with the exception of one – the property’s weekly in house reservations have exceeded prior years, officials reported.
By: Macushla N. Pinder, The Bahama Journal
