Atlantis' collection of restaurant and retail spaces that comprise Marina Village is so popular that patronage at the site continued to boost the resort's revenue, according to the financial results for the first quarter of 2006.
Food and beverage sales primarily accounted for the increase.
Net revenue for the quarter was recorded at $169.7 million, the results showed. It was slightly more that the $157.4 million that was earned in the same quarter of the previous year.
"The increase in net revenue in the quarter was driven primarily by an increase in food and beverage revenue of 17 percent," stated the report.
"The growth in food and beverage revenue is primarily attributable to the July 2005 addition of the Marina Village at Atlantis, an approximately 75,000 square foot restaurant, retail and entertainment area next to the Marina at Atlantis that includes five new restaurants, and the opening of Nobu Atlantis in January, which is located adjacent to the Atlantis Casino," it added.
Kerzner officials initially reported in the fourth quarter results for 2005 that the increase in net revenue in that quarter was driven primarily by increases in food and beverage revenue and casino revenue of 23 percent and 22 percent, respectively.
Fourth quarter results showed that the growth in food and beverage revenue was primarily attributable to the July 2005 addition of the Marina Village at Atlantis, which includes five new restaurants.
The financial results showed that EBITDA was $61 million, a few million dollars more than the $63 million recorded in the first quarter of 2005. EBITDA margin for the quarter was 36 percent compared to the 40 percent for the same period in the previous year.
Analysts explained that the decrease in the margin was due mainly to a higher proportion of food and beverage revenue which has a lower EBITDA margin and increased levels of utility and sales marketing expenses.
Additionally, there was a recorded increase in revenue per available room [RevPAR] for the quarter, at $276, compared to the $269, during the first quarter of 2005. The hotelﾒs average occupancy was 86 percent and the average daily room rate was $320.
The property is presently undergoing a $730 million third phase of its expansion on the Paradise Island site, with the construction of the 600 room all-suite hotel under construction. Completion of the hotel, expanded water attractions and a 100,000 square feet construction space is still on track for April 2007, according to the financial reports.
According to the latest financial reports, Kerzner, which operates the mystical themed Atlantis Resort, incurred $104.9 million in capital expenditures. It was primarily related to operations at Paradise Island, including capitalized interest of $3.2 million.
Executives said the company expects to spend between $130 million and $140 million on Paradise Island capital expenditures in the second quarter of 2006.
Construction of the 88-unit Ocean Club Residences & Marina condominium joint venture project was about 33% complete at the end of the quarter. The cost of this development, which is being financed primarily from presales of units, is expected to be approximately $130 million, Kerzner reported.
Already the joint venture enterprise ﾖ between Kerzner and Turnberry Associates – has received deposits on 83 units since they went on the market in May 2005. The project, which is comprised of four 22-unit buildings, is expected to be completed in stages between January and May of 2007.
By: Tameka Lundy, The Bahama Journal
