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| Hilton Las Vegas Drops Staff |
7/27/2001 Cutbacks as Park Place repositions casino-hotel Park Place Entertainment Corp. announced this week that it had cut the workforce at its struggling Las Vegas Hilton by seven percent. The large-scale retrenchment came about as the aftermath of the failed sale of the property. Revenues at the once thriving hotel were reduced to practically nothing in the second half of last year after Ed Roski Jr. agreed to purchase the property. However, Roski was unable to get financing, which he blamed on Park Place for failing to maintain regular business practices at the property while the sale was pending. L Now, Park Place claims it is no longer interested in selling the resort. Instead, Park Place plans to concentrate on repositioning the Hilton as a convention oriented resort, as it is located next to the Las Vegas Convention Center. Discussing its second-quarter earnings, Park Place said the Hilton recorded earnings before interest, taxes, depreciation, and amortization, of $6 million for the quarter, half of the $12 million for the same period the previous year. "The second-quarter results were in line with management's expectations as the company continues to reposition the property as a convention hotel," Park Place said. "As part of this repositioning, management has reduced full-time employees by 220 when compared to last year's quarter." |
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