THE operator of The Heritage Hotel Manila said its earnings in the third quarter improved by a tenth because of stronger food and beverage revenue from casino operations, even as higher costs continue to drag its nine-month earnings.

In a regulatory filing, Grand Plaza Hotel Corp. said its net income grew to P36.56 million in the third quarter from P33.31 million in the same period last year.

This failed to lift the company’s nine-month earnings, which fell 6 percent to P127.32 million from the previous year’s P135.095 million.

Revenues inched up by 5 percent to P168.95 million in the June to September period from P160 million last year.

Despite lower room revenues because of lower rates, total revenues rose 3 percent year on year to P528.59 million in the first nine months from P512.43 million in 2010 on the back of higher revenues from casino and lobby lounge outlets.

“Casino revenue has improved this year as Pagcor has worked on new marketing initiatives to draw back the crowd to the casinos due to new competition from Resort World,” said Grand Plaza Hotel, referring to state-run Philippine Amusement and Gaming Corp.

Total cost of sales inched up to P45.28 million from P44.41 million last year, while operating expenses jumped to P306.71 million from P285.77 million for the nine-month period on higher electricity costs.

Incorporated in 1989, GPH owns The Heritage Hotel, a deluxe class hotel which offers 467 rooms and facilities such as restaurants, ballrooms, and a casino.

Its shares were last traded at P33 each on October 24.