The city-financed Radisson Plaza Hotel continues its struggle to boost revenues, despite a pickup in room sales the past couple of months.

Earnings are way off projections for the April-August period, but officials say new budget strategies will help cut back expenses and get the hotel to break even.

During that five-month period, forecasts had the hotel losing $135,939 during its start-up. But the hotel's earnings have been nearly five times worse.

The hotel lost $648,440 during those five months. That's about what the hotel was expected to lose during its first 12 months.

"Where we are right now is not where we expected to be," said Walt Standish, chairman of the Hotel Board Corp., which met Wednesday. "The next 12 to 18 months will be challenging."

Still, room sales improved in July and August, fueled by leisure visitors during the peak season. Room sales in August beat revised projections by 21.3 percent and are 5.4 percent above scaled-back projections so far this year.

"We are meeting those projections, but that performance needs to go way up next year," Standish said.

Consultants with the Strategic Advisory Group are going over the books and will report next month on whether there's more the Radisson could do to improve the bottom line.

Radisson leaders also are implementing what's being called "cost-containment strategies." That's some basic belt-tightening by department managers and doesn't include layoffs or cutting services such as the food-and-beverage offerings, general manager Michael Poynter said.

Food and beverage sales from Vidalia's restaurant and the M Bar were off projections by 32.8 percent from April through August.

The hotel must have those food offerings to meet Radisson requirements, as well as those for AAA's coveted four-diamond rating, which signals high-end quality and service. Radisson is the only hotel on the beach to have that rating.

Department managers are adjusting expenses, Poynter said.

"That's just sensibly managing the business - making sure we don't overspend," he said. "We've done substantial changes to the operations, and we continue to look at cost-containment strategies."

Total departmental expenses came in 17.3 percent below August projections.

The city financed the $48 million hotel next to the Myrtle Beach Convention Center to lure larger groups that demand on-site accommodations. Those people also are expected to create an overflow to other hotels, as well as spend money at restaurants, attractions and stores.

The Radisson sales team has been attending trade shows, contacting potential customers through the Internet and working with the chain's central reservations system to generate interest and room sales.

With so many cost cuts already implemented, revenues must increase to balance the bottom line.

"I wish they were closer to where they thought they would be," City Councilman Randal Wallace said. "It's one of our biggest investments."