As the Kansas City Chiefs and San Francisco 49ers secure spots in Super Bowl LVIII, all eyes turn to the Las Vegas Strip, where Truist Securities analyst Barry Jonas anticipates record-breaking room rates. In a comprehensive report, Jonas sheds light on the current state of affairs, highlighting the substantial surge in hotel prices at key properties operated by Las Vegas Strip gambling giants, Caesars Entertainment and MGM Resorts International.
The Super Bowl Room Rates Surge
Jonas unveils a noteworthy revelation in his report, indicating that the average nightly room rates on the Las Vegas Strip have skyrocketed to $800 at hotels of Caesars Entertainment and MGM Resorts International establishments. This stark contrast to the $300 rates in Phoenix during the 2023 Super Bowl prompts intriguing insights into the economic impact of hosting such a monumental event. Acknowledging the challenge of comparing the two locations, Jonas emphasizes the significance of the upcoming Super Bowl LVIII in Sin City.
Room-Rate Compression and Premium Strip Rooms
The analyst delves into the data gleaned from comprehensive room surveys, suggesting a significant uplift in average daily room rates across both MGM and Caesars properties during the Super Bowl weekend. Room-rate compression emerges as a notable trend, with premium Strip rooms already long sold out through online channels. This phenomenon underscores the palpable anticipation and demand for accommodations, positioning the Super Bowl as a material event for both operators.
MGM and Caesars Dominance on the Strip
With a focus on the two largest operators on the Las Vegas Strip, MGM and Caesars, Jonas emphasizes the pivotal role these industry giants play in shaping the landscape of the city. The backdrop of Super Bowl LVIII at Allegiant Stadium, home of the Las Vegas Raiders, further solidifies the significance of the event, as it draws attention not only to the game but also to the thriving hospitality industry in the region.
Comparative Analysis: Super Bowl vs. F1
Drawing parallels with November’s Las Vegas Grand Prix, Jonas highlights the contrasting economic impacts at the operator level. While the F1 event primarily benefited high-end casino hotels and casinos, including MGM’s Aria, Bellagio, Cosmopolitan, Caesars Palace, and Wynn Las Vegas, the Super Bowl’s influence extends beyond the elite establishments. Medium-tier venues such as Caesars’ Flamingo and Horseshoe and MGM’s Excalibur and Luxor are poised to reap positive effects, showcasing a more inclusive economic boost for the Las Vegas Strip.
Offsetting Weakness and Future Implications
Jonas points out strategic implications of the Super Bowl, suggesting that it could offset softness in March room prices caused by the absence of the CON/AGG convention and weaknesses observed during the Consumer Electronics Show (CES). This insightful analysis positions the Super Bowl not only as a short-term economic driver but also as a strategic counterbalance for potential challenges in the hospitality sector.
Las Vegas Strip Hotel Dynamics
Beyond the Super Bowl, Jonas delves into various dynamics shaping the Las Vegas Strip hotel landscape. He discusses MGM’s recent decision to increase resort fees at Aria, Bellagio, Cosmopolitan, and Vdara, noting its potential contribution to higher first-quarter earnings. Additionally, he offers valuable insights into the performance of Fontainebleau Las Vegas, dispelling concerns about its impact on rival properties and highlighting its resilience compared to Resorts World Las Vegas.
Bottom Line
In conclusion, Barry Jonas’s analysis provides a comprehensive and nuanced perspective on the unfolding events on the Las Vegas Strip, particularly in light of the upcoming Super Bowl LVIII. As the city prepares to host this monumental event, the implications for room rates, economic dynamics, and strategic considerations underscore the resilient and dynamic nature of the hospitality industry in Las Vegas.
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Frequently Asked Questions (FAQ) about the Las Vegas Strip:
What is the main Strip in Las Vegas called?
The main Strip in Las Vegas is commonly known as the Las Vegas Strip. It is a world-famous casino and resort-lined street stretching 4.2 miles in the heart of Las Vegas, Nevada.
What is the famous Las Vegas Strip?
The famous Las the strip. Vegas Strip refers to a vibrant section of South Las Vegas Boulevard renowned for its iconic resorts, hotels, casinos, and entertainment venues. It’s a globally recognized destination synonymous with the dazzling lights and vibrant nightlife of Las Vegas.
How long does it take to walk through the Strip in Las Vegas?
The time it takes to walk through the Las Vegas Strip depends on the pace of the walker and the specific stretch being covered. On average, walking the entire length of the Strip, from the Welcome to Fabulous Las Vegas sign to the Stratosphere, may take around 1.5 to 2 hours.
Can I walk on the Las Vegas Strip?
Yes, walking on the Las Vegas Strip is a popular and common activity. Sidewalks along the Strip provide pedestrian-friendly access to the various attractions, resorts, and entertainment venues. Visitors can enjoy the vibrant atmosphere, street performances, and unique architecture while exploring the area on foot.