Las Vegas room rates decline as observed by Truist Securities analyst Barry Jonas. His analysis saw room rates soften from April through July. Full details on Vegas room rates reveal intriguing trends in the gambling capital.
Las Vegas Room Rates Decline in 2023
Jonas noted that while the Las Vegas Convention & Visitors Authority attributes the trend to ‘consumer uncertainty,’ he remains cautious about this perspective. He highlighted the potential for improvement due to shorter booking windows. Jonas stated, “We’re seeing some deceleration in rates, possibly due to macro uncertainty affecting consumer demand.”
MGM Resorts International’s room rates declined by four percent in April, while Caesars Entertainment properties saw a 17 percent increase. However, MGM’s rates decreased three percent in May and seven percent in June. Caesars experienced a seven percent drop in May and a two percent rise in June.
Impact on Casino Giants
For July, advance bookings indicate a one percent dip for MGM and a six percent drop for Caesars. Jonas mentioned, “Our recent survey looked stable to slightly positive relative to the previous week.” His insights on casino rates are crucial for gamers planning their next trip.
May’s weekend rate weakness for both MGM and Caesars is worrying, with MGM rooms down eight percent and Caesars’s plunging 18 percent. Midweek rates have shown more stability, with MGM’s rates climbing 12 percent, though Caesars’s fell eight percent.
In June, the slowdown persisted with a one percent weekend rate drop for MGM and a 17 percent plunge for Caesars. Midweek rates for both companies dropped 12 percent.
Future Trends and Considerations
Jonas described July bookings as “less bad but still down” compared to 2024. He advised caution given limited data for July. He noted that shorter booking windows could lead to unexpected rate shifts.
