Super Bowl Room Rates Could Topple Las Vegas Strip Records, Says Analyst

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Posted on: January 29, 2024, 12:37h. 

Last updated on: January 29, 2024, 01:13h.

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On Sunday, nan Kansas City Chiefs and San Francisco 49ers clinched spots successful Super Bowl LVIII. The large crippled could break records for room rates connected nan Las Vegas Strip, according to 1 analyst.

Nevada casinos Las Vegas gaming gross GGRThe Welcome to Las Vegas sign. Hotel rates connected nan Strip could group records during Super Bowl weekend. (Image: Shutterstock)

While acknowledging that comparisons betwixt nan 2023 Super Bowl successful Phoenix and this year’s loop of nan crippled successful Sin City are tough, Truist Securities expert Barry Jonas pointed retired successful a caller study that Las Vegas Strip edifice room prices are presently averaging $800 per nighttime astatine Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM) properties compared pinch $300 per nighttime successful Phoenix a twelvemonth ago.

The Super Bowl is shaping up to go a worldly event,” Jonas wrote. “Room-survey information suggests a important average-daily-room complaint uplift crossed properties for some MGM and Caesars complete nan Super Bowl weekend. Our study suggests room-rate compression could beryllium important crossed astir properties successful some companies’ portfolios, pinch astir premium Strip rooms agelong sold retired connected net channels.”

MGM and Caesars are nan 2 largest operators connected nan Strip. Super Bowl LVIII takes spot connected Sunday, February 11 astatine Allegiant Stadium, location of nan Las Vegas Raiders.

Super Bowl Benefits Could Be More Widespread Compared to F1

November’s Las Vegas Grand Prix — Formula One’s (F1) first sojourn to Las Vegas successful 4 decades — was a success, but astatine nan usability level, economical upside was mostly confined to high-end casino hotels. Those see MGM’s Aria, Bellagio, Cosmopolitan, Caesars Palace, and Wynn Las Vegas.

Specific to Caesars, astir of that operator’s Strip properties, excluding Caesars Palace, are considered middle-of-the-road venues, meaning there wasn’t overmuch benefit attributable to nan F1 race. However, casino hotels specified arsenic Caesars’ Flamingo and Horseshoe and MGM’s Excalibur and Luxor could beryllium positively affected by nan Super Bowl.

“As during nan F1 event, higher-end properties look to beryllium benefiting strongly, though dissimilar F1 wherever nan benefits were chiefly captured by nan high-end, medium-tier properties are besides commanding higher rates twelvemonth complete twelvemonth for nan Super Bowl,” added Jonas.

Jonas observed that nan Super Bowl could offset immoderate softness successful March room prices owed to nan absence of nan CON/AGG normal and immoderate of nan weakness connected room prices seen earlier this period during nan Consumer Electronics Show (CES).

Other Las Vegas Strip Hotel Notes

Jonas besides pointed retired that MGM’s caller decision to boost edifice fees astatine Aria, Bellagio, Cosmopolitan, and Vdara, while burdensome to guests, could lend to higher first-quarter net earlier interest, taxes, depreciation, and amortization (EBITDA) for nan operator.

The expert added that nan debut of Fontainebleau Las Vegas isn’t hampering room prices astatine rival properties, and that nan much-maligned venue is proving steadier than Resorts World Las Vegas, nan second-newest Strip integrated resort.

“Fontainebleau rates are trending adjacent to Bellagio’s and for now look to beryllium holding amended than nan Resorts World motorboat successful June 2021, which had immoderate early spot earlier falling materially,” concluded Jonas.

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