On Sunday, the Kansas Metropolis Chiefs and San Francisco 49ers clinched spots in Tremendous Bowl LVIII. The massive recreation might break data for room charges on the Las Vegas Strip, based on one analyst.
The Welcome to Las Vegas signal. Resort charges on the Strip might set data throughout Tremendous Bowl weekend. (Picture: Shutterstock)
Whereas acknowledging that comparisons between the 2023 Tremendous Bowl in Phoenix and this 12 months’s iteration of the sport in Sin Metropolis are robust, Truist Securities analyst Barry Jonas identified in a brand new report that Las Vegas Strip lodge room costs are at the moment averaging $800 per evening at Caesars Leisure (NASDAQ: CZR) and MGM Resorts Worldwide (NYSE: MGM) properties in contrast with $300 per evening in Phoenix a 12 months in the past.
The Tremendous Bowl is shaping as much as grow to be a fabric occasion,” Jonas wrote. “Room-survey knowledge suggests a big average-daily-room charge uplift throughout properties for each MGM and Caesars over the Tremendous Bowl weekend. Our survey suggests room-rate compression may very well be important throughout most properties in each firms’ portfolios, with most premium Strip rooms lengthy bought out on web channels.”
MGM and Caesars are the 2 largest operators on the Strip. Tremendous Bowl LVIII takes place on Sunday, February 11 at Allegiant Stadium, dwelling of the Las Vegas Raiders.
Tremendous Bowl Advantages May Be Extra Widespread In comparison with F1
November’s Las Vegas Grand Prix — Components One’s (F1) first go to to Las Vegas in 4 a long time — was a hit, however on the operator stage, financial upside was largely confined to high-end on line casino accommodations. These embody MGM’s Aria, Bellagio, Cosmopolitan, Caesars Palace, and Wynn Las Vegas.
Particular to Caesars, most of that operator’s Strip properties, excluding Caesars Palace, are thought-about middle-of-the-road venues, that means there wasn’t a lot profit attributable to the F1 race. Nevertheless, on line casino accommodations akin to Caesars’ Flamingo and Horseshoe and MGM’s Excalibur and Luxor may very well be positively affected by the Tremendous Bowl.
“As in the course of the F1 occasion, higher-end properties seem like benefiting strongly, though in contrast to F1 the place the advantages have been primarily captured by the high-end, medium-tier properties are additionally commanding increased charges 12 months over 12 months for the Tremendous Bowl,” added Jonas.
Jonas noticed that the Tremendous Bowl might offset some softness in March room costs because of the absence of the CON/AGG conference and a few of the weak spot on room costs seen earlier this month in the course of the Client Electronics Present (CES).
Different Las Vegas Strip Resort Notes
Jonas additionally identified that MGM’s current choice to spice up resort charges at Aria, Bellagio, Cosmopolitan, and Vdara, whereas burdensome to visitors, might contribute to increased first-quarter earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) for the operator.
The analyst added that the debut of Fontainebleau Las Vegas isn’t hampering room costs at rival properties, and that the much-maligned venue is proving steadier than Resorts World Las Vegas, the second-newest Strip built-in resort.
“Fontainebleau charges are trending near Bellagio’s and for now seem like holding higher than the Resorts World launch in June 2021, which had some early power earlier than falling materially,” concluded Jonas.
