{"id":409,"date":"2025-08-26T18:03:51","date_gmt":"2025-08-26T18:03:51","guid":{"rendered":"http:\/\/www.chuckwardrealestate.com\/?p=409"},"modified":"2025-09-22T12:09:12","modified_gmt":"2025-09-22T12:09:12","slug":"las-vegas-casino-room-rate-boost-may-not-materialize-in-q4","status":"publish","type":"post","link":"http:\/\/www.chuckwardrealestate.com\/index.php\/2025\/08\/26\/las-vegas-casino-room-rate-boost-may-not-materialize-in-q4\/","title":{"rendered":"Las Vegas Casino Room Rate Boost May Not Materialize in Q4"},"content":{"rendered":"<ul>\n<li><strong>Operators previously confirmed Q2 weakness and forecast more of the same for the current quarter<\/strong><\/li>\n<li><strong>Q4 was supposed to be better, but as of today, softness is seeping into October bookings and room rates<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>As confirmed by downbeat second-quarter earnings reports from Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), the Las Vegas Strip is experiencing a period of lethargy that\u2019s carried over into the current quarter and that might not conclude in the fourth quarter as previously hoped.<\/p>\n<figure id=\"attachment_349225\" aria-describedby=\"caption-attachment-349225\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-349225 size-post-thumbnail-858xAUTO lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"Las Vegas hotel tax tourism LVCVA\" width=\"858\" height=\"572\" data-src=\"http:\/\/www.chuckwardrealestate.com\/wp-content\/uploads\/2025\/08\/shutterstock_788513926-858x572-1.jpg\"><figcaption>The Las Vegas Strip is seen at night. Room rates are trending down in Q3, and an October rebound may not materialize. (Image: Shutterstock)<\/figcaption><\/figure>\n<p>In Truist Securities\u2019 latest Las Vegas Strip room rate survey, analyst Barry Jonas notes \u201cthe early look into October is not all that encouraging,\u201d potentially signaling the fourth-quarter salvation investors and operators were banking on won\u2019t materialize.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>That said, week-over-week trends are improving (Aug &#8211; Oct) (highlighting the shorter booking window) and company commentary points to November, where we don\u2019t have data yet, for a positive rate inflection,\u201d observes Jonas. \u201cWhile the summer weakness was largely previewed by operators, we think a key question for investors in MGM and Caesars is whether a Q4 Strip inflection comes to fruition.\u201d<\/p>\n<\/blockquote>\n<p>That assessment arrives against the backdrop <a href=\"https:\/\/www.casino.org\/news\/las-vegas-casino-revenue-down-again\/\">of tepid visitation<\/a> and disappointing rev per available room (RevPAR) data \u2013 factors serving to <a href=\"https:\/\/www.casino.org\/news\/las-vegas-strip-sentiment-in-the-doldrums-says-analyst\/\">depress investor sentiment<\/a> toward Las Vegas Strip stocks. Jonas has \u201cbuy\u201d ratings on MGM and Caesars, which are the two largest Strip operators.<\/p>\n<h2>Las Vegas Casino Room Rates Trending Down in Q3<\/h2>\n<p>Upon delivering second-quarter results, <a href=\"https:\/\/www.casino.org\/news\/caesars-touts-digital-strength-as-las-vegas-casinos-lag\/\">both Caesars<\/a> and MGM told analysts and investors that the third quarter was unlikely to be much better than the prior period in Las Vegas, and that prognosis is proving accurate.<\/p>\n<div class=\"callout\">\n<p>Jonas says using MGM and Caesars as the proxies, third-quarter Strip room rates are tracking lower by 5% year over year, with weakness seen on both weekends and weekdays. The analyst said that in July, Strip room prices declined 4% at MGM venues and 10% at Caesars properties.<\/p>\n<\/div>\n<p>Compounding those woes is the point that August room rates on the Strip will decline year over year, due primarily to weekend declines. Jonas says September is shaping up to be another weak month with both weekday and weekend prices pacing lower compared to the year-earlier period, potentially making it difficult for October to mark the start of a legitimate rebound.<\/p>\n<p>\u201cWe are still seeing softness continue into October with rates trending lower Y\/Y for Strip Proxy\/MGM\/CZR&#8217;s -5%\/-14%\/-12% respectively,\u201d adds Jonas. \u201cThat said, management teams have more pointed to November as potentially driving any Q4 improvements. Overall, operators remain positive for Q4 and 2026 given the stronger event\/convention calendar.\u201d<\/p>\n<h2>Other High-End Strip Properties Showing Positive Signs<\/h2>\n<p>On the Strip, it\u2019s not all doom and gloom because outside the proxies of Caesars and MGM, there\u2019s evidence that room rates at some higher-tier properties are holding up well. Casino hotels in the \u201cother high-end\u201d camp are generally defined as those with average nightly rates of $250 and up. Jonas says that cohort is comprised of Fontainebleau, Venetian\/Palazzo, and Wynn\/Encore.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>For Q3, \u2018other high-end\u2019 rates are up +8% Y\/Y and +16% Y\/Y in October, which is consistent with higher-end consumer behavior trends we have been seeing this year,\u201d observes the analyst.<\/p>\n<\/blockquote>\n<p>This reporter recently visited <a href=\"https:\/\/www.casino.org\/news\/fontainebleau-loyalty-plan-strips-most-rewarding-for-slots-players\/\">Fontainebleau<\/a> on a Tuesday afternoon and can confirm a high level of foot traffic at the venue as well as brisk activity in the casino, including in the high-limit area.<\/p>\n<p>The post <a href=\"https:\/\/www.casino.org\/news\/las-vegas-casino-room-rate-boost-may-not-materialize-in-q4\/\">Las Vegas Casino Room Rate Boost May Not Materialize in Q4<\/a> appeared first on <a href=\"https:\/\/www.casino.org\/news\">Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Operators previously confirmed Q2 weakness and forecast more of the same for the current quarter Q4 was supposed to be better, but as of today, softness is seeping into October bookings and room rates As confirmed by downbeat second-quarter earnings reports from Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), the Las Vegas Strip is experiencing a period [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/409"}],"collection":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/comments?post=409"}],"version-history":[{"count":2,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/409\/revisions"}],"predecessor-version":[{"id":412,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/409\/revisions\/412"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/media\/411"}],"wp:attachment":[{"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/media?parent=409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/categories?post=409"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.chuckwardrealestate.com\/index.php\/wp-json\/wp\/v2\/tags?post=409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}