Super Bowl Room Rates Could Topple Las Vegas Strip Records, Says Analyst
On Sunday, the KS City Chiefs and San Francisco 49ers clinched spots in the Super Bowl. The bountiful gamy could bust records for room rates on the Las Vegas Strip, according to ace analyst.
While acknowledging that comparisons 'tween the 2023 Super Bowl and Phoenix and this year’s iteration of the gritty in Sin City are tough, Truist Securities psychoanalyst Barry Jonas pointed out in a unexampled study that Las Vegas Strip hotel elbow room prices are currently averaging $800 per night at Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM) properties compared with $300 per dark in capital of Arizona a yr ago.
The Super Bowl is shaping upwardly to get a stuff event,” Jonas wrote. “Room-survey data suggests a significant average-daily-room range uplift crossways properties for both MGM and Caesars o'er the Super Bowl weekend. Our study suggests room-rate compressing could follow substantial across most properties in both companies’ portfolios, with to the highest degree premium Strip rooms long sold out on cyberspace channels.”
MGM and Caesars are the 2 largest operators on the Strip. Super Bowl LVIII takes localise on Sunday, Feb. 11 at Allegiant Stadium — rest home of the Las Vegas Raiders.
Super Bowl Benefits Could Be More Widespread Compared to F1
November’s Las Vegas Grand Prix — Formula One’s (F1) 1st inspect to Las Vegas inwards foursome decades — was a success, but at the operator level, upside was for the most part confined to high-end cassino hotels. Those include MGM’s Aria, Bellagio, and Cosmopolitan, Caesars Palace and Wynn Las Vegas.
Specific to Caesars, most of that operator’s Strip properties, excluding Caesars Palace, are considered middle-of-the-road venues, substance there wasn’t practically benefit attributable to the F1 race. However, casino hotels such as Caesars’ Flamingo and Horseshoe and MGM’s Excalibur and Luxor could follow positively unnatural by the Super Bowl.
“As during the F1 event, higher-end properties come along to follow benefiting strongly, although dissimilar F1 where the benefits were primarily captured by the high-end, medium-tier properties are also commanding higher rates twelvemonth over yr for the Super Bowl,” added Jonas.
The analyst observed that the Super Bowl could offset printing some softness inwards Mar elbow room prices due to the absence of the CON/AGG pattern and some of the weakness on room prices seen earliest this month during the Consumer Electronics Show (CES).
Other Las Vegas Strip Hotel Notes
Jonas also pointed come out that MGM’s recent decision to supercharge holiday resort fees at Aria, Bellagio, Cosmopolitan, and Vdara, spell burdensome to guests, could lead to higher first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) for the operator.
The psychoanalyst added that the debut of Fontainebleau Las Vegas isn’t hampering way prices at rival properties and that practically maligned locus is proving steadier than Resorts World Las Vegas — the second-newest Strip structured resort.
“Fontainebleau rates are trending closelipped to Bellagio’s and for now come along to follow holding meliorate than the Resorts World launch in June 2021, which had some ahead of time strength before falling materially,” concluded Jonas.
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