With Circa just publishing their hotel rates, which are on par with The Venetian, Bellagio, and Wynn, who exactly are they targeting? I say good luck getting those big dollars. It’s still downtown!
Circa’s official response is, “We anticipate visitors to want to experience Stadium Swim and the world’s largest sports book no matter where they’re staying. Circa is for modern travelers who desire a nonstop Vegas experience.”
Derek Stevens says, "What we’re seeing at The D and the Golden Gate is that there is a tremendous demand for more suites and more higher-end product. We felt a crunch from not having enough high-end product for quite a while now. It’s just an extension of the product. We’re going to open with 512 rooms. A number of those are going to be suites. So it’s not a tremendous number of keys coming to the Vegas market. It’s certainly some product that we felt wasn’t available in our two hotels currently."
Our thoughts: Given that Circa is downtown’s first megaresort and first wholly new casino in decades, owner Derek Stevens is clearly aiming to create some must-see cachet and to subliminally convey the message that Circa is as good as anything on the Strip -- and it looks to us like that just might be the case.
Also, from a purely business standpoint, the project is costing in the neighborhood of $850 million. Both The D and Golden Gate have been pledged as collateral against Circa’s successful completion. Stevens is clearly itching to generate cash flow, given that he moved up the opening of the casino and sports book to October 28, although hotel rooms won’t come on line until late December. Once they do, Stevens is evidently trying to get the utmost bang for his buck — and quickly.
It's something of a tradition in Las Vegas that when a new property opens, prices are high. We remember distinctly when the MGM Grand opened in 1993, admission prices for its amusement park struck us as ridiculously exorbitant, as if it competed with Disneyland. That's when we started noticing a trend toward casinos tacking a premium onto opening prices in order to maximize the return from early demand and, at the same time, to gauge what the market would bear. At the end of the "honeymoon" period, prices can -- and did, and presumably will -- slowly descend to equilibrium.
With the initial excitement, only 500 or so rooms to fill, and Stadium Swim included in the price, we're not surprised to see Strip-like room rates for Circa's hotel opening and beyond.
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Ray
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rokgpsman
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rokgpsman
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mhernandez116
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