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Question of the Day - 01 September 2020

Q:

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!

A:

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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Comments

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  • Ray Sep-01-2020
    Really?
    You'd think that their benchmark would be more Golden Nugget than high-end strip properties. For comparison, I checked room rates for non-weekend in January, least expensive room. On 01/10 Circa,  $179+33.84 resort fee, Bellagio, $149+45.00 RF, Golden Nugget, $59+19.99 RF. I think the "new smell" of Circa will wear off real fast. When we go to Vegas next year, we'll walk in, look it over, maybe gamble a little, but certainly not stay.

  • Pat Higgins Sep-01-2020
    Big Tex
    Look forward to seeing the place as we will neon Vegas in October but leave on the 27th so will miss the “grand opening.”  Maybe next trip. Will not pay those rates.  
    

  • rokgpsman Sep-01-2020
    Room rates higher than Venetian or Bellagio?
    If the economy was going great, if there was no ongoing covid crisis and if there were a record numbers of visitors to Las Vegas then those Circa room prices would probably get paid by people that wanted to be among the first guests at a new place. But under current conditions I'm not sure the rooms will sell for those prices for very long. No matter how nice Circa is it's still located downtown and that alone will deter some people. I guess Mr Stevens is hoping you'll arrive at Circa and stay there your entire vacation, enjoy all the niceness it has and not venture out into the surrounding area (or look out the hotel windows). I love the downtown area, I'm just a regular guy, but those high room rates will cause people to have certain expectations for a resort located that far from the airport in a 3 star neighborhood. You can overbuild in any neighborhood and not be able to command the prices you want. I hope it works out but some adjustments will probably be coming along.

  • Jerry Patey Sep-01-2020
    circa
    I guess there are some people who come to Vegas to just enjoy view from their 200 dollar per night suite. Me I use my 40 dollar room to sleep shower and take short rest break. Rest of time I am in casino somewhere. Do I need 200/d room for this. They do not say how many suites they have. That is their wish price. When reality kicks in these prices will not hold. 
    Would like to also add comment on Covid which shut you down. CDC quietly released truthful stats. There have been 9000 deaths due to patients with Covid alone .  This far below the 3 mil forecast and what shut the country down. The remaining deaths are from comorbities not the virus. Twitter has censored this this data even when pres quoted. As mentioned here 94 % of deaths are from these other diseases. Ex. MI( hear attack)!stroke ET’s. Thus it is mainly flu like virus effecting people past 65. Flu kills 60 k alone. They don’t count comirbities with flu. This is what shut country down for 7 months. You are safe in Vegas 

  • Luis Sep-01-2020
    Not for long
    This, as well as other "new" hotel casinos will open some eyes, it's new, you're suposed to kick the tires, but how well will it fair in the long run?, don't be surprised that it starts and fairs similarly to the now gone "lucky dragon". Vegas needs to atract anew all the people, common, every day people, not just whales. Shure everybody likes to splurge once in a while, if the economy permits it, it doesn't right now, but every one whants to have a good time and do it in an economical way, have a good time and forget (at least for a while) al the actual problems, and Vegas is not giving it to them, so, what if instead of thinking up ways to jack up prices, think of ways to atract everybody, like lowering prices, geting rid of parking fees ( permantently), geting rid of illegal resort fees ( witch you know they are), thinking of ways to re - institute buffets, whith social distancing, atracting families ( there are places for it), atracting the common working man, etc.

  • rokgpsman Sep-01-2020
    Vegas is safe??
    @Jerry
    The local Las Vegas tv station channel 3 reported yesterday that Nevada has the highest covid transmission rate in the entire USA, data according to Nevada's own Health District agency  You might doubt how this is measured. But because of the huge negative impact that info can have on tourism and business in Las Vegas and Nevada I think we can be sure that no local tv station would report it if it wasn't true. Too many people would quickly shoot it down if they could. No one reputable in Las Vegas or Nevada is refuting the story or the data, it's true and that's why the bars are closed for now. No one likes it, but it is what it is. Vegas is probably safe for some people if you take precautions, but it's not as safe as it was in 2019. Covid is present and available to latch onto anyone that happens to encounter it.
    
    Back on topic - I'm looking forward to seeing the Circa, especially the pool area with its huge tv screens.

  • Jxs Sep-01-2020
    Please don’t question Dr. Jerry
    Jerry Patey must be correct since he’s a doctor, as he’s mentioned a few times before. Can’t you tell by his educated-sounding responses and second grade grammar?

  • Roy Furukawa Sep-01-2020
    Dreaming
    I don't think people will pay that much to stay downtown, it's a different crowd. I like Stevens is trying something new and maybe he's right and there will be a new breed of young, clubbing and drinking "downtown high roller" and we're just all blind to that future. Naaah!

  • Michael Crunk Sep-01-2020
    Circa will do well
    I can’t wait to visit Circa. I am not worried about room rates. I will gamble enough to get comped anyway. If you are concerned about the rates there are many other choices with lower prices. Circa is restricting kids and building very attractive adult playgrounds. Bars, incredible Sports Book, pool theater with sports viewing and wagering. They are not trying to attract bargain hunters. If they execute as well as they have planned they will be filled with the young crowd and true gamblers they are aiming for. 

  • Carl LaFong Sep-01-2020
    "Dr." Jerry 
    You are completely wrong about the CDC "quietly" changing their stats. You bought into actual fake news.
    There are many sources that prove you wrong, but here is one local to me:  https://www.freep.com/story/news/politics/elections/2020/09/01/cdc-coronavirus-underlying-conditions-covid-19/3453988001/
    
    BTW, please, for the benefit of everyone who comes to this feature for basic Las Vegas information and discussion, kindly keep your personal politics to yourself. You come across as feeble-minded and rather silly.

  • AyeCarambaPoker Sep-01-2020
    @“Doctor” Jerry
    If you were a real doctor would you not have diagnosed yourself with Dunning-Kruger effect by now?
    
    That or something psychological anyway! 

  • mhernandez116 Sep-02-2020
    Undervalued asset
    LVA, please consider giving Jerry his own blog. I think his vast knowledge and incisive analysis would be a valuable addition to your site. There's no reason a site called Las Vegas Advisor should focus on Las Vegas advice. 

  • Sep-04-2020
    Circa color scheme
    The one thing that jumped out at me that I haven't heard anyone anywhere comment about is Circa's color scheme.  I was shocked when I saw a color rendering of the building.  It is all in "cold" colors, i.e., the wintry north:  white, blue, violet, lavender, purple, black.  This is the exact opposite of the colors that are well known (and scientifically proven) to stimulate the greatest enticement in food and entertainment:  red, orange, yellow and green.  A casino should want to be perceived as "hot" and "alive", not as cold and dead.  I have no idea why the Powers That Be chose such a poor color scheme.  I think that this will work against people visiting there, especially in the winter.

  • Sharon Sep-06-2020
    The POWER of Stevens 
    Don’t underestimate.....:Derek is a VISIONARY.... I applaud him for his efforts in turning the downtown into a FABULOUS place to be.  I think he’s SPOT ON in his attempt!!!  I’ve been traveling to Vegas for many years, always staying downtown for half of my 15 day trip. Since Derek has come on the scene things have changed dramatically.  I can’t wait to see how Circa turns out!!  And I’m a senior citizen!!