Question of the Day - 27 August 2024

We asked a couple of stock analysts about your specific dates in October and they couldn't see much cause-effect with the room closures. 

But for a long time, Wall Street has been anticipating upward movement in room rates once the Mirage and Tropicana were off the market. Subtracting 4,411 hotel rooms in two fell swoops will do that. 

Interestingly, analyst expectations have been that all rates, from Casino Royale's right up to Wynn Las Vegas’s, will benefit. Normally, the mid-market (Mirage) and low-end (Trop) competitors would see a price boost. But the economic expectations in the rest of the country generally don't apply to the Las Vegas Strip.

On the other hand, with nearly 160,000 rooms here, the Mirage and Trop inventory amounts to less than 3% of the total, so how much of a difference it might make is tenebrous at best.

One thing we do know, your rates aren't elevated due to the Las Vegas Raiders. They’ll be playing on the road that week, in Inglewood, guests of the Los Angeles Rams.

So it might just be that the 80,000 people anticipated to attend the 2024 Fall NASCAR Weekend in Las Vegas, combined with the every-excuse-to-raise-room-rates tendency these days, explain the situation.