Do the Trop and Mirage Closing Have Anything To Do with the Downturn?

Quite a few people have pointed to decreased visitors and gambling on the Strip as evidence that Las Vegas is finally facing consequences for its disregard for its customers. While I hope this is true, isn’t it possible that some of the decline is just due to the closure of The Mirage and the Tropicana in 2024?

[Editor's Note: This answer comes to you direct from our business writer, reporter, and blogger, David McKee.]

Quite the contrary.

The unanimous expectation of Wall Street stock analysts was that the closures of the Tropicana and The Mirage would improve room rates and occupancy levels.

In terms of the supply-and-demand equation, subtracting 4,511 hotel rooms from the Las Vegas Strip should have increased the need to stay at other properties, but few, if any, have been running at full capacity. Also, with fewer rooms on the market, rates at other properties ought to be going up, not trending downward, as has been the case, even on weekends.

Both properties were somewhat over the hill and the Tropicana, in particular, was no longer competitive. A series of owners and operators (Aztar Corp., Columbia Sussex, Penn Entertainment, Bally’s Corp., etc.) were unable to reverse the fortunes of an aged physical plant, regardless of the nostalgia with which it was associated. In addition, none of the owners had the critical mass of rooms or database to properly market the Tropicana, especially when having to compete with the masses of hotels and customer data that MGM Resorts International and Caesars Entertainment were able to deploy, with MGM’s alliance with Marriott International perhaps being the final nail in the coffin.

The Mirage, for its part, was a 35-year-old resort, old by Las Vegas standards and overdue for renewal. Its days of commanding top-tier room rates had long passed. This is almost certain to change for the better once Hard Rock International redoes the place and reopens it two years from now.

Also, the loss of international customers cannot be discounted (pardon the pun). We don't have to get into the reasons for this (and neither do you), but potential visitors from Canada, Mexico, and other countries are voting with their feet (and wallets) and shunning Las Vegas. Until that trend reverses, the fiscal fortunes of Sin City are unlikely to improve.

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Comments

sunny78 Jul-03-2025

reality

The cycle of ups and downs in any industry or service has been happening since day 1 for a myriad of reasons. Nothing is up forever, nothing is down forever, trees don't grow to the sky nor do they hit the core of the earth. Demand is high, prices go up. Demand is low, deals will start to appear more in Las Vegas or anywhere else. It's one big sine wave over the decades for every and any industry or service.

For those wishing las vegas would stop gouging and lower prices and offer more ad nauseam on this QOD, don't complain. Your ship appears to be coming in.

But get ready for the complaints regardless. 3, 2, 1.......

Why? Some people just like to complain regardless if it's sunny or cloudy or in between. Funny that.

Tim Soldan Jul-03-2025

Bed Bugs

It couldn't have helped the Tropicana to have had that widely publicized bedbug infestation. I know that put me off of ever staying there.

Lucky Jul-03-2025

Strip offers

I am seeing more and better offers from Caesars properties.  They are now coming in fast and furious.  More free play, more RFB, not just mid week but all week.  Free parking and valet.  I am waiting for them to loosen up the machines and games.  That has to be the next push.  The main thing that will get people in the door is feeling like there might be a chance to win.  Not like the strip is now.

Randall Ward Jul-03-2025

downturn

I'm not optimistic, in the past Vegas has just done strange things not necessarily good changes.  I remember when Excalibur put dancers on the tables and had those fake cookers at the entrance to show how naughty they were.

John Dulley Jul-03-2025

Bed bugs trop??

I actually really liked to stay at the trop but the casino and restaurants were just so dead that  it gave off a terrible vibe. The mirage was ok but didn’t visit it enough to give a fair opinion.

William Nye Jul-03-2025

was more fun

We first came to Las Vegas in 2003, it was fun.  Free beads to wear, free t-shirts and hats (New York-New York) with lots  of just enjoyable 'stuff' to do.  No more, sorry.

Chris Heber Jul-03-2025

Canadian here

I’m not coming from Canada because of politics, I’m not coming because our exchange rate remains in the dumper. I’ll be back as soon as our dollar rebounds!

sunny78 Jul-03-2025

Chris

100%. I have some Canadian friends and they said the same exact thing, the exchange rate is the issue. Can't blame you. Prebaked losses at the gate, looks like now for 1 Canadian dollar a Canadian only gets .79 cents American Dollar. We did the same in not going to Canada when the exchange rate went the other way.

Hoppy Jul-03-2025

Chris Heber

Would you please bring some Crown Royal.

Question of the Day - 03 July 2025

Comments