Those tireless analysts at J.P. Morgan have been crunching numbers again and found that, during the June 19-25 period, Strip room rates are up 24% from last year, from average ADR of $148 to $183, driven by vastly — i.e., 35% — higher prices at Caesars Entertainment hotels. Of course, whether or not this is good news depends on whether you are an operator or a customer.
Midweek rates, actually, are quite stable, up only 2%. But hold onto your wallet if you’re booking a weekend stay — those are costing 59% more. Weekend rates were on the decline through much of 2010 (and this report is but a snapshot), so at least some degree of “market correction” was due. For January-March, room prices rose 6% midweek and double that on weekends.
Looking ahead to July-September, Morgan analysts foresee a 7% dip in weekend rates, while weekday rooms will be up 5%. Only Caesars properties are expected to see higher weekend rates in this period. If you really must blow money, stay at The Cosmopolitan, which is selling rooms midweek for $175, bouncing up to $323 on weekends. Venelazzo hasn’t been able to gain traction this year and is to losing ground in the next quarter. Last year at this time, it was posting 6% rate gains. Caesars, however, has been doing steadily better.
At least Sands finally opened the doors of its 300-room hotel and convention space at Sands Bethlehem. Initial occupancy was solid and the facility is expected to help retain the table-game players who are the casino’s best revenue source. LVS’ saying it will proceed with the (contractually mandatory) event center and retail mall doesn’t mean much in itself but it does sound as though the era of delay, delay, delay in Pennsylvania has come to a close. Let’s hope so.
Keystone Kops. “No applicant was ever deemed unsuitable,” a grand jury says of the 
Pennsylvania Gaming Control Board, one of the most dysfunctional such bodies in the nation, rife with political cronyism. Everything from Don Barden‘s gambling problem to applicants’ issues with tax evasion, Mob ties and murder was swept under the rug in the PGCB’s zeal to get casinos up and running, quoth the report. Acting as advocates for casino applicants, regulators actively suppressed evidence, according to the grand jury. Although no indictments were handed down, 21 changes were proposed, including stripping the Board of its investigative function. It’s been clear for a while that change is needed and hopefully the grand-jury report will spur lawmakers to action.
