LAS VEGAS-When asked whether room rates in Las Vegas support new hotel construction, Mike Mixer, managing partner of Colliers International-Las Vegas, tells GlobeSt.com that with more than 150,000 hotel rooms in Las Vegas, it might still be several more years before there is new construction.
The positives, he says, are that “investors can now realize strong returns by buying existing properties below replacement cost.” Investing in non-room amenities can capitalize on the high levels of visitor volume to Las Vegas, he tells GlobeSt.com.
He continues to note that those opportunities include retail development of many kinds, including restaurants, entertainment and attractions. “The average spend per tourist is now much more diversified over the spectrum of offerings Las Vegas has to offer,” he says. “In the old days, a majority of each dollar spent went to gaming, now; gaming is a much smaller percentage.”
He adds that “This is a healthy evolution and diversification of out gaming industry and will prove to be more attractive to investors going forward.”
To read more about new investments in the gaming market, check out this recent GlobeSt.com article on the subject. What are your thoughts on Vegas construction?