Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Amid an overall drab picture painted this week by the latest visitor and gaming revenue data—Strip gaming revenue down 24%; average daily room rate down 23%; convention attendance down 35%–there were a few bright spots. February performance data were released Tuesday by the Nevada Gaming Commission and the Las Vegas Convention and Visitors Bureau.

While gaming revenue in Clark County as a whole declined approximately 18%–due largely to the big decline on the Strip—Downtown gaming revenue declined by just 11%. The North Las Vegas and Boulder Strip markets actually posted increases in gaming revenue but in each case the increase is due to a new casino property, the Eastside Cannery on the Boulder Strip and Aliante Station in North Las Vegas. The relatively tiny Mesquite market posted a 0.7% increase in gaming revenue.

“There is a lot of distortion in the February numbers with the shift in the Chinese New Year [to January from its typical February], the Super Bowl [not occurring as far into February as usual] and Leap Year that it’s very difficult to [draw any conclusions about overall market direction],” Gaming Control Board senior research analyst Frank Streshley tells GlobeSt.com. “But with one less day in the month the decline in hotel occupancy was not as big [as it could have been], which may mean we are nearing the bottom of a U-shaped, or even a V-shaped, recovery.”

Indeed, the declines in occupancy in February were smaller than the declines in January. Hotel occupancy in February 2009 was 83.9%, a decline of 550 basis points from 92.7% in February 2008. Year-to-date, average hotel occupancy in 2009 is 81.5%, down 910 basis points compared to the first two months of 2008.

Weekend occupancy in February came in at 91.1%, down just 110 basis points from 92.9% in February 2008. Year-to-date, weekend occupancy stands at 85.4%, down 250 basis points from 87.9% through the first two months of 2008. Midweek occupancy in February came in at 80.5%, down 710 basis points from February 2008. Year-to-date, midweek occupancy stands at 74.1%, down 1,260 basis points from 86.7% through the first two months of 2008.

Streshley expects the declines in gaming revenue to shrink from the mid teens percentage-wise into the single digits as the year progresses, regardless of whether a recovery has begun or not. That is because year-over-year comparison gets easier after March, when gaming revenue in 2008 began falling farther behind 2007.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.