No Vacancy: The Impact Las Vegas Casino Closures Will Have On You

What's gonna happen to us Vegas Trippers when all these joints are closed?

Posted by Chuckmonster

Some possible scenarios

1) Downtown occupancy rates bump higher, absorbing the clientele left hanging by the closure of the premiere lower-mid tier casinos.

2) Sahara, Stratosphere, Circus-Circus, Hooters, Palace Station, Gold Coast and Orleans and the new South Coast see an increase as well, and their prices will rise as a result of the greater demand at their properties.

3) Higher end resorts will probably tick slightly higher rates due to higher demand overall. Both Encore at Wynn Las Vegas and The Palazzo at Venetian will be ADDING to the higher tier room inventory.

4) Increased prices and demand mid range resorts LuXor, NYNY, Monte Carlo, Excalibur and MGM Grand as they absorb Trop, Flamingo and Ballys clients.

5) Industry wise, it may appear that the winner during these times may be MGM Mirage. They are only going to lose 640 rooms at Boardwalk, while Harrah's, Boyd, Aztar and Ruffin at New Frontier will be locking up a bunch of their golden geese or their only games in town.

This is all prognostication here. I've got zero idea how any of this stuff is going to pan out... with the exeption of room inventory. Lower supply coupled with high demand usually plays itself out by increased prices for the limited supply. Manufacturers (the casino) usually combat high demand by increasing supply, slowly and at a premium price.

Does this mean you're going to be bidding for rooms on eBay like Radiohead tickets? Doubt it. There's always Atlantic City or Tahoe.

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Comments & Discussion

Aren't there going to be additioanl rooms from CityCenter, Cosmopolitan, and Palazzo comming online?

Yes. Palazzo will open 3025 rooms in late 2007. Cosmo will have mostly condos and some hotel units open late 2008 - if they complete financing and meet construction deadlines - doubtful since they've barely scratched the surface there. CityCenter won't open until 2010, although some sections may be ready before then.

You also have some additional inventory from the condo/hotel towers being added at MGM. I would expect Station and Coast would absorb some of the demand. I'm already at the point where one of every three trips, I'm staying off the Strip.

Ah yes Atlantic City or Tahoe. Let's see... take a wrong turn in AC... step one block away from the Boardwalk and say hello to half a dozen muggers. Tahoe is also a distant dream for any of us East-Coasters. As they say in Maine "you can't get there from here". Of course those of us here in Boston (who LOVE Vegas) have our "Indian Gaming" options like Foxwoods and Mohegan Sun, but who wants to stay and play in a one-act town? Oh well there is always the "Lady Luck" sailing out of Lynn harbor on a 3-hour gambling cruise!

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