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2010 Room Rate Study : The CityCenter Edition

By Chuckmonster on Monday, 1st March 2010 4:11am
  » filed under Las Vegas  comments: 6


In case you haven't heard, Spring is almost here. Um... yeah... it is if you - like that little critter named "Poughkeepsie Pai Gow Phil" - set your watch by Vegas casino offers. Shit, who doesn't!

The Spring themed rash of email deals has given us the itch and scratch it, we must. This time around, we've got a slew of brand new resorts to throw into the room rate spreadsheet hopper. Put your conjecture down for a moment and join us as we look at the only numbers that count - room rates - to see what the future brings.

For this study, we've scraped the daily hotel rate data - every non-sold out day from March 1 to April 30, 2010 - directly from casino websites and dumped em into an excel spreadsheet. The chosen resorts focus primarily on CityCenter and other offerings which appear to be in direct competition. The properties included are: Caesars Palace (Augustus Tower Standard), Mandarin Oriental (Executive), Encore Las Vegas (Panoramic), Hotel 32 at Monte Carlo (in total), Aria (Standard), Bellagio (Standard). Of all the resorts we sampled, only Hotel 32 charged a resort fee - $20.16, prices in the study do not include the resort fee.

Before we dig into the data, we should take a moment to sound the death knell... *bong* ...the days of getting a five star hotel room on the Las Vegas Strip for under $100 bucks/night appear to be in the rear view mirror along with a whole bunch of other recession related carnage. For bargain hunters, it surely sucks, for the good of mankind, this is a good thing. Viva Las Vegas!

Based on our data, for the months of March & April 2010, the average daily rate you can expect to pay for higher end five star hotel will be $265.92 per night. Of the six resorts in this study, three feature average daily rates higher than the overall average - Mandarin Oriental, Encore Las Vegas and Caesars Palace. Of the remaining three, Bellagio - a name synonymous with the very concept of Las Vegas luxury - and ARIA - the newest resort on the Las Vegas strip - were both bested by Monte Carlo's boutique addition, Hotel 32 (not including Hotel 32's resort fees.)

Average Daily Rates

The average daily rates: Mandarin Oriental (avg $378.27/nt), Encore Las Vegas (avg $321.70/nt), Caesars Palace ($289.75/nt), Hotel 32 ($215 + $20 resort fee/nt), Bellagio ($203.75/nt) and Aria ($186.05/nt).

Average Daily Rates

One of the questions most often pontificated upon in Las Vegas casino biz circles is how ARIA will fit into MGM Mirage's line up. For almost ten years, Bellagio has been alone at the top of its MGM Mirage's pecking order. The answer can be found when looking at the spiky, demand driven, weekend rates at Bellagio. For ARIA, and its seemingly ever-present national TV advertising campaign, this isn't good news.


Other than Mandarin Oriental, MGM Mirage seems to have hit the mid-week ceiling at the $150-180 price point. A cursory check of similarly star rated properties Palazzo and Venetian, puts their average daily rate in exactly the same echelon*. If you are eyeballing rates for other MGM owned properties (save Skylofts and THEhotel) and get quoted $120+/nt midweek, you're getting ripped.

One other interesting finding in the data is how Caesars Palace's Augustus Tower rooms (brown) are running in almost the same league as Encore (yellow), even beating out Mandarin Oriental (pink) on occasion. Check this out:


Also worth noting is the slowly increasing rates of Mandarin Oriental. I'm not sure if this is due to growing brand recognition in the market, greater demand as spring and summer arrive, or a function of quoting higher rates to 45 day+ advance bookers.

The spikes in Hotel 32's rates are primarily due to lower rate rooms being completely unavailable or sold out for those dates, they don't appear to be riding the fader on room rate pricing in the same way that Encore does.

Overall, I'm somewhat shocked to see ARIA choking on the absolute bottom of a study which was essentially built around it. Nothing is more telling about a resort's state of health and well being than running room rates through their paces. If anything, this study lends further evidence to the oft repeated theory that ARIA wasn't built to top or replace Bellagio, but instead be a brand new version of the same 4.5 star MGM Mirage resorts we all know and luv - THEhotel/Mandalay Bay, MGM Grand and Mirage.

*: sniff.



Comments & Discussion:

I'm surprised, but glad that MGM is deciding to let Bellagio remain the King of the Hill. I think ARIA fits in much better with the Mandalay class. It's a nice property, but it doesn't have the legacy that makes Bellagio a sacred name. Now if only they'd get rid of the tube TV's.

This is fantastic stuff. It's like Consumer Reports for Vegas hotel fans. And there's no subscription required.

I'd really like to see Bellagio go through a room upgrade. Those standard rooms are getting dated.....The tube TV is a laugher when you consider that Four Queens, The Fremont, Circus Circus or Excalibur have standard room offerings that include a flat screen t.v. Granted, the Bellagio service is still in a whole 'nother league, it sure would be great to see them upgrade the rooms to be a bit more modern day tech wise.

Great information. Thanks!
Saw part of an analyst report that said overall rates on the Strip are up 4% for the last week of March. Weekday rates 9%, weekend -4%. Average rate was 27% higher in 2007, the peak of the market. Report also said weekday rates at Aria 2% above Bellagio going into Q2, but weekend rates are 11% below Bellagio. It may be the end of the year before Aria finds its footing, but your study shows the power of Steve Wynn designed and built properties. MGM just can't compare, imo.

One comment on rates and this study- Most bookings in come from OTA's or Online Travel Agents such as Expedia, Obitz, Vegas.com, etc.

Many hotel are offering 20-30% discounts off thier retail rates, i.e website rates. Is that good business, no.....but many booking are coming from these channels and so we have "given up" on direct bookings and let these channels do what they do......I would say the that NET ADR per night that is shown here is 20-50% less than the study shows.......

LV Sun catches up to your post with this story on Bellagio vs Aria rates. The jury's still out as far as I'm concerned regardless of what Jim Murren says.

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