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Cheaper Stay To Come

By Chuckmonster on Tuesday, 20th September 2005 6:45pm
  » filed under Las Vegas  comments: 0


Shares of casino operators fell for a second straight day on Tuesday after some analysts said room rates in Las Vegas may be heading lower.

Shares of Harrah's Entertainment Inc, the world's largest gambling company, fell 3.8 percent, on the New York Stock Exchange, while shares of No. 2 casino operator MGM Mirage 3.9 percent.

"Although it is still early, we are beginning to notice a negative trend in our weekly revisit rates," Merrill Lynch analyst David Anders said in a report, referring to the difference between a quoted hotel rate four weeks in advance and the cost of the same room booked the day before arrival.

For a mid-September booking, the price of a room at Caesars Palace, owned by Harrah's, fell to $300 from $600 and rates at MGM's Bellagio dropped to $299 from $499, the analyst said.

"If this trend continues, we believe it could encourage customers to either rebook at lower room rates or at least hold out until the last minute to book rooms," Anders said.

But others said individual travelers are a relatively small part of overall business at large casinos which derive more business from conventions and group meetings, which are seeing strong demand.



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