Las Vegas Convention Center expansion will spur tourism growth, analyst says

The completion of the Las Vegas Convention Center’s $600 million renovation later this year lines up with the optimism casino companies have expressed about potential record growth in group sales in 2026.

A gaming industry analyst connected those dots in a report issued Tuesday previewing the third-quarter earnings season that begins this week.

The infrastructure investment is expected to be similar to the growth in Southern Nevada that followed the 2012 opening of the $2.4 billion Terminal 3 at what was then McCarran International Airport.

“With the $600 million Phase 3 LVCVA expansion almost complete, the head of the Las Vegas tourism agency (Las Vegas Convention and Visitors Authority President and CEO Steve Hill) recently highlighted that visitation looks ‘exceptionally strong’ over the next 15 months, further supporting the 2026 growth narrative,” said industry analyst Barry Jonas of Atlanta-based Truist Securities in a note to investors.

“Most operators believe that ‘The Vegas is expensive’ narrative is somewhat overdone, but we think Strip operators at a minimum will be more cognizant of delivering value to all ranges of customers,” Jonas wrote.

The LVCVA board of directors has received monthly updates this year about the progress being made on the Las Vegas Convention Center expansion and renovation.

It has taken the better part of three years through planning and delays that began in the early 2000s to complete the renovation, which is expected to be ready in time for January’s CES trade show.

30 percent expansion

When everything is completed, the Convention Center will have changed capacity from 1.9 million square feet to 2.5 million square feet, and that 30 percent increase in available space is expected to translate into 30 percent more convention visits.

The Convention Center’s footprint has been destined for expansion since June 2021 when the West Hall fronting Convention Center Drive first opened. Since that opening, the last phase of the project involved closing portions of the North, Central and South halls over six-month periods so that some parts of the Convention Center could stay open while builders completed work hall by hall.

The objective of the renovation is to bring the North, Central and South halls up to the physical and technological standards set at the West Hall.

Hill said at a tour of the construction site in June that one of the renovation’s best enhancements is a climate-controlled corridor that will link the North and South halls and keep conventioneers out of inclement weather or scorching summer temperatures. It’s also the most expensive enhancement. Once completed, the new concourse will enable conventioneers the ability to walk to any exhibition hall without ever going outdoors.

“You had to go outside when it’s raining or when it’s hot or humid or cold,” Hill said at the time. “That’s not a great experience. So about half of the expense in the renovation is in what you see in the front of the building.”

Generating growth

Brendan Bussmann, an industry analyst with Las Vegas-based B Global, said the Convention Center renovation is another example of how infrastructure has the potential to generate growth. He cited projects at Harry Reid International Airport and the construction of Allegiant Stadium as examples of how infrastructure can spur the economy.

“We continue to see the benefits from the Southern Nevada Tourism Infrastructure Committee (SNTIC) that invested in the future of the destination with the stadium and Convention Center expansion.,” Bussmann said in an email. “These projects benefit the entire destination and have long-term economic impact for Las Vegas.”

Bussmann noted that the controversial decision during the Great Recession to go ahead with the development of Terminal 3 at the airport turned out to be the right move by the Clark County Commission.

“Just as the bold decision in the Great Recession to expand that airport with T3 helped advance the destination, doubling down on that investment to modernize and expand our existing airport will have the same level of long-term impact on the destination as we seek to expand markets, especially those internationally,” Bussmann said.

Bussmann also said it’s important to Las Vegas’ competitive advantage to stay aggressive with infrastructure development.

“It’s unfortunate that the airport did not set up the fund it discussed with the SNTIC to pay for our much-needed upgrades and expansion within the existing footprint or the Ivanpah airport,” he said. “Had we added just $5 to every flight coming in and out of Las Vegas, you would have billions of dollars ready to invest into our airport infrastructure.”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.