Strip room rates ‘lower than expected’ in third quarter, analyst says
Less than a month ago, the Strip’s two largest casino companies told investors and analysts that autumn hotel bookings would help Las Vegas bounce back from the summer slowdown.
Based on recent data collection, at least one gaming industry analyst says room rates on the Strip in the third quarter of 2025 are lower than expected.
“Our latest (Las Vegas) Strip room survey continues to highlight a choppy summer while our early look into October is not all that encouraging,” wrote Barry Jonas, of Truist Securities, in an Aug. 26 investors note.
Jonas said, “September data shows rates continuing to trend lower,” while “early October read is still soft (year-over-year).”
During their respective second-quarter earnings calls, executives from Caesars Entertainment and MGM Resorts International downplayed the city’s recent decline in visitors, chalking it up to a variety of factors, including difficult year-over-year comparisons and typical seasonal declines.
However, a growing segment of visitors blames the absence of value and nickel-and-diming practices as reasons to avoid coming to Las Vegas, while others suggest political policies are having a detrimental effect.
Nonetheless, both Caesars and MGM, which combined operate 17 resorts on Las Vegas Boulevard, pointed to November for noticeable improvement. The casino executives said the combination of the Formula One Las Vegas Grand Prix, multiple high-attendance conventions and shows, and the city’s live entertainment calendar around that time gave them confidence for the second half of 2025 and the start of next year.
“Las Vegas is as solid as ever and MGM couldn’t be better positioned to benefit by all of it,” MGM Resorts International President and CEO Bill Hornbuckle said during the company’s earnings call on July 30. “Given the scale and scope of what we do and how we offer it … we are excited by (the) fourth quarter and particularly what happens into 2026.”
A day earlier, Tom Reeg, CEO of Reno-based Caesars Entertainment, said future hotel room bookings had “stabilized” after the summer declines. Reeg warned that the third quarter would look “like the second quarter on a comparative basis,” but expressed optimism going forward.
“As we look to the fourth quarter of this year, first and second quarter of 2026, (there is) a very strong group calendar for us,” Reeg said during the late-July earnings call. “So, we think this is a temporary phenomenon in Vegas. But make no mistake, the summer is soft in Vegas.”
Jonas provided several data points in his recent note that suggests the summer swoon is coming to an end, including week-over-week improvements for August, September and October bookings.
“While the summer weakness was largely previewed by operators, we think a key question for investors in MGM and Caesars is whether a Q4 Strip inflection comes to fruition,” he wrote.
Truist’s room rate survey is conducted weekly by tracking 13 weeks of forward internet room rates for 28 casinos across the Strip. The survey tracks leisure rates using the lowest available room prices.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
