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Las Vegas Weekend Rates Down, Flat Mid-Week

Advance weekend room rates for the Strip are down 14.3 percent to $212 for the three-week period ending Sept. 15, while weekday room rates are virtually the same as last year's during the 21-day period, according to a survey by the Wall Street investment banking firm of Bear, Stearns & Co.

The trends were witnessed by Bear, Stearns financial analysts Jason Ader and Marc Falcone during July and August business trips to Las Vegas.

"Throughout the summer period this was the first time we've seen some declines and flattening out," Falcone said. "We saw some decelerating growth earlier in the year."

The financial community has argued in recent months that despite national trends to the contrary, Las Vegas business travel remains strong, helping boost mid-week room rates, especially at the newest Strip properties.

"We believe there's a bifurcation on the Strip with the newest and best properties garnering demand," Falcone noted, pointing to Bellagio, the Venetian, MGM Grand and Mandalay Bay as the beneficiaries of that trend.

He views Excalibur, Stardust, the Tropicana, Circus Circus and Treasure Island as its victims.

Average weekday room rates are up just 0.8 percent on the Strip to $143 for the three weeks ending Sept. 15, according to the Bear, Stearns survey.

"I think it's economic trends and some seasonality related to the convention business," said Falcone, who expects Las Vegas convention business to begin a three-month surge some time next month.

Bear, Stearns has conducted a weekly phone survey of Strip hotel rates for the last four years, and 22 Strip properties were contacted for the most recent.

"Convention bookings are either even or slightly above last year's pace going into the third and fourth quarters, although Comdex is showing some signs of weakness," Falcone reflected.

Comdex is the annual computer trade show at the Las Vegas Convention Center and the Sands Expo and Convention Center that draws as many as 200,000 people annually, although that figure has dropped in recent years.

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