The Short Take:
- Enterprise-wide RevPAR at CZR came in at $123.06 in Q3, a YoY decrease of 4.72%.
- RevPAR at its Vegas hotels was 130.50, down 3.57% YoY.
- Non-Vegas hotel RevPAR declined 7.16% to $109.45.
When Caesars Entertainment (CZR) issued their third quarter 2018 report it contained some disappointing data on RevPAR (Revenue Per Available Room) as well as hotel occupancy.
Enterprise-wide, the company’s Q3 2018 RevPAR was down year-over-year by 4.72% compared to the same quarter in 2017. The revenue per room at all of the CZR hotels combined came in at $123.06 versus $129.15 in Q3 2017.
Related to RevPAR, the average daily rate (ADR) was also down for the quarter. Occupancy, too, was lower. Enterprise-wide occupancy for Q3 was 91.8%. A year earlier occupancy stood at 94.6%.
RevPAR at the CZR Las Vegas hotels was both higher on a dollar value and smaller on a YoY basis. The Q3 RevPAR for the Vegas hotels came in at $130.50 which represents a 3.57% decline over Q3 of 2017.
While RevPAR was lower, the ADR ticked slightly higher at the Vegas hotels – read about CZR ADR here. Occupancy, on the other hand, dropped sharply in Las Vegas. The combined portfolio of CZR Vegas hotels saw the third quarter occupancy rate decline from 96.1% last year to 92.6% this year.
Other U.S. Properties
Caesars combines all properties outside of LasVegas into a category it calls All Other U.S. The largest group of hotels in this category is probably its three Atlantic City properties, but it also contains every other hotel it operates in the U.S. outside of Vegas.
The RevPAR for this non-Vegas group had an even worse decline than the Vegas properties. The Q3 YoY slide was 7.16%, dropping from $117.89 last year to $109.45 this year.
Like RevPAR, ADR for the non-Vegas hotels dropped. So did the occupancy rate. The Q3 occupancy was 90.2% for the quarter. This was down from 91.8% for the same quarter last year.
Here are a couple of charts that show the RevPAR for CZR as well as the Q3 2018 / Q2 2018 YoY RevPAR change:
Caesars’ Las Vegas competitors also had a rough quarter in terms of RevPAR. Las Vegas Sands saw its RevPAR decline 3.2% at its Las Vegas hotels. The LVS RevPAR was $213 for Q3 in Las Vegas.
Maybe a better comparison for CZR is MGM which has a more complimentary portfolio of properties in Vegas. MGM’s Las Vegas Strip hotels had a combined RevPAR in Q3 of $146, a bit higher than CZR but their portfolio of hotels may be a bit higher-end. But MGM’s YoY RevPAR growth was worse than Caesars’, coming in at -3.9% versus last year.
Overall, the hotels owned by CZR, as well as by LVS and MGM, had a difficult quarter in Las Vegas and the rest of the United States. We’ll be keeping an eye on all of the casino and hotel stats, so bookmark us and come back soon!