ADR, RevPAR and Occupancy Drop in Vegas for Both Las Vegas Sands and Wynn Resorts

The Short Take:

  • At its Vegas hotels, room revenue at LVS was flat year-over-year in the third quarter for Las Vegas Sands while Wynn Resorts saw a decline of 5.9%
  • The YoY growth for ADR declined in Vegas declined for both companies.  LVS was down 0.88% while WYNN was down 3.34%
  • RevPAR was also down with LVS dropping 3.18% YoY and WYNN sinking 5.13%
  • Occupancy also fell at the Vegas hotels for both LVS and WYNN

In yesterday’s article we saw that at the Las Vegas properties that Las Vegas Sands and Wynn Resorts operate total revenue and casino revenue were down substantially year-over-year in the third quarter of 2018, and hotel revenue was also weak. Today we’ll dig in deeper to the statistics that drive hotel revenue.

Here’s a table that summarizes the key hotel statistics we will be diving into:

Total Room Revenue

In the third quarter, Las Vegas Sands brought in $138 million in room revenue at its two Las Vegas hotels.  Unlike its casino revenue which declined significantly, the room revenue at LVS was flat compared to Q3 2017.  Wynn, on the other hand, saw a 5.9% drop in its Las Vegas room revenue compared to last year.  For the quarter, the Wynn and Encore hotels on the Vegas Strip saw $111 million in room revenue.

Average Daily Rate (ADR)

The Las Vegas Average Daily Rate, or ADR, at Las Vegas Sands during the third quarter was $225.  This was down $2, or 0.88%, from the same quarter last year.  Wynn’s ADR was substantially higher than Las Vegas Sands, coming in at $289.  But in terms of growth, WYNN was weaker than LVS with it ADR $10 lower than the third quarter of 2017, or a YoY decline of 3.34%.

Revenue Per Available Room (RevPAR)

Las Vegas Sands saw a YoY 3.18% drop in its RevPAR during the third quarter.  Its RevPAR of $213 was $7 less than the same quarter in 2017. Wynn’s Vegas RevPAR fell even further, from $273 last year to $259 this year, or a 5.13% decline.

Occupancy

Both companies also saw hotel occupancy suffer in the third quarter.  At Las Vegas Sands, the occupancy in Vegas was 94.4%, which is 2.6% lower than the third quarter of 2017.  While Wynn’s Vegas occupancy was lower during the quarter than Las Vegas Sands, its 89.6% occupancy was just 1.8% lower than last year.

Overall, like the results in their casinos, the LVS and WYNN hotels struggled in Vegas.  Both companies saw challenges with all hotel metrics – ADR, RevPAR and Occupancy – and this trickled down to either no YoY growth or declines in total hotel revenue.

Las Vegas Battle: WYNN vs LVS

The Short Take:

  • Both WYNN and LVS saw their Las Vegas revenue decline in the third quarter of 2018
  • Total Vegas revenue at WYNN fell 14.1% while LVS saw a decline of 2.1%
  • Total casino revenue in Vegas fell an astounding 28.4% for WYNN and 4.3% for LVS

By digging through the third quarter financial documents that Wynn Resorts (WYNN) and Las Vegas Sands (LVS) provided within the last few weeks, we see that neither companies’ Las Vegas resorts performed well in the quarter.  While both of these companies now get a vast majority of their revenue and earnings from their Macau casinos, Vegas is still important to them, so we’ll dig into some of the metrics to see what drove the overall declines in Las Vegas revenue for both of these companies.

Here’s an overview of the WYNN and LVS data we’ll be looking at:

WYNN and LVS were very close in terms of total net revenue from their Las Vegas operations.  WYNN, which operates the Wynn and Encore on the Strip, brought in $399 million in revenue during the quarter.  LVS’ two Las Vegas properties, Venetian and Palazzo, saw revenue of $379 million.

While these total revenue numbers look encouraging, they are actually disappointing.  Both companies saw their year-over-year (YoY) Las Vegas revenue shrink during the third quarter.  Vegas revenue at LVS fell 2.1% compared to the same quarter last year. WYNN was even worse, falling 14.1% versus Q3 2017.

What drove this decline in revenue?  For both companies, two of the main revenue drivers are casino revenue and rooms revenue, or revenue from their hotels.

On the casino side of the equation, WYNN brought in about $93 million from gamblers during the quarter. This was a huge decrease compared to the same quarter in 2017.  In fact, casino revenue was down 28.4% YoY.

Read More: Wynn Resorts Casino Revenue Grows 13.6% in Q3, but Vegas Takes a Hit

Las Vegas Sands also saw a decline in casino revenue, but it was nowhere near the magnitude of Wynn’s. LVS Vegas casino revenue for the third quarter came in at $88 million.  This represents a YoY decline of 4.3%.

Read More: LVS Casino Revenue Increases but Some Properties Struggle

The other huge Vegas revenue driver for both of these companies is rooms revenue.  While not as scary as casino revenue, rooms revenue was not exactly stellar in the third quarter.  WYNN saw rooms revenue for the quarter come in at $111 million, a 5.9% drop from last year. LVS’s rooms revenue was flat compared to the same quarter last year, settling at $138 million for the quarter.

We’ll be keeping an eye on the both WYNN and LVS so check back to see if this downtrend in Las Vegas business continues for these casino behemoths, or if what we saw in Q3 was just a blip.

Las Vegas Revenue Falls 4.6% on Average at Six Major Casino Companies in Q3

The Short Take:

  • Combined, six major gaming companies brought in $3.8 billion of revenue from their Vegas operations which is a 4.6% year-over-year decrease
  • Out of the six companies in this study, only one, Red Rock Resorts, posted YoY increases in Vegas revenue
  • Wynn Resorts was the worst performing company in terms of Vegas revenue in this study, seeing its Las Vegas revenue falling 14.1% YoY

With the third quarter results of the most of the large casino companies now in the rear-view mirror we decided to take a look at how each company performed in Las Vegas.  Many of the companies report separate revenue line items for their Vegas operations.  Others, like MGM do not, but they do provide revenue per property which we used to produce the Vegas revenue results.

As expected, MGM Resorts (MGM) was the top player in Vegas in terms of net revenue during the third quarter of 2018.  MGM’s total net revenue for the nine casinos it operates on the Strip totaled over $1.45 billion.  In second place, Caesars Entertainment (CZR) squeezed out $910 million in revenue from its Vegas locations.

Wynn Resorts (WYNN), Red Rock Resorts (RRR) and Las Vegas Sands (LVS) all had very similar total Vegas revenue in the third quarter.  Their net revenue was in the upper $300 million range.  Boyd Gaming (BYD) brought in almost $268 million through its two Vegas revenue segments: casinos that cater to Las Vegas locals and its downtown Vegas properties.

Here’s an overview of the Las Vegas revenue by company for the third quarter of 2018:

 

While these revenue numbers seem impressive, all but one of these companies saw year-over-year decreases in its Vegas revenue.  Several saw dramatic decreases.

The only company on this list that grew its Vegas revenue was Red Rock Resorts which owns or partially owns 20 casinos in town including the Station casinos.  Red Rock’s Las Vegas revenue rose 3.9% year-over-year compared to the third quarter of 2017.  Boyd Gaming’s Vegas revenue just missed a YoY breakeven, falling 0.2%.

Las Vegas Sands and Caesars Entertainment saw modest YoY Vegas revenue decreases.  Las Vegas Sands’ was down 2.1% YoY while Caesars’ declined 2.4%. MGM Resorts fared worse.  Its local properties’ revenue sank 6.5% YoY.

The worst performing company in terms of YoY growth of Vegas revenue was by far Wynn Resorts.  Maybe this had something to do with the turmoil that occurred in the executive boardroom with the ouster and public flogging of ex-CEO Steve Wynn, but regardless of the reason the 14.1% YoY decrease in net revenues at the company’s two Vegas resorts was astounding.

Here’s a look at the YoY growth of each companies’ Las Vegas revenue:

All-in-all, the third quarter Las Vegas revenue for these major players was disappointing.  Taking in aggregate, all six companies discussed in this article produced about $3.8 billion in Vegas revenue during the quarter. This was a fairly substantial decrease of 4.6% compared to Q3 2017.   Here’s to hoping that the fourth quarter results are better for Vegas!

Red Rock Resorts Total Revenue Increases; Casino Revenue Up 4 Percent

The Short Take:

  • Red Rock Resorts’ total revenue increased 1.6% year-over year
  • Casino revenue, which makes up 56% of total revenue grew 4.0% YoY, coming in at $230.7 million
  • Food and Beverage revenue was $94.7 million, a YoY growth rate of 8.4%
  • Both Room revenue and Management Fees decreased YoY, down 9.5% and 28.2%, respectively

In the third quarter of 2018, Red Rock Resorts’ (RRR) net revenues came in at $412.3 million, a 1.6% year-over-year increase.  What drove this revenue increase?  We’ll take a look at how each of the company’s revenue segments performed during the quarter.

Red Rock breaks down revenue into five main revenue segments: the largest is Casino followed by Food & Beverage, Room, Other and Management Fees.

The Casino segment had third quarter revenue of over $230.7 million for the quarter.  This eclipsed, as usual, all of its other revenue segments.

 

Casino revenue made up well over half the company’s total revenue.  In fact, the $230 million in casino revenue represented 56.0% of total revenue, more than double that of the next largest segment.

 

Casino revenue grew at a decent pace during the third quarter, if not a stellar one.  Revenue from gambling grew 4.0% YoY.

 

While the Other category grew the fastest YoY at 10.8%, this segment’s $26.4 million made up only 6.4% of total revenue. Food and beverage, on the other hand, contributed 23.0% of total revenue and the YoY growth for food and drinks spiked 8.4%.

Two of Red Rock’s revenue segments were in the red during the third quarter if looked at on a year-over-year growth basis.  Room revenue, which accounted for 9.5% of total revenue, declined 9.5% from the same quarter of 2017.

Management fees, which is derived from the company’s management of Native American casinos, fell the most of any of the RRR revenue segments.  The $21.3 million in management fees during the quarter represented a 28.2% YoY decline.  This steep decline was attributed to the ending of the company’s management contract at the Gun Lake Casino.  Red Rock still has an active management contract at Graton Resort & Casino.

While the small YoY growth of net revenues was disappointing, the decent growth in Casino revenue was a bright spot.  How did Red Rock’s Casino revenue results match up to other casino companies?  Then check out our reports on MGM, BYD, LVS, PENN, CZR and WYNN.

Eldorado Resorts’ (ERI) Casino Revenue Increases; Hotel Revenue Decreases

The Short Take:

  • Casino revenue made up 74.5% of total revenue for ERI during the third quarter of 2018, a 4.4% YoY increase
  • The Hotel segment brought in 9.2% of total revenue for the company and saw the worst YoY decrease of any of the company’s segments: down 2.6%
  • Food & Beverage revenue also saw a YoY decline, dropping 2.3% versus the same quarter last year

When Eldorado Resorts (ERI) reported its third quarter financials last week, one thing we were able to look at was how each of the company’s revenue segments performed.  ERI’s three main revenue segments are Casino, Food & Beverage and Hotel in addition to two other small contributors to revenue: Pari Mutuel Commissions and Other.

By far, the largest of Eldorado’s revenue segments is Casino.  In fact, casino revenue made up 74.5% of the company’s total revenue in the third quarter.  Here is a chart that shows the dominance of ERI’s casino revenue versus its other revenue segments:

 

In the third quarter, Eldorado brought in over $362.8 million from its casino operations.  Here is another chart that shows how casino revenue is the main revenue driver for ERI:

 

Third quarter 2018 casino revenue saw decent growth compared to the third quarter of 2017.  On a year-over-year basis, Eldorado’s casino revenue climbed 4.4%.  Here is a look at how the YoY growth of casino revenue stacks up against the company’s other revenue segments:

 

As you can see, the company’s two other main revenue segments, Hotel and Food & Beverage, did not fare as well on an annual growth rate basis.

Hotel revenue was the worst performing segment in the third quarter.  The $44.8 million in Hotel revenue represents a 2.6% decrease from the same quarter last year.  While the Hotel segment is not nearly as large of a factor for the company as the Casino segment, hotel revenue did account for 9.2% of total revenue in the third quarter.

Read More: Eldorado Resorts (ERI) Revenue by Region

The Food & Beverage segment performed a bit better than Hotels, but not by much.  Food & Beverage revenue fell 2.3% YoY.  This segment’s $58.2 million in revenue actually represents a larger portion of total revenue than the Hotel segment.  In the third quarter, Food and Beverage made up 11.9% of Eldorado’s total revenue.

Besides these three main revenue segments, ERI breaks out two additional segments, but they are very small in comparison.  Pari-Mutuel Commissions brought in $5.3 million during the quarter, a 3.5% YoY increase.  The “Other” category contributed $16.2 million to total revenue.

In the third quarter, and historically, Casino revenue dominated total revenue for Eldorado.  It will be interesting to see if this changes in upcoming quarters as the company begins to absorb its recent acquisitions of several Tropicana locations among other properties.  Having additional resorts in destination locations such Las Vegas and Atlantic City may begin to push up Hotel revenue.  We’ll keep an eye on all of the events as they unfold!

Eldorado Resorts (ERI) Regional Revenues Fall in Q3 2018

The Short Take:

  • YoY total revenue growth for Eldorado Resorts in the third quarter of 2018 came in at -2.2% with revenue hitting $503.9 million
  • The only regional revenue segment to see a YoY increase was the East region which eked out a +0.7% growth rate with its $127.7 million of revenue
  • Each of the other regions saw YoY revenue decreases with the largest being the Central region which fell 4.7% versus the same quarter last year

Eldorado Resorts (ERI) reported third quarter net revenue of $503.9 million.  This is a 2.2% year-over-year decrease.  So what geographic regions dragged down the results? It turns out that all but one region saw YoY decreases in revenue.

The largest regional segment by revenue, the West, saw a 3.9% YoY decrease in revenue.  The properties in the West brought in a bit over $129.1 million in revenue in the third quarter versus $134 million in the same quarter a year ago.  The West region contributed 25.6% of company-wide total revenue.

The East region was the only region to see a year-over-year revenue increase, but only slightly.  The 0.7% YoY increase brought the East’s revenue up to $127.7 million.  The East region made up 25.3% of ERI total revenue.

 

The South region contributes 21.1% of the company’s revenue.  In the third quarter the revenue in the South region was just shy of $106.6 million.  This represents a 1.3% YoY decrease.

The Midwest region’s third quarter revenue came in at a bit under $100 million, or a YoY decrease of 3.7%. The Midwest contributed 19.8% of Eldorado’s total revenue.

Read more: Boyd Gaming’s Midwest and South region had 6.5% YoY revenue growth

The Central region, which includes the newly acquired Grand Victoria casino in Illinois, equaled 8.1% of total company revenue.  Its 4.7% year-over-year decrease pegged the Midwest’s revenue at $40.6 million.

While the third quarter provided some disappointing revenue data for ERI, the fourth quarter will be interesting to watch.  That quarterly report will for the first time include results from several newly acquired properties including Belle of Baton Rouge as well as several Tropicana properties.

All of Wynn Resorts’ Macau Revenue Segments Up YoY; Casino Revenue Up 19.4%

The Short Take:

  • Total  revenue from Macau was $1.31 billion for the third quarter of 2018 at Wynn’s two overseas properties, a 20.5% year-over-year increase
  • Wynn’s Macau casino revenue jumped 19.4% YoY in the third quarter, hitting $1.129 billion
  • The Rooms revenue segment had the largest YoY growth of any segment, rising 37.1%

When Wynn Resorts reported its third quarter earnings a few days ago, we saw that revenue out of its Macau properties came in at $1.31 billion for the quarter.  This represents a year-over-year increase of 20.5% for the Macau revenue.  Further, the Macau revenue makes up 76.7% of the total revenue for Wynn Resorts.

So where did the Macau revenue increases come from during the third quarter?  Wynn reports revenue in four distinct revenue segments: Casino, Rooms, Food & Beverage and Entertainment, Retail & Other.  All four revenue segments saw positive year-over-year growth for the Macau revenue.

Over 86% of the Macau revenue came from the Casino revenue segment.  Revenue from the Macau casinos hit $1.129 billion for the quarter, up 19.4% from the third quarter of 2017 when the casinos brought in $945.9 million. (Read more: WYNN Casino revenue up 13.6% company-wide).

 

Macau revenue from Rooms at the two hotels, the Wynn Macau and the Wynn Palace, totaled over $72.4 million in the third quarter.  The Rooms segment had the largest YoY increase of any segment, jumping 37.1% versus the third quarter of 2017.  Rooms contributed 5.5% of the revenue out of Macau. (Read more: WYNN RevPAR, ADR and Occupancy for Las Vegas and Macau).

The Entertainment, Retail & Other revenue segment posted the second highest YoY growth, rising 30.4% YoY.  The $63.4 million in entertainment and retail revenue in the third quarter was almost $14.8 million more than a year earlier and made up 4.8% of Macau revenue.

The final revenue segment is Food & Beverage.  While not as strong on a YoY basis as the other segments, it still posted decent annual growth of 13.8%, with revenue coming in at over $45.3 million for the quarter. Food and beverages contributed 3.5% of Macau total revenue.

We’ll be keeping an eye on all of the action at WYNN and all of the other gaming companies, so bookmark us and check back soon!

Wynn Hotel Statistics for Q3 2018: Las Vegas Falls

The Short Take:

  • Wynn Resorts’ Las Vegas Rooms revenue was the highest among the company’s properties, but it saw a decline of 5.9% YoY
  • Wynn Macau’s RevPAR of $273 was the highest in the company while the Las Vegas hotels had the highest ADR at $289
  • The Las Vegas hotels, the Venetian and Palazzo, saw weak occupancy of 89.6% which is down 1.8% versus the same quarter last year

In the third quarter of 2018, Wynn Resorts’ total Rooms revenue from its hotels increased 7.4% year-over-year compared to the third quarter of 2017.  Total Rooms revenue for the quarter came in at just over $183 million.

Total Rooms Revenue by Location

The company’s Las Vegas Operations, which includes the Strip’s Venetian and Palazzo hotels, contributed well over half of the total Rooms revenue, bringing in $110.7 million for the quarter.  On the downside, this was a YoY decline of 5.9%.

 

In Macau, the Wynn Palace’s hotel rooms brought in $44.3 million in revenue while the Wynn Macau sold $28,100 worth of hotel rooms.  The Palace saw its Rooms revenue skyrocket 34.6% YoY while the Wynn Macau’s YoY growth was negative 4.7%

RevPAR

While the Wynn Macau’s Rooms revenue declined 4.7%, it had the highest RevPAR (revenue per available room) at $273.  This was slightly ahead of Wynn Palace’s $264 and the Vegas hotels’ $259.  The Macau hotels both saw double digit YoY RevPAR growth while the Las Vegas hotels’ RevPAR fell 5.1%.

 

ADR

The Las Vegas hotels’ Q3 2018 ADR (average daily rate) of $289 was the highest company-wide, but still a drop of 3.3% compared to the third quarter of 2017.  The Wynn Macau and Wynn Palace both had about the same ADR for the quarter, $276 and $275, respectively.    Both Macau hotels also saw significant YoY RevPAR growth with the Palace’s growing 25.6% and Wynn Macau’s increasing by 12.2%.

Occupancy

The Macau hotels saw their usual near-sold out hotel occupancy for the quarter.  The Wynn Macau occupancy of 99.0% was 1.7% higher than last year while the Wynn Palace’s occupancy ticked down 0.1%, coming in at 96.0% for Q3.  The Vegas hotels fared worse.  The occupancy in Vegas of 89.6% for the quarter was a decrease of 1.8% versus last year.

Overall, the third quarter hotel results were fairly strong for Wynn’s Macau hotels.  Las Vegas, on the other hand, was a different story.  Like its Casino revenue, the Rooms revenue was very soft in Q3.

Wynn Resorts Casino Revenue Grows 13.6% in Q3, but Vegas Takes a Hit

The Short Take:

  • Wynn Palace in Macau had both the highest overall casino revenue of the company’s properties and it also had the largest year-over-year casino revenue growth
  • At the gaming tables, Wynn Macau’s average win per gaming table per day among the profitable VIP customers fell 18% YoY
  • Wynn’s Las Vegas casinos struggled during the third quarter, with casino revenue down 28.4% year-over-year

While Wynn Resorts’ (WYNN) total casino revenue of $1.22 billion was an increase of 13.6% in the third quarter of 2018 versus the same quarter a year ago, the growth was far from equal across Wynn’s properties.

Total Casino Revenue

The Wynn Palace in Macau had the highest casino revenue in the third quarter, coming in at over $635.5 million.  This represents an amazing 39.9% year-over-year growth rate.

 

 

Wynn Macau’s total casino revenue inched up just 0.9%, from $498.8 million in Q3 2017 to $503.6 million this year.  On the other hand, casino revenue at the company’s Las Vegas operations, which include the Venetian and Palazzo casinos, fell an astounding 28.4% YoY.  The Las Vegas casino revenue was well under $100 million at $92.9 million.  This is a $36.8 million drop from the third quarter of 2017.

One interesting way to look at the casino revenue is on a unit win per day.  To do that we’ll take a look at the average win per slot machine per day and the average win per gaming table per day at the three Wynn properties during the third quarter.

Win Per Gaming Table Per Day

For its two Macau casinos, Wynn breaks up table game wins into two customer groups: VIP and Mass Market. VIP’s are the high rollers while Mass Market comprises the regular casino goers.

The Wynn Palace dominated both of these markets at the gaming tables.  It’s Mass Market win per gaming table per day was $16,291 which is a 55.3% YoY increase.  In the more profitable VIP space, the daily win per gaming table shot up 22.5% compared to the same quarter last year, to $51,463 won every day at each table on average.

 

Wynn Macau held its own at the tables with the Mass Market crowd.  The daily win per table for this segment hit an average of $13,625, a 19.4% increase from last year.  Where Wynn Macau faced some issues was with the VIP crowd.  The average win per gaming table per day fell a staggering 18.0%. The Q3 2018 win was $42,061 per table per day, a $9,263 drop from the same quarter of 2017.

On YoY growth terms, the Las Vegas casinos fared even worse.  The average daily win per gaming table was $4,003 per day in Q3, a 34.0% YoY drop.

Win Per Slot Machine Per Day

The daily win per slot machine tells just about the same story as the gaming table wins.  In Macau, Wynn Palace in Macau had a 14.2% increase in the average slot machine win per day, growing to $474 per machine.  Wynn Macau did not perform as well, but it did still have positive YoY growth.  It’s $447 average win per machine per day was 6.2% better than the same quarter last year.

Vegas, though, ran into trouble at its slot machines.  Slot wins per day per machine fell 4.6% compared to Q3 2017.  Each slot machine won $334 on average per day during the quarter, a decrease from last year of $16 per machine each day.

 

As you can see, the casino revenue and wins for the Wynn properties are definitely a mixed bag. Wynn Palace performed well, but probably at the expense of Wynn Macau.  Las Vegas faced some strong headwinds, possibly resulting from the executive boardroom turmoil and also a slight downdraft in overall Vegas business.

WYNN Segment Revenue: Casino Revenue Jumps 13.6% YoY

Wynn Resorts just reported its third quarter 2018 results.  WYNN reports revenue in four segments: Casino, Food & Beverage, Rooms and Entertainment, Retail & Other.  Three segments had positive year-over-year (YoY) increases in revenue and one segment was negative.  Here is a quick overview of the revenue by segment for the quarter.

Casino revenue hit $1.222 billion for the quarter.  This is a year-over-year increase of 13.6% compared to Q3 2017.  This was the largest YoY increase of any of the four revenue segments.

The Rooms segment had a YoY increase of 7.4%.  Total Rooms revenue surged to $193.874 million.

The Entertainment, Retail & Other category also saw a YoY increase.  The segment’s revenue of $183.044 million is a 4.5% increase from the same quarter last year.

The only segment that saw a decrease was Food & Beverage.  Food and drink sales decreased 3.1% YoY, coming in at $110.125 million.

Here are two charts that show the segment revenue and the YoY growth for each of Wynn’s revenue segments:

 

Stay tuned as we digest all of the WYNN stats and figures.  We’ll have more reporting for you soon.