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.

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.

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.

MGM Domestic Revenue Fell 1.6% YoY in Q3; Casino Revenue Up Slightly

The Short Take:

  • MGM Resorts’ Q3 2018 domestic revenue fell by 1.6% compared to the same quarter last year
  • The only domestic revenue segment that saw a YoY increase was Casino revenue, which rose by a tiny 0.5%
  • The worst performing domestic revenue segment was Rooms which fell 4.6% YoY

In the third quarter of 2018, total domestic revenue at MGM Resorts declined 1.6%, from $2.267 billion in Q3 of 2017 to $2.231 billion in Q3 2018.  MGM breaks down domestic revenue into four segments: Casino, Rooms, Food & Beverage and Entertainment & Retail.  We’ll take a look at how each segment drove total domestic revenue.

Q3 2018 MGM Domestic Revenue by Segment:

Casino revenue was the only domestic revenue segment that saw a YoY increase in Q3 2018.  And it was a very slight increase – just 0.5%. The $871,974 million in casino revenue was up $4.45 million compared to the same quarter last year.  This year, the casino revenue made up 39.1% of the quarterly domestic revenue.

Q3 2018 MGM YoY Growth of Domestic Revenue by Segment:

All three remaining domestic revenue segments saw YoY decreases.  The segment with the smallest decline was Entertainment & Retail. This segment saw a 1.5% decline compared to last year, coming in at $533,629 million.  This was a $5.23 million decline versus 2017.  Entertainment & Retail made up 15.4% of total domestic revenue during the third quarter.

Food & Beverage did slightly worse.  This domestic segment’s revenue fell $8.85 million compared to the same quarter last year, but on a percentage term the segment fell -1.8%.  21.6% of total domestic revenue came from Food & Beverage in Q3.

The worst performing domestic revenue segment in Q3 2018 was the Rooms segment.  Rooms revenue fell 4.6% year-over-year.  The Q3 Rooms revenue totaled $533.6 million, a $25.88 million fall from Q3 2017.  23.9% of total domestic revenue is generated by the Rooms segment.

All-in-all we saw disappointing domestic performance for MGM on the revenue front. What makes things slightly worse is that the results for Q3 2018 include several weeks of revenue from the newly opened MGM Springfield which was not in operation in Q3 2017.  Without the revenue from Springfield included this year, then the YoY comparisons would have been even worse.

Preview of WYNN Third Quarter Report

When Wynn Resorts reports its third quarter earnings on Wednesday, November 7, they will issue a bevy of data. Of course, they will announce the quarterly EPS and total Revenue, but they will also provide company-specific revenue drivers that can be just as important as EPS.

To prepare for the Wynn Q3 2018 report, we’ve put together some data from the Q3 2017 quarter.  These are good metrics to keep an eye on when Wynn reports on Wednesday and compare what is reported with the comparable 2017 data.

Important note:the Q3 2017 data below has not yet been adjusted for ASU No. 2014-09, Revenue from Contracts with Customers, which reclassifies promotional items such as comps from mainly Casino revenue to the appropriate segment based on the good or service provided. The Q3 2017 data should be updated when Wynn reports its Q3 2018 earnings.

The first item to watch for is revenue by segment.  Wynn usually provides revenue in four segments, with Casino revenue and Rooms revenue probably the most important to watch.

Company-Wide Operating Revenues by Segment Q3 2017
Casino Revenue $1,256,602
Rooms Revenue $175,108
Food and Beverage Revenue $190,854
Entertainment, Retail & Other Revenue $105,500

 

Next, Casino revenue by property provides insight into how the company’s casinos are doing in its two big revenue regions – Macau and Las Vegas:

Casino Revenue by Property Q3 2017
Wynn Macau $567,667
Wynn Palace $514,518
Las Vegas Operations $174,417

 

Hotel revenue is very important for Wynn.  We expect the usual hotel statistics when Wynn reports later this week, including Occupancy, ADR and RevPAR:

Hotel Occupancy Q3 2017
Wynn Macau 97.3%
Wynn Palace 96.1%
Las Vegas Operations 91.4%

 

Average Daily Rate (ADR) Q3 2017
Wynn Macau $246
Wynn Palace $219
Las Vegas Operations $299

 

Revenue Per Available Room (RevPAR) Q3 2017
Wynn Macau $240
Wynn Palace $211
Las Vegas Operations $273

We’ll have full coverage of Wynn’s Q3 announcement on Wednesday, with special attention to the company-specific revenue drivers, so check back then!

Caesars Entertainment’s (CZR) Q3 REVPAR Falls 4.72%; Vegas Properties Down 3.57%

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

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%.

Las Vegas

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’ Competitors

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!

CZR Year-Over-Year ADR Flat Enterprise-Wide, but Non-Vegas Hotels Take a Hit

The Short Take:

  • CZR enterprise-wide cash ADR was flat YoY, coming in at $150.90 for Q3 2018
  • The company’s Las Vegas properties saw cash ADR slide 1.66% in the third quarter, coming in at $153.50
  • Non-Las Vegas properties saw a much larger YoY decrease in ADR.  The ADR for this group of hotels was $121.37, a decrease of 5.48% versus the same quarter a year earlier

In the third quarter of 2018, Caesars Entertainment (CZR) reported that its enterprise-wide cash average daily rate (ADR) came in at $150.90.  This was flat versus the third quarter of 2017.  Taking into account both cash and non-cash ADR, enterprise-wide ADR was $134.12, a decrease of 1.81% versus Q3 2017.

In the Las Vegas market, the cash ADR saw a slide of 1.66%.  The third quarter’s cash ADR of $153.60 was down $2.60 versus the same quarter last year. Looking at ADR in Vegas for cash and non-cash rooms, this ADR was just about flat compared to last year, coming in at 140.93 versus $140.88, a decrease of just 0.04%.

The CZR segment that was the hardest hit was the All Other U.S. hotels, which are the company’s hotels outside of Vegas.  This group’s ADR fell YoY by 5.48%.  The Q3 2018 ADR for non-Vegas hotels was $121.37 versus $128.41 in Q3 2017.

Here’s an overview of the Q3 2018 ADR stats for CZR as well as the year-over-year growth rates:

How do the CZR ADR results line up with other casinos companies in the third quarter of 2018?  Las Vegas Sands (LVS) reported ADR of $225 for its Las Vegas operations, compared to $153 for CZR.  The YoY growth of Las Vegas Sand’s Vegas hotels fell 0.9% in Q3 2018. It should be noted that the two LVS hotels are higher-end properties while CZR has many more hotels on the Strip, from the high-end Caesars to the lower-end Flamingo.

The ADR for MGM Resorts’ (MGM) Las Vegas Strip properties fell 1.9% year-over-year.  In Q3 2018 the company’s Strip ADR was $157.  MGM is probably a better comparison to CZR since both companies have a wide range of property types.  The higher-end MGM Grand competes with Casesars Palace while the lower end New York New York is a good comparison to Harrah’s

We’ll be keeping tabs on all of the Las Vegas data as it continues to roll in during the earnings season.  So stay tuned and check back soon!