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:
|Las Vegas Hotels: Q3||ADR||RevPAR||Occupancy||Hotel Revenue||YoY Room Revenue Growth|
|Wynn Resorts||$289||$259||89.6%||$111 Million||-5.9%|
|Las Vegas Sands||$225||$213||94.4%||$138 Million||0.0%|
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.
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.