Resorts World Las Vegas Poised for Strong Second Half
Following a sluggish first quarter, there are signs of life at Resorts World Las Vegas. That’s prompting some analysts to say the newest Strip venue could be in for a buoyant second half of 2022.
The $4.3 billion Resorts World Las Vegas, the Strip’s most expensive integrated resort in terms of construction costs, opened in June 2021. In the property’s early days, it grappled with restaurant changes and the effects of the coronavirus pandemic, including mask mandates.
COVID-19 issues seeped into the first quarter of this year because of the spread of the omicron variant, and Nevada not lifting its statewide mask requirement until the middle of the quarter. With those factors in the rear view, analysts are forecasting vibrancy at Resorts World Las Vegas in the back half of this year.
RWLV, which has an Asian-inspired design and features several Asian-themed attractions such as a Southeast Asian themed outdoor pool, Singapore-based night club Zouk, Asian restaurants Fuhu and Genting Palace, would likely be able to attract and benefit from the return of Asian visitors,” writes HongLeong Investment Bank analyst Tan Kai Shuen in a recent note.
The Genting venue, the first newly minted Strip property in over a decade, is situated at the northwest end of the Strip, where the Stardust Casino was previously located.
Resorts World Las Vegas Waiting
While Resorts World Las Vegas is the newest casino-resort on the Strip, it shares something in common with its established counterparts: It’s waiting on the earnest return of meetings and convention business.
Since the reopening of gaming venues following the onset of the coronavirus crisis, Thursday through Sunday occupancy at Strip hotels has been strong. But Monday through Wednesday occupancy rates leave something to be desired.
For example, Caesars Entertainment and Wynn Resorts both have substantial convention space that has yet to be tapped, owing to the pandemic. Consensus in the analyst community is that 2023 will mark a true rebound in Las Vegas’s meetings and convention business.
If that forecast proves accurate, it could be a boon for Resorts World Las Vegas, because the property is a short distance from the Las Vegas Convention Center.
Resorts World Las Vegas Data Points
Prior to the venue opening, analysts forecast that the new integrated resort won’t be fully ramped on an EBITDA basis until 2024. They also predicted that it will take that long for the property to reach the optimal capacity of 85% to 90%.
There are other signs of possible momentum for Resorts World Las Vegas. Some Strip operators previously said their convention bookings for the second half of this year and into early 2023 are robust, confirming businesses and trade associations want to get back to conventions in the largest domestic casino hub.
Additionally, data indicates increasing gaming revenue at Genting’s other US venues — Resorts World Catskills and Resorts World New York City.
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