Vegas room rates strong

Wednesday, Jan. 5, 2000 | 10:15 a.m.

Strong room rates bode well for the first-quarter earnings of Las Vegas casino companies, Bear Stearns & Co. gaming analyst Jason Ader said today.

Weekday room rates for major Strip properties for the week ending Jan. 29 are averaging 17.4 percent higher than in the year-ago period, he said, even though there aren't any significant events or entertainment attractions scheduled this year.

Ader said that through January, average weekend room prices have jumped 28 percent, while weekday rates are up 8.8 percent.

Park Place Entertainment Corp. has recorded the biggest increases, with weekend rates up 38 percent on average. Rooms at the Las Vegas Hilton are priced 50 percent above a year ago, while Caesars Palace is getting 47 percent more per room. The Flamingo Hilton and Bally's Las Vegas showed more modest gains.

Mandalay Resort Group is recording a 64.8 percent jump in the average weekday prices at its properties due in part to strong rates at its Mandalay Bay and Four Seasons resorts.

Circus Circus rates are up 29.5 percent, while Monte Carlo room prices are 22.5 percent higher, Ader said.

"While these results only comprise one-third of the quarter, they increase our confidence in our first-quarter earnings estimates," Ader said.