Casino hotel rates continue downward trend

Friday, Nov. 2, 2001 | 10:20 a.m.

Room rates at Las Vegas Strip hotel-casinos remain sharply below last year's levels going into Thanksgiving week, according to a weekly survey released by Bear Stearns.

The Bear Stearns survey found three-week advance rate quotes for Nov. 24 -- the Saturday after Thanksgiving -- averaged $118 per night, a 28 percent decline from the year-ago Thanksgiving weekend. Average rates for the Wednesday before Thanksgiving were $83, down 12 percent.

During the weekend, all three major Strip operators -- MGM MIRAGE, Park Place Entertainment Corp. and Mandalay Resort Group -- had average rates 26 to 28 percent below last year's levels, the survey found. During the midweek period, Park Place rates were down 28 percent, Mandalay rates were off 16 percent, and MGM MIRAGE rates were down just 4 percent.

Six Strip properties -- Las Vegas Hilton, New York-New York, Monte Carlo, Stardust, Venetian and Aladdin -- quoted higher midweek rates than last year. But during the weekend, the Monte Carlo was the sole property to post rates higher than last year's.

"The prevailing lower occupancy rates and the resulting lack of pricing traction will be further exacerbated by the seasonal slowing in Vegas between Thanksgiving through the Christmas season, in our view," wrote Bear Stearns analyst Jason Ader.