Las Vegas Hotel Industry Faces Challenges Amid Transformations

Mirage. The Las Vegas Convention and Visitors Authority (LVCVA) reported that the region will not fully recover from the resulting reduction of over 4,500 rooms until the opening of the Hard Rock Las Vegas in 2027.

The Tropicana officially ceased operations in April, with its two towers demolished in October. The site is set to host a $1.75 billion, 33,000-seat Major League Baseball stadium for the Athletics, alongside a new Bally’s Corp. resort. Similarly, the Mirage shut its doors in July to pave the way for the development of the $1.5 billion Hard Rock Las Vegas by its Seminole Indian Tribe owners.

This new project will include a striking guitar-shaped hotel tower replacing the iconic Mirage volcano. The Hard Rock’s debut is anticipated in spring 2027, while the baseball stadium is expected to open by spring 2028.

A Net Loss in Hotel Capacity and Convention Space

Despite the closures, the region gained a small boost from two new nongaming hotels and renovations at the downtown Circa Resort, resulting in a net loss of 4,195 hotel rooms for the year. Additionally, Southern Nevada’s convention space diminished by 271,959 square feet due to the Tropicana and Mirage closures.

The new nongaming properties include the $20 million Atwood Suites Henderson on Water Street and the Homewood Suites by Hilton North Las Vegas on Craig Road, both of which opened in November. Together, these properties added 213 rooms to the area’s inventory.

The Las Vegas hotel scene is set to regain some momentum in 2025, with six projects slated for completion. The most notable is a new 384-room tower at Penn Entertainment’s M Resort in Henderson. This $206 million expansion will also bring an additional 40,000 square feet of convention space and is expected to open in summer 2025.

Another groundbreaking development is the Otonomus Hotel, an $85 million project billed as the world’s first AI-powered hotel. Located near Allegiant Stadium, this 182-room property aims to personalize guest experiences using proprietary technology. Otonomus is scheduled to open in March 2025.

Four additional nongaming properties will contribute 1,276 rooms to the region’s inventory in 2025. These include Spark by Hilton Las Vegas Airport, Element Las Vegas Airport, and two properties in Symphony Park: Element by Westin and the AC Hotel by Marriott, which will also offer 18,025 square feet of convention space.

Investments in Tourism and Renovations

In 2024, Las Vegas saw a total of $757 million invested in tourism-related amenities. Key projects included Ole Red Las Vegas, a $30 million music club at the Horseshoe; Luxor’s Play Playground immersive attraction; the Atomic Golf entertainment complex; and Tiger Woods’ PopStroke miniature golf course. Additional attractions included Swingers Las Vegas, Jason Aldean’s Kitchen and Rooftop Bar, and a Vegas Loop transit station at Westgate Las Vegas.

Major renovations also contributed to the city’s evolving landscape. Bellagio’s Spa Tower underwent a $130 million room makeover, while the Rio’s Ipanema Tower received a $340 million update. Other notable projects included a $100 million remodeling of the Mandalay Bay Convention Center and a $10 million backyard and pool renovation at the Silverton.

Nearly $15 billion in projects are planned for 2026 and beyond. These include the completion of the Hard Rock International development, the Athletics baseball stadium, and the Brightline West high-speed rail connecting Las Vegas to Southern California. Additionally, plans for NBA-ready arenas by the Oak View Group and LVXP hint at the potential arrival of a Las Vegas-based NBA team.

With these transformative developments on the horizon, Las Vegas continues to adapt and expand, ensuring its status as a premier destination for tourism, entertainment, and sports.

Source:

”Las Vegas catching up on room losses after Tropicana, Mirage closures”, cdcgaming.com, December 28, 2024.