Las Vegas luxury hotel rooms going cheap
Not so long ago, Las Vegas was the ultimate in luxury destinations, with five-star hotels offering everything America’s playground had to offer at exorbitant rates. Typical room rates for a Las Vegas luxury hotel were anything from $200 up per night. The financial crisis has had a substantial impact on Vegas’ economy; and with unemployment up to more than 13% and visitor numbers dropping like a brick, things have changed a little.
Digital journal has done some investigating and discovered the current room rates for some of the top hotels in Las Vegas. Rate sare as follows:
- The Palms – $58 per night
- The Sahara – $18.75 per night
- The Bellagio – $45 per night
- The Wynne – $75 per night
Digital journal. Compared to last year’s rates, these prices are massively reduced. Of course, being Vegas, no matter the room rate, you are still leaving penniless, but this is a clear trend, and when the City Center opens there will be an even bigger glut of empty luxury hotel rooms, so expect even bigger discounts.
The hospitality industry is suffering even more than the real estate industry, and Vegas is at the tip of the iceberg. Visitor numbers are down 6%; gambling income down 15%; and the foreclosure rate is the highest in the country at something like 7 times the national average. There is still a substantial number of towers-in-progress, and the number of casinos filing bankruptcy continues to grow.
Las Vegas luxury hotel rooms going cheap
After posting a $176 million second quarter loss, The Las Vegas Sands is currently seeking $400 million in short term refinancing to restart construction on their $12 billion, 20,000-room hotel and casino behemoth in Macau. This announcement caused their shares to drop 16%.
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Comments on Las Vegas luxury hotel rooms going cheap
It seems not only have the real estate market that has been affected by the downturn, but also the travel market. But some of the countries are holding up well to the situation, the travel heaven of Dubai still shows progress in travel and real estate , especially luxury market. websites like www. luxhabitat .ae has a wide variety of listed luxury properties , all equally desirable. Hence some hope remains.
I’m quite confident that the downturn will not stay long. There are some positive sign shown in many counties.
I am sure you are correct. Although – how long is “not long”? It has already been going on for 3 years in the US. What positive signs have you seen in Las Vegas?
Well, for once Mark, I’ll be the pessimistic one. Even though the economy “might” slow down its rate of decrease (which is good news!), I personally do not believe that some niche markets like Vegas, Dubai, Miami or Spain, whose business model rely mostly on real estate speculation in a booming economy, will be able to resorb the glut of empty projects any time soon. (phew that sentence is way too long). For the same reason, I do not see the luxury segment market picking up any time soon. Once Vegas, Dubai and villas above $ 2 million start selling again, the crisis will be over, and I do not believe that anyone has a crystal ball powerful enough to forecast when this will be.
I would have to agree with you. There is a stunning amount of inventory. Even discounting the part built projects, I don’t see those markets picking up any time soon. And a few of them – such as Miami – may never recover.
When the recovery in these places might happen is anybody’s guess. The developers in Dubai are facing all sorts of issues and Nakheel is refusing to refund deposits on canceled projects to pay a $3.5 billion Islamic bond due in December.
http://internationalpropertyinvestment.com/property-investors-clash-with-nakheel-in-dubai
I’m just back from Las Vegas and noticed a big difference in the amount of people in the casinos compared to when I was there 4 years ago.
The word in the UK now is that the economy is starting to take a turn for the better, lets hope the turnaround has already begun and that Vegas will be back to its best before long.