Summary
It is going to be a long haul for vegas to return to the glory years of the early 2000's
Analysis
Vegas is really a series of markets, not just one large market that acts simultaneously. For example there is the boulder strip, the las vegas strip, the balance of county (which includes some high profile properties) , and downtown. Add in North las Vegas, Mesquite and Laughlin and Clark County, the main gaming hub of Nevada has many moving parts. At different times it has appeared that certain markets are returning to a'normal" business, only to have them falter in later months.
I would say that the vegas strip still has daunting challenges and dont look for a rejuvenation this year. The best shot seems to be the boulder strip and the balance of county. The eastside Cannery and the M resort seem to have spurred increased volumes without totally cannibalizing existing properties. Downtown, Mesquite and Laughlin have all seen their best days unless an innovative marketing team can employ a new strategy that brings those markets back. MGM is saying, we have hit the bottom, I tend to agree with that but how quickly or if they do recover significantly and when is really the big issue. Stick to regional markets for now and watch the trends in Nevada over the next few quarters.
William Sherlock consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
