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More for Less?

More for Less?

The year 2020 and ahead will see Las Vegas adding thousands of hotel rooms to its inventory. With the looming openings of Resorts World Las Vegas, Circa (Downtown) the Drew (formerly the Fontainebleau) and others, the capacity will expand, but will the revenue per available room (RevPAR)? At the same time, however, more convention space will debut. Along with the recently completed expansions of the Mandalay Bay and MGM Grand meeting spaces, the Las Vegas Convention and Visitors Authority is adding more than 1 million additional square feet, and Caesars is about to debut the Caesars Forum, 550,000 square feet of meeting space behind the Linq, the High Roller observation wheel and the Flamingo.

So will this increase in meeting space encourage RevPAR to continue to increase at the same time room inventory soars? Check out the charts at right—the top chart is the RevPAR through May 2019 and the bottom is the convention attendance for the same period. We’ll revisit it later with the data supplied by RCG Economics, the most complete source of business information in Nevada.

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