Layin' Down the Chips on Vegas' Strip: A Look at Caesars and MGM's Q2 2024 Outlook 🃏🎊
Persistent Demand for Las Vegas Strip Hotel Rooms, According to Market Analyst Assessment
Ready to beat the odds, buddy? Vegas' main players, Caesars Entertainment and MGM Resorts International, are counting on a hot streak come Q2 2024, and Wall Street's about to roll the dice with them!
According to Barry Jonas, the big-time analyst from Truist Securities, demand for Strip rooms ain't showing no signs of slowing down. His Q1 survey shows a solid performance that's giving both casinos a clear edge against the tough Super Bowl 2024 comparison. And April? It's looking whoopty-frickin'-doo!
"Though recession fears have gone sky-high in recent weeks," Jonas said, "our survey ain't picking up any fundamental changes. That means MGM's low-flyin' stock could be overcompensatin', and Ceasar's five-year slump might just be overhyped – though we're keepin' an eye out for any shifts."
The Q1 survey results? Higher rates despite that dang Super Bowl comparison, with MGM up 3% overall, and Caesars steppin' it up 6%. Monday through Thursday? The weekdays were 15% and 21% stronger, respectively. Weekends? They took a hit, but who needs the weekend when you got conventions?
From January to March, Vegas saw some ups and downs: January was strong due to CES, February got a tad soft, but March? It rebounded, with rates up 6% for MGM and 8% for Caesars. Conventions were the main magnet, with rates 15% higher for MGM and 36% higher for Caesars.
"Caesar's CEO, Tom Reeg, noted on our last call that our survey's direction was alignin' with what he's seein'," Jonas added.
April, it seems, is keepin' the momentum goin'. MGM's seein' a 11% increase in rates, while Caesars got a 1% bump. Weekends are up 4% at MGM and 10% at Caesars, but weekdays are savin' the day: MGM's weekdays are 12% higher, while Caesars' are holdin' steady.
A week-over-week comparison shows that April rates are up for both MGM and Caesars, implying stable fundamentals amidst increasing recession fears and market turbulence.
But what about the geopolitical impact on international travel? Analysts ain't expectin' any sizable effects from potential global conflicts on Las Vegas Strip operators. The overall trend, as it stands, is "mostly steady/positive," suggesting a consistent demand for Sin City accommodations.
So buckle up, partner! The future looks bright on Vegas' Strip this coming Q2 2024. Let's see if Caesars and MGM's gamble pays off! 🎲🍻🎪
- Amidst the increasing buzz surrounding Q2 2024 on Las Vegas' Strip, the industry's heavyweights, Caesars Entertainment and MGM Resorts International, are preparing to take their chances.
- Barry Jonas, an analyst from Truist Securities, believes that the demand for Strip rooms will continue to defy expectations, setting Caesars and MGM apart from the Super Bowl 2024 competition.
- Though recession fears have escalated, Jonas' Q1 survey does not indicate any significant changes within the industry, suggesting that MGM's stock may be overcompensating and Caesars' slump might be overdramatized.
- In Q1, both Caesars and MGM saw higher rates despite the Super Bowl comparison, with MGM up 3% overall and Caesars increasing by 6%.
- The weekdays proved to be strong for both casinos, with MGM's weekday rates up 15% and Caesars' up 21%. The weekends, on the other hand, took a hit.
- From January to March, Las Vegas experienced its fair share of ups and downs, with January strong due to CES, February slightly soft, and March rebounds, resulting in a 6% increase in rates for MGM and an 8% increase for Caesars.
- Conventions were the main drivers behind this upward trend, with MGM's rates up 15% and Caesars' rates skyrocketing by 36%.
- The Q2 2024 outlook remains positive, with MGM experiencing a 11% increase and Caesars reporting a 1% bump in rates. The weekdays are seeing the most growth, with MGM's rates up 12% and Caesars' holding steady.
- International travel concerns due to potential global conflicts are not expected to negatively impact the Las Vegas Strip operators, as the overall trend points to consistent demand for Sin City accommodations.
