Dive Brief:
- In the fourth quarter of 2024, Caesars Entertainment posted net revenues declines of 1.1% year over year, according to a Tuesday earnings report. In Las Vegas, where the company operates several prominent resorts along the Strip, Caesars saw net revenues down roughly 0.5% year over year in Q4.
- Caesars also reported that adjusted EBITDA for its Las Vegas segment was down roughly 1% year over year in the fourth quarter.
- Despite the declines, CEO Tom Reeg said that Las Vegas is experiencing stable conditions with continued high occupancy and strong ADRs. He added that competitive pressures in the segment were offset partially by Caesars’ openings across the country in Q4.
Dive Insight:
Reeg said he was proud of Caesars’ performance in Las Vegas in Q4 despite tough comparables from the same quarter last year, when F1 hosted its inaugural Las Vegas Grand Prix.
Caesars competitors MGM Resorts International and Wynn Resorts noted declines for the week of 2024’s race compared to the year prior during their respective earnings calls.
For Caesars, occupancy in Las Vegas in Q4 was 96%, down slightly from last year against the F1 comparables, President and COO Anthony Carano shared during a Tuesday earnings call.
The fourth-quarter openings of Caesars New Orleans and Caesars Virginia in Danville, Virginia, offset pressure in Las Vegas, Reeg said.
“Virginia has been beyond our wildest expectations in terms of performance,” Reeg said during the call, adding that the New Orleans property had a very good fourth quarter and a spectacular Super Bowl earlier this month.
Looking ahead in Vegas, Reeg expects group travel to drive growth in the segment.
“Group business will increase this year over last year,” he said on the call, adding that group business will also increase significantly in 2026.
Hospitality professionals told Hotel Dive earlier this year that evolving group travel in 2025 will be a big opportunity for hotels in the U.S.
