Las Vegas hotel
machinery doesn’t seem to stop to grow, several projects totalizing
thousands of new rooms were announced only last year, but is the city
of las Vegas prepared and in full capacity to fill the thousands of luxury hotel rooms currently
being built?. The city’s infrastructure is reaching the top, the Las Vegas roads are
already overfilled and about to collapse and the airports don’t have the capability
to increase the air traffic or attend more visitors. However, the Las Vegas hotels and casino
owners continue with the plan to build over forty thousand new rooms, which
represents a third of the actual capacity.
To recover the investment
justify those rooms, the hotels’ revenue will need to rise by 75% in the next
four years, which will be "difficult to impossible" due the city’s
current problems on transportation infrastructure said Bill Lerner, Deutsche
Bank analyst and expert.
Plans for a new airport are
still under development and the chances to initiate a new project before 2017 are
really thin. Several hotels and resorts such as the Encore, CityCenter and Boyd Gaming's
Echelon
Place, are under construction and more projects
have been recently revealed. Lerner also declared that is likely that the
hotels will be forced to drop their prices below what operators had intended in
order to recover the investments. Las Vegas
gambling revenues decreased about 1% in the last quarter of 2007, a fact that
makes Lerner think that the general revenues for Las Vegas in 2008 will slow down in
comparison with the previous year.
Articles