Harrah’s Entertainment Inc., the world’s biggest casino operator, is confident it will be just fine despite the coming influx of new casino hotels on the Las Vegas Strip. MGM Mirage, Las Vegas Sands Corp., Wynn Resorts LLC and Boyd Gaming all currently have projects on the go.
“There is a noticeable gap in premier tier and certainly value tier properties. That’s historically been a very important market for us,” Chief Financial Officer Jonathan Halkyard said, referring to the fact that most of the new venues are aimed at high-end customers.
“There are many customers who present high-spend levels, but don’t want to spend $550 on a room,” Halkyard said.
In addition, some hotels will be closed or demolished for the new projects, which in the near-term will mean a downturn in supply, the Harrah’s CFO said.
“In the near term — the next 18 months to two years — there will be some contraction as we see some supply, including ours, come out of the market,” Halkyard said.