Las Vegas Strip hotels witnessed a remarkable surge in business during the debut of the Formula One Las Vegas Grand Prix, with opinions divided on the overall success of the event.
In a departure from the F1 races in Austin and Miami, the buzz in Las Vegas hotels commenced from Wednesday evening, suggesting that visitors were eager for an extended experience of the city's offerings. The inaugural Vegas race piqued immense curiosity about the spectacle of F1 cars zooming through the Strip.
Guests likely arrived by Wednesday to secure prime spots for the inaugural glimpse of the F1 cars during the Thursday night practice session. The cancellation of this session due to track issues added to the event's drama, yet from Wednesday to Sunday, hotel earnings soared to nearly $220 million.
Despite early reports of hotels cutting prices before the Grand Prix, the average daily hotel rate on the Las Vegas Strip saw a significant rise from Monday to Sunday during the event week. The peak in hotel rates and occupancy was noted from Thursday to Saturday.
During this peak period, the ADR reached $629, marking a staggering 134% jump from the previous year. The most pronounced rate increase was on Thursday, skyrocketing by 207%, or $390. Luxury hotels, forming over 40% of the Strip's accommodations, boasted rates of $952 and $962 on Friday and Saturday nights, respectively, exceeding last year's rates by over $500.
Hotel occupancy from Thursday to Saturday averaged 89.4%, slightly lower than last year's 92.5%. This minor decline is often seen in mega events where some visitors prefer to steer clear of large crowds. Nevertheless, occupancy rates exceeded 90% on Friday and Saturday, translating to over 190,000 occupied rooms.
The Las Vegas Grand Prix, slated to be an annual event until 2032, is anticipated to drive substantial capital investment in the area.
Source: Emmy Hise, CoStar, MMCG