Revenue diversity is fine but has it gone too far?
- Non-gaming (room, food & beverage, and entertainment) revenues accounted for 62% of total Strip revenues in Fiscal Year 2011 (ending June 2011), far higher than its 49% proportion seen 15 years ago
- Vegas operators e.g. MGM, CZR, STN, have been more dependent on hotel revenue growth. Unfortunately, Vegas REVPAR growth is trending negative in Q3 compared with a 15.4% growth rate in 2011, as it has become difficult to push rates higher.
- Our big issue continues to be that fewer young people are playing slots and slots are the highest margin revenue stream in Vegas