- Yesterday I showed that June’s YoY decline in slot volume of 6.1% actually fell sequentially from May’s 5.8%. The deteriorating fundamentals can also be seen in both the key visitation and hotel stats shown in the following charts. Strip RevPAR declined 18% in June, down from an 8% decrease in May, driven by both rate and, surprisingly, occupancy. Turning to visitation, both air and drive-in traffic declined at an accelerating rate. People are flying less, people are driving less. I don’t know how anyone can look at these stats and argue that business levels improved sequentially during the quarter.
- We won’t see July’s numbers for another month but my intelligence says there won’t be improvement. From here on out, we’re relying on the flop to determine Vegas’s hand. MGM management predicted a fundamental acceleration in Q4 and called Q2 the trough. However, in this business with short booking windows, not even the dealers know until the cards are turned over.
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