Two of the largest companies operating on the Las Vegas Strip are publicly traded so had easy access to understand their data. Gaining a more in-depth understanding of how money flows through our home resort market, we analysed the publicly available filings for both companies. Below, you'll find a visual representation of the insights we've gathered for the first large operator we looked at.
The story here is strong. In 2023, this operator’s Las Vegas properties gained an exceptional occupancy rate of 93%, alongside an average daily rate (ADR) of $256 and a revenue per available room (RevPAR) of $237, demonstrating high demand and efficient room management.
In 2023, they continued to see casino profits as the largest driver of gross profit, accounting for 49.54% of the total.. However, the rooms division contributed a close second at 32.59%, with Food & Beverage at 9.72% and Entertainment reaching 8.15%. This change reveals that more than half of this operator’s gross profit came from non-gaming activities—a trend that has been growing for years and shows no signs of slowing down.
As hospitality revenue grows, so does the need for strategic hotel yield management. Gone are the days when a simple "heads in beds" strategy could drive integrated casino resorts revenue alone. Today, optimizing hotel revenue has become just as essential to overall earnings, and this opertor’s focus on progressive hotel revenue practices is a testament to that change.
This is how, in 2023, this operator’s Las Vegas properties boasted an impressive 93% occupancy rate, a strong Average Daily Rate (ADR) of $256, and a Revenue per Available Room (RevPAR) of $237, showcasing the company's practical room management and high demand for its properties.
The story of hospitality revenue driving substantial earnings isn’t limited to this first large integrated resort operator. We also examined a second large operator’s 2023 results, which further highlight the importance of hospitality revenue to integrated casino resorts. This trend reflects a broader move across the Las Vegas Strip, where non-gaming revenue continues to grow in importance.
At this company, gaming revenue accounted for 49.28% of gross profit, with hotel revenue not far behind, contributing 24.72%. While this operator has a larger regional presence than the first, the importance of hospitality revenue remains undeniable.
The company’s hospitality division, with a $2.09 billion contribution to gross profit, benefited considerably from its Las Vegas properties, which accomplished an impressive 92.2% occupancy rate and an Average Daily Rate (ADR) of $155.62. This backs up the growing stature of non-gaming revenue in the overall success of Las Vegas.
The story of Las Vegas’ evolving revenue model is still developing, there’s no doubt that yielded hospitality revenues, including room and entertainment income, will play an interesting role in shaping the city’s future success. Small differences in approach will be crucial in deciding the winners in this space. Questions like: Do resorts have a dynamic, autonomously managed front desk upgrade system? Are 24/7 AI-driven pricing solutions in place? The answers to these questions—and many more—will define the results in the years ahead.
Results in this industry don’t happen by chance. They are pushed by intentional strategies—hotel revenue management yield approaches, effective hotel upgrade programs, and the right revenue management software. It’s this focus that leads to strong results.
This is where our HouseCount Revenue Management System and LuxSell Upgrade Revenue System are among the most widely deployed revenue management solutions on the Las Vegas Strip. We are proud to play a part in the growing success of resorts leveraging hospitality revenue and are excited to be at the forefront of this conversion. Working alongside some of the most prestigious integrated resorts is truly an honor.