Las Vegas Hospitality Market Report

Expanded offerings heighten metro’s appeal. Almost 42 million people flocked to Las Vegas last year, down just 2 percent from 2019 visitations. Of these, less than 15 percent were visiting for the first time, highlighting the importance of repeat travel as a foundation for growth. Alongside large-scale renovations and future developments like the MLB stadium, new attractions will be critical for drawing first-time tourists into the metro’s stock of repeat visitors, including Universal Horror Unleashed and events like last year’s Super Bowl. Combined with improving international tourism, which accounted for roughly 12 percent of last year’s visits, this should help finally lift room demand above 2019 levels. Geopolitical tensions present a potential headwind to this progress. Even so, last year set records for ADR, RevPAR and booking revenue, with the third forecast to exceed $9.5 billion in 2025 — up nearly 40 percent since 2019. Supply-side pressure on occupancy should also fall after this year. The addition of over 10,000 keys in the last five years nearly quadrupled total 2015-2019 deliveries, yet elevated borrowing costs and tight lending standards are helping restrict construction, which should ease the pace of openings.