Las Vegas Hotels Experience Significant Performance Decline

News Summary

Las Vegas is facing a sharp decline in hotel performance, with hotel occupancy rates falling dramatically this summer. A preliminary report reveals a 14.9% drop in June and a 16.8% decrease in July occupancy rates. Furthermore, revenue per available room (RevPAR) dwindled by 28.7%, significantly impacting overall hotel metrics in the U.S. Visitor counts also decreased, influenced by a notable drop in international arrivals. Hotels are responding with promotional strategies to attract visitors, while the Las Vegas Convention and Visitors Authority ramps up marketing efforts amid ongoing challenges.

Las Vegas is currently grappling with a significant decline in hotel performance, showing some of the steepest year-over-year drops among major U.S. markets this summer. Preliminary data from STR indicates that hotel occupancy in the city fell by 14.9% in June 2025, which might represent the deepest monthly decline of the year. This downward trend continued into July, where occupancy for the week ending July 5 saw a 16.8% decrease, dropping to 66.7%.

Along with occupancy rates, revenue per available room (RevPAR) has also taken a hit, plummeting by 28.7% to reach $102.75 during the same period. The underperformance of Las Vegas hotels significantly influenced overall hotel metrics across the U.S.; analyses reveal that, without Las Vegas’s numbers, the national RevPAR figures would demonstrate a relatively stable performance rather than a decline for the week ending July 5.

Visitor counts have also seen a dip, as May’s figures reported a 6.5% decrease, totaling 3.4 million visitors year-over-year. A critical factor contributing to this decline appears to be a substantial drop in international arrivals, particularly from Canada. Since the beginning of 2025, Las Vegas has faced persistent decreases in international visitors, with only January seeing an increase. June data noted a significant 13.2% drop in international arrivals.

Experts suggest that the downturn may be part of a natural market cycle, as Las Vegas typically experiences lower sales during the hotter spring and summer months. Moreover, diminished consumer confidence, especially among budget-conscious leisure travelers, has exacerbated the challenges facing the tourism sector.

The Las Vegas Convention and Visitors Authority (LVCVA) has anticipated a “relatively soft summer” and has escalated its marketing spend by 30%, marking the largest increase in its history. The focus of the LVCVA’s marketing strategy is to communicate that Las Vegas offers experiences suitable for all budgets, while also enhancing investment in online travel agencies (OTAs).

Promotional Strategies from Hotels

In response to the downturn, several hotels in Las Vegas have introduced promotional strategies aimed at attracting visitors. For instance, Resorts World Las Vegas has launched the “All Resort, No Fees” package, eliminating resort fees through early September. This package includes additional benefits such as complimentary parking and nightly resort credits. In an effort to enhance daytime visitation, the resort has also introduced affordable lunch menus and happy hours.

Other hotels are adopting similar value-oriented approaches. For example, the Sahara Las Vegas has options to waive resort fees or provide daily dining credits. Caesars Entertainment has rolled out discounts on room rates, spa services, and attraction tickets. Additionally, The Strat has created a “Summer of Value” package featuring lower room rates that cover resort fees and other benefits.

Looking Ahead

Despite the current challenges posed by the drop in international visitors and economic uncertainty, industry insiders maintain a degree of optimism about the upcoming fall and winter seasons. Strong convention schedules and heightened interest in trade shows are expected to bolster tourism. In fact, convention attendance in May saw a year-over-year increase of 10.7%, which may indicate sustained demand for business events.

Looking forward, projections for future bookings through the end of 2025 and into 2026 appear to be robust, particularly within the event and group sectors, which typically contribute a more significant portion of profits compared to leisure tourism. Overall, Las Vegas is actively navigating its current challenges while implementing strategies aimed at revitalizing its tourism industry.

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Additional Resources

• Travel Weekly
• Travel and Tour World
• CoStar
• Google Search: Las Vegas hotel occupancy
• Wikipedia: Tourism in Las Vegas