Our network

Room Rates Rise As Las Vegas Convention Business Booms | Business

Title (Max 100 Characters)

Room Rates Rise As Las Vegas Convention Business Booms
Business

LAS VEGAS - Las Vegas has the glitz and glamour conventioneers at the Consumer Electronics Show desire. The city also offers some of the finest hotels in the world, and for the next several days, room rates are pricey.

"The Wynn, I think, was around $269," said Canadian visitor Stan Ossias.

"They're expensive for these conventions. That's what they do. They just raise the prices," said visitor Matt Hill.

Applied Analysis principal Brian Gordon says the higher room prices provide much-needed income for the local economy. That helps keep casino workers on the job. Gordon says a weekend like this generates enormous public revenue from gaming and hotel room taxes.

"When you think back where we were one and two years ago, obviously, it's a much different picture," he said. "When revenues were sliding across the board, the demand was relatively weak. What we started to see is some of this firming up. Part of it is attributable to the increased demand that we're expecting in 2011 in terms of the convention business."

"It's just a function of supply and demand," Gordon said.

Many worried in recent years that high prices for food and lodging in Las Vegas would drive CES out of town. Consumer Electronics Association Senior Vice President of Events and Conferences Karen Chupka says CES is not leaving Las Vegas anytime soon, especially now that the Las Vegas Convention Center is an official World Trade Center site.

"We are committed for at least the next five years, but I can tell you that we have days far beyond that," Chupka said. "So, I can tell you Vegas will be our home for quite some time."

With the opening of the Cosmopolitan last month and the Aria and Mandarin Oriental last year, Las Vegas now has 148,000 hotel rooms ready to meet the conventioneers' demand.

Analysts expect room rates to rise this year, but not reach prices seen in 2006 and 2007.

Business

The Strip Deals

The Strip Businesses