A remodeling boom is under way on the Las Vegas Strip, where some 9,000 hotel rooms are undergoing renovations this year at a cost of nearly 0 million.
At least eight hotels are involved in upgrades, encompassing more than 10 percent of the famed boulevard’s 86,000 rooms, and they’re being driven largely by Caesars Entertainment, whose recent emergence from a lengthy Chapter 11 reorganization finds the resort giant with a healthy balance sheet and some $2 billion in cash to refresh and expand existing assets and pursue new developments.
Caesars is remodeling around 4,500 rooms at the Flamingo, Bally’s, Planet Hollywood, Harrah’s and Caesars Palace, whose 1,181-room Palace Tower has been completely renovated at a cost of more than $100 million, including the addition of 10 themed super-luxury suites.
The company also has announced plans for the Strip’s first zip line, Fly Linq, it’s called, a $20 million attraction that will whisk patrons in 10 side-by-side lines from the Linq Hotel, across the Linq Promenade, an outdoor dining, shopping and entertainment venue, to the Flamingo more than 1,000 feet away.
Steve Wynn also has promised a zip line as part of his Paradise Park project, which is expected to break ground in January on a converted golf course behind his Wynn and Encore resorts.
Elsewhere, MGM Resorts International is redeveloping the Monte Carlo into two hotels. The Cosmopolitan of Las Vegas is spending $150 million to upgrade 2,800 rooms. Las Vegas Sands’ Palazzo is renovating all 2,876 rooms.
“It is a competitive market and the room product is clearly a key element in attracting visitors,’’ said John Decree, an analyst at Union Gaming in Las Vegas. “For many hotels, it’s about time. Plus, the financial returns are there.’’
Strip occupancy has averaged nearly 92 percent this year through August with the average daily rate up 4.3 percent over the first eight months to $127.70.
“It’s all about revenue per available room and total spend per guest,’’ said Mehmet Erdem, a hospitality professor at the University of Nevada, Las Vegas. “An upgrade to rooms and service tends to get people to pay more and stay on property.”
The Palazzo, whose remodeling is the first since it opened 10 years ago, will see hallways brightened and rooms outfitted with new furniture, wall coverings, carpets and beds. The casino also is getting a facelift with new carpeting, new column facades and a third bar.
“Every brand and every resort is trying to make sure they are constantly refreshing the guest experience to stay relevant,’’ said Chief Marketing Officer Lisa Marchese. “There is such a density of hotels here that you have to compete for every dollar.’’
