Colin Mansfield, a gaming analyst for Fitch Ratings, showed extreme patience while waiting for Boon Tong Kee’s specialty item. This is amongst Resorts World Las Vegas’s seventeen eateries within the Famous Foods Street Eats. The 4.3 billion dollars hotel-casino saw 3000 guests attend the private celebration before the opening of the newly constructed Strip resort. One that opened its door to the public this June 24, causing widespread jamming of the property’s bars and restaurants. The details put into the making of the project by Genting Berhad of Malaysia left Mansfield deeply impressed while he was on tour to check the developments. An intimidating mix consisting of beverage outlets and food made the casino look like a property straight out of Singapore. A July 8 research report submitted to the investment community by Mansfield projected and discussed the recovery period for Las Vegas after a year of pandemic-induced closures and restrictions.
The increment in the number of rooms with an additional 3500 being added is only a representation of 2 percent with regards to the existing offering as quoted by Mansfield. Resorts World’s three hotel brands come as a reward program by the company and are licensed from Hilton Hotels. A slower than projected recovery was concluded from the October 2020 findings updated in a report by Fitch Ratings. The anticipated date now has been pushed back to 2024. While 2023 will see Las Vegas returning to pre-pandemic levels of 2019, as corroborated by Mansfield. The recovery assumptions by Fitch Ratings of the Strip are revised to give a positive outlook where leisure gaming in the domestic market is slowly picking up. This is in comparison to international visitations that were off the charts and included soft convention businesses.
The closing in 2021 will see the gaming revenues of the Las Vegas Strip down by twenty percent in comparison to 2019, as confirmed by Fitch. While 2022 will see the revenues down by six percent. This is despite the upbeat performance this spring, as written by Mansfield that registered a twenty-seven percent jump in revenue figures in comparison to 2019. A positive outlook by Fitch comes with the increase month by month in 2021 that saw a 50 percent rise in the capacity levels this spring.
While Fitch’s revised forecast may appear conservative considering current operational patterns, the possibility of fresh pandemic limitations was taken into account “despite decreasing domestic vaccinations and uncertainties surrounding virus variations.”
If present positive trends continue into the fourth quarter, Fitch will have more confidence in the recovery’s long-term viability.
